Rovio Entertainments Ltd“The Success Story of Angry Birds”

Group Efforts ByAlaap Batra (A-26)Sukrit Vig (A-47)Gagan Aggarwal (A-40)Chetanya Rajput (A-27)Ishtpreet Singh Khroud (A-36)Jatin Bajaj (A-35)

Rovio Entertainment Ltd.

2003

• Three students from Helsinki University of Technology, Niklas Hed, Jarno Väkeväinen, and Kim Dikert participated in a mobile game development competition.

2005

• Relude received its first round of investment from a business angel, and the company changed its name to Rovio Mobile.

2009

• Rovio released Angry Birds, a slingshot-puzzle game for the iPhone designed by Senior game designer Jaakko Lisalo

2011

• Raised $42 million in venture capital funding from Accel Partners, Atomico and Felicis Ventures.

• Changed its name to Rovio Entertainment Ltd.

Angry Birds in Prototype Phase• The game concept went through numerous

changes, but the prominently-browed avians remained.

• Need of an enemy (sickly green pigs).

Competitors

• Activision Blizzard, Inc. – World of Warcraft, Call of Duty, Spider-Man, X-Men, Shrek etc.

• Capcom Co. Ltd. – Street Fighter, Resident Evil, Dead Rising, Lost Planet, Mega Man etc.

• Imangi Studios – Temple Run, Temple Run Brave, Harbour Master, Max Adventure etc.

• Gameloft – Asphalt, Ice Age, Men in Black, Modern Combat, Dungeon Hunter, Brothers in Arms, The Dark Knight Rises etc.

• EA Sports – FIFA, Skate it, NBA Jam, Need for Speed, Fight Night Championship, Madden NFL, Tiger Woods PGA Tour etc.

STRATEGY OVERVIEW

EXTERNAL ENVIRONMENT• Boom in Smartphone Market• Rise in disposable income

STRATEGY FORMULATIONDevelop Engaging Games for touchscreens

STRATEGY IMPLEMENTATION• Angry Birds is Developed• Look for new platforms (markets)

STRATEGY EVALUATION• Angry Birds is a success• New choices for consumer• Release updates and improve the

game

SMARTPHONES ERA

•Smart Phones are defined to be enhanced mobile phones that perform functionalities other than the

typical phone.

•These enhanced features can be anything from email and internet to a full keyboard.

•The history of Smartphone takes us to the first Smartphone called Simon, introduced by IBM in 1992.

This device contained calculator, address book, email, games, notepad and fax.

•The Smart Phones available today are capable of performing functions

Equal to that of a Computer.

SIMON by IBM

OPERATING SYSTEMS

Various Operating systems available in the market include:

• Android

• Windows

• iOS

• BlackBerry

• Mango

• Symbian

• Bada

Figure 1.2 - Market Share of Mobile OS (Source - Technobuffalo)

THE APP BOOM• This great boom in the Smartphone market has lead to a great boom in the app

world and specially Smartphone gaming.

• The rate of growth of the various application markets is tremendous.

• The size of various app stores in United States in March 2011 was:

Numbers of Downloads (Android)Product Release Date Downloads

Angry Birds Seasons Dec 2010 612,196

Angry Birds Oct 2010 1,380,790

Angry Birds Rio May 2011 552,149

Angry Birds Space March 22, 2012 469,296

Amazing Alex Demo July 23, 2012 23,060

Amazing Alex July 23, 2012 4240

Bad Piggies 27 September 2012 35,705

Stats Date – 7th Oct 2012

SUCCESS STORY

SUCCESS STORY

ENOUGH HOMEWORK DONE

Took 8 years to attain this position Collected reasonable capital before starting this project Team of experts with more than 5 years of game making

experience Developed in 8 months Slow start and then rapid growth

SIMPLE IDEA LEADS TO GREAT PRODUCT

Simplicity and success like ‘Snakes’ Won three major awards, Webby Award (New York based

International Academy of Digital Arts and Sciences in May 2011), "Best Game App" & "App of the Year" (UK Appy Awards) and best Finnish game (the Finnish Association for game industry In November 2010).

VIRAL MARKETING Uses social networks to increase brand awareness Targets word of mouth or websites like Facebook, Twitter,

Google+ etc. Successful viral advertisement as original, brief, amazing, non-

obvious. Other example- Why this Kolaveri di, Gangnam Style etc

DIVERSIFICATION

New variants- Angry bird space, Amazing Alex etc. Apparels, plush toys, key chains, bag clips, pillows, magnets

and much more entertaining stuff First official theme park- Sarkanniemi Amusement Park in

Tampere, Finland Another official theme park is set to launch later this year in

Haining, Zhejiang Province, China More theme parks has been planned in China, US, England

and Finland. Soon to be released –Star Wars Themed Angry Birds

Angry Birds in Popular Culture

Competitive Forces (Porter’s 5 Forces Model)

Intensity of Rivalry

Medium

Bargaining Power of Customers

Medium

Bargaining Power of Suppliers

Low-Medium

Threat of New Entrants

Medium

Threat of SubstitutesHigh

SWOT Matrix– Popularity of Angry Birds

–Customer Centric Approach with

Special emphasize on retention

– Regular Updates

–Simple and Great ideas.

–Engaging Products

– USP - Fun

–Privacy issue

–Limitation of Social Networking as PR Tool

–Product Being More Well-known

than The Company

– Advertisement Revenue

– New OS – Mango

–Viral Marketing

– New Games Like Temple Run

–Rising popularity of High

Resolution Graphic Games

Piracy

WeaknessesStrengths

Opportunities Threats

BCG Matrix of Product Lines

Market Share

Mar

ket G

row

th R

ate

DOGS

STARSQUESTION MARK (???)

