Essential of Strategic Management

The External Environment Analysis Of Online Games Industry In China

Prepared for MGT 382 Assessment

Name: Xia Mengyao(夏萌遥)
CSU ID: 11605393
YZU ID:132413131
Major: International Business
Class: Class 1301
Date: 3/23/2016


2.Dominant Economic Characteristics1
2.1. Virtual Goods And Industry Chain2
2.2. Recent Status2

3. Driving Forces3
  3.1. A Large Number Of Internet Users3
  3.2. The Development Of Peripheral Industries4
  3.3. Mobile Games Create New Heights4

4.Key Factors Of Competitive Success5
  4.1.Technology-related KSFs6
  4.2.Marketing-related KSFs6
  4.3.Other Types Of KSFs7

5.Overall Assessment Of Industry Attractiveness7


Abstract: In recent years online game industry has developed fast in China, supply of game products and services is perfect gradually, industry chain form initially. There is complicated relationship among each link of online game chain. This paper aims to analyze the external environment so that useful strategies which benefit to China’s online game industry could be worked out.

  1. Introduction
As an important department of digital entertainment industry, online games have attracted more and more public attention. According to the international data corporation(DC)’s research, in 2013 China’s online game industry has made 891.6 billion yuan profit, which was about 32.9% increase from the same period last year. By the end of year 2014, it broke 1000 billion yuan, among them the scale of client games was over 600 billion yuan, made up of 55%. We all know that with rapid development of technology, internet has became a significant component of national economy. What’s more, online games have amazing raising speed that worth analyzing.

  2. Dominant economic characteristics
At the very beginning to analyze a company’s industry and competitive environment, dominant economic characteristics have to be identified. Considering such factors as market size and growth rate, number of rival...