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Group10 Case6

The document discusses Niantic, Inc., the developer of Pokémon Go. It provides background on Niantic's previous apps Field Trip and Ingress. Pokémon Go was hugely successful initially, generating over $250 million in its first two weeks. However, its popularity began to drop quickly. The document discusses the game's customers, social and technological context, competitors, and collaborators. It presents the decision problem of maintaining 30 million active users and evaluates the alternatives of collaborating with third parties or raising additional funds. It recommends raising funds to improve the user experience, hire staff, and offer discounted in-app purchases to attract players and handle revenue reductions from third-party apps.

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25 views

Group10 Case6

The document discusses Niantic, Inc., the developer of Pokémon Go. It provides background on Niantic's previous apps Field Trip and Ingress. Pokémon Go was hugely successful initially, generating over $250 million in its first two weeks. However, its popularity began to drop quickly. The document discusses the game's customers, social and technological context, competitors, and collaborators. It presents the decision problem of maintaining 30 million active users and evaluates the alternatives of collaborating with third parties or raising additional funds. It recommends raising funds to improve the user experience, hire staff, and offer discounted in-app purchases to attract players and handle revenue reductions from third-party apps.

Uploaded by

prerit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Group 10

5C Framework
Company
• Niantic, Inc. - Founded in 2011 as a regular computing
division within Google Inc.
• Niantic’s 1st product was a mobile app called Field Trip
which could be used to view info about nearby landmarks.
• In 2013, Niantic launched a gaming app called Ingress
which worked on AR – huge success.

POKEMON GO:
• Best selling mobile game of all time – used geographic
data from Field Trip and Ingress
• Not so successful initially – popularity began to drop as
fast as it had risen
• First 2 weeks, > $250Mil revenue
• Fastest to surpass$500Mil revenue (60 days)
• In-game purchases/ in-app payments were the main
revenue stream
• Peak in second half of July 2016 with 27Mil downloads
per day (Exhibit 4)

Customer
• Millennials who grew up playing video games
around and watching the original Pokémon.
5C Framework
Context
• Social – Distracted drivers caused accidents, players
flocked graveyards and other religious places
• Technological – AR environment (smart watch, glasses) ;
3rd party ‘cheating’ apps increased load on servers.
• Legal – lawsuits for damage done by multitudes of
players aggregating at public places to catch Pokémons.
• Environmental – Geolocation and mapping led to
increased server utilization which would lead to
increased carbon footprints

Competitors
• Candy Crush Saga • City Spirits Go (by
• Puzzle and Dragons Quanzhou) in China
• Clash of Clans (by • Angry Birds
Supercell) • Farmville
• Exhibit 6 on the right

Collaborators
• Facebook, Snapchat, Instagram, Flickr
• Freelance drivers
• Investors (Alsop Louie Partners and others
given in Exhibit 2)
• Exhibit 6 on the right
To decide on a strategy to maintain the number of
Decision active users at 30 million approximately.
problem

1. Collaborating with third party developers Alternatives


2. Raising another round of funding for better user
experience
Collaboration Evaluation of Alternatives Raising Funds

High High

Increase in active users

High High

Revenue

High
Low

Risk to future business

High Low

Issues in Integration

Medium High
User Experience

Medium to High High

Profit Sharing
High Low
Medium High

Innovation
High Low
Low High
Surety for Profit potential
AR Ecosystem
Recommended action - Raising another
round of funding for better user experience

• Raising funds to add new features for improved user experience


• Hiring talented workforce to fix the existing challenges, add the
awaited features and work on AR gaming ecosystem
• Offering Poké coins at discounted prices to attract players towards in-
app purchases
Action plan to handle negatives arising out of
non selection of other alternative
• PROBLEM - Immediate affect on user base – users will keep preferring third party
‘cheat’ apps which causes revenue reduction as they are bored with the existing
game features.
• SOLUTION - Can offer discounts on Poké coins which would increase revenue
due to increased volume.

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