CASH COWS

• Angry Birds and Rio• Merchandising• Old Platforms – Android and

iOS

• Game – Amazing Alex• Theme Parks• New Platforms – Google

Chrome and Social Gaming (Facebook)

• Game - Angry Birds Heikki

• Game - Angry Birds Space• New Platforms – Mango and NFC• Old Platforms – Android and iOS

High

High

Low

Low

Product/Service Life Cycle Analysis

MaturityDevelopment Growth

Angry Birds(iOS)

Dec 2009

Decline

Time

Mar

ket V

alue

Plotted the relative market life cycle positions of products,

Angry Birds Seasons Oct 2010 and Also Released for Andriod

Angry Birds Rio March 2011 and In Browser Version for Google Chrome

Angry Birds Space Feb 2012 and Launched on Facebook (Social Gaming) Angry Birds Heikki March 2012

Amazing Alex ,July 2012, Merchandising, Movie and

Theme Park

Extension

Decline

Angry Bird Magic (Nokia NFC)

Don’t Put Your All Eggs in One Basket

Don’t Put Your All Eggs in One Basket

Diversified Product and Services Offered

Product Life Cycle Analysis (Detailed)

Angry Birds "Mine and Dine“

June 2011

MaturityDevelopment Growth

Angry Birds

“Poached Eggs” (iOS)

Dec 2009

Angry Birds

“Mighty Hoax”

Feb 2010

Decline

Time

Mar

ket V

alue

Plotted the relative market life cycle positions of products,

Angry Birds "Danger Above“ Apr 2010

Angry Birds

“Ham 'Em High"“

Dec 2010Mighty Eagle Introduced

Angry Birds Birdday Party“ Dec 2011

Angry Birds Seasons Oct 2010

Angry Birds Rio March 2011 and In Browser Version for Google Chrome

Angry Birds Space Feb 2012 and Launched on Facebook (Social Gaming) Angry Birds Heikki March 2012

Amazing Alex ,July 2012, Movies and

Theme Park

Angry Birds Magic (Nokia NFC)

ExtensionDecline

Product Innovation Matrix

Impact of Technology Technology Readily Available New Technology Concepts

Exis

ting

Mar

kets

New

Mar

ket O

ppor

tuni

ties

Mar

ket O

ppor

tuni

ty

REVOLUTIONARY INNOVATION

NICHE INNOVATION ARCHITECTURAL INNOVATION

INCREMENTAL INNOVATION

• High Resolution Games• Focus on Angry Birds and

Amazing Alex• Develop Bounce for

Touchscreen

• Disney• Touchscreen Televisions

• Focus on more Touchscreen Device – Laptops and MS Surface

• New Platforms

• Develop Games for X-Box , Wii and Playstation

• Develop innovative Apps

The New Product Development Strategy

Amazing Alex• Launched on July 12th 2012, Rovio finally decided to

get over its Angry Birds passion and launched Amazing Alex.

• ENGAGEMENT – HIGH. In Amazing Alex, when you solve a difficult level, you’ll likely continue to play that level, hoping to get that final third star, or to fine-tune your assembly line contraption to share with others using Game Center.

• CONCEPT – Physics Based. The best thing is that there’s no “right way” to solve a puzzle.

• PRICE - On both Android and iOS, Rovio charges Rs 54 for the regular smartphone version, and Rs 166 for an HD version. The only difference between the two versions is scaled-up graphics.

• RESPONSE - Little amount of data can be collected in terms of numbers as this is very early to gather facts as not even month has crossed since its launch.

• 5 Million(approx.) downloads (On July 26, 2012)

• 226,782 Fans on Facebook (as on 7th October, 2012)

VERDICT - Amazing Alex might not match up to Angry Birds.

Some New Development (Till Date)

COMPETITOR ANALYSIS

QUICK STATS• 1 Billion -> Downloads (By May,2012) – Highest ever

• 300 Million -> minutes played a day on a global scale

• 266 billion+ -> Levels of Angry Birds have been played

• 21,628,559-> Fans on Facebook (as on 7th Oct 2012)

• 25 Million+ -> Angry Bird plush toys and about 30 million T-shirts have been sold

• $106.3MM - 2011 revenue with 30% from Merchandising and licensing route

CAN TEMPLE RUN OUTCLASS NEW ANGRY BIRDS

Temple Run is free. However, Temple Run Brave isnt.

•Angry Birds is .99 cents. Granted, there are other free versions of Angry Birds in the App Market for I-Phone, but the levels are limited and not difficult.

Temple Run is a constant strive to get the highest score possible.

Angry Birds can be beat by the player. All levels can successfully be played and won. This makes the game boring after one has finished it

Keep running Angry Birds uses physics, in the simplest way, to achieve the goal of the game. The player must measure the angle, speed and direction of the ammo.

The Walt Disney Co. is collaborating with Imangi Studios, the

developer behind the hit Temple Run, to launch a new mobile game based on Brave, the forthcoming animated fantasy produced by Disney's Pixar unit. Brave employs the same endless action game mechanics as the original Temple Run, which challenges players to navigate a series of ancient temple walls, sheer cliffs and booby traps while collecting coins.

RISE IN COMPETITION“COLLABORATION”

Comparative Analysis

Particulars Angry Birds Temple Run

Facebook Fans ( as on 7th Oct 2010)

21,191,365 5,491,618

No. of Downloads (as on 7th Oct 2010)

1.5 Billion+ 967,688

Price 0.99 cents Free

Social Gaming Yes No

Degree of Social Networking Integration

Extremely High Low (Can share high score with friends)

Emotional Connect Very High Low

GOLDEN RUN OF TEMPLE RUN IS SHORT

• Consumers tends to be lose interest due to repetition• Imitable – Subway Surfers, Panda Run and Gravity Project