NCsoft Corporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Social Responsibility:

There were certain social and cultural issues that were linked to online games such as abuse, youth violence, online addiction, identity theft of online game users and cash trading of game items needed to be addressed. Acquiring more customers has also become and challenge and issue as well along with retaining them in front of high competition.

Extenuating international rivalry in the gaming industry:

As mentioned, the company is facing intense rivalry from all over the world. The company has estimated that the competition has become more and more intensified with the passage of time. The rivalry in the online gaming industry is no more limited to, providing games that are better than the contenders. As of now, the rivalry has reached the extent where the companies have to give more than just gaming i.e. entertainment through games. In addition to that, individuals are seeking to others options for online games such as internet.

Individuals prefer various ways of internet to play games that might include portals, shopping malls and other online communities as well. In order to deal with the current rivalry, NCsoft need to introduce a variety of games to cater diverse individuals from all over the world as providing online service by the company would not help them to endure in this competitive arena. Furthermore, the world has become a global village, and the people have less time to use the internet, thus; NCsoft needs to take other measures to retain its position in the market.

In order to make their market diversified, the company first needs to analyze its internal as well as external environment to evaluate the market condition and the most desirable market for the company. After analyzing the external market, the company needs to focus on introducing more games like Lineage and Guild Wars. Analyzing the external market will help the company to find out its competitive position in the market. Along with that, the company needs to analyze and evaluate political, economic, social and technological conditions of the country in which it decides to enter. Furthermore, there is a high need to identify the micro as well as macro-environmental conditions of the desired market or country in which the company is planning to enter.

It has been observed that the profits and margins of the company have shown a negative trend and declined in 2006 in comparison with the previous years. In order to deal with that, the company needs to make strategies that focus on cutting costs that in turn will increase the profit margins of the company. By doing this, NCsoft would be able to reduce its liabilities and debt ratio to make it financially sound.

It has been observed from the facts and figures that the company has enjoyed its leadership position in the gaming industry in Korea. Introduction of internet has changed the living style of individuals and thus, changed their gaming preferences as well. Like NCsoft, many other companies in the world have transformed its business entirely into online games business as most of the companies found a real opportunity in transforming into this business. Being a first mover in the online gaming industry, NCsoft has enjoyed being a leader in the market and high brand recognition. In order to maintain that, the company needs to find distinctive and innovative measures to maintain its name in the market. The company can go for patents their games and ideas to enjoy premium pricing and monopoly in the market. Along with that, it will become impossible for the rivals to imitate the concepts of NCsoft and this in turn will increase the company’s share in the market.

Worldwide growth of NCsoft inventions:

The trend of globalization is increasing, and the industry for games has become a major part of it. The development and productivity of the online gaming industry is highly dependent upon intense marketing on a global level. A projection has revealed that the overall share of the online gaming in the market would be more than 82% in the coming years. In addition to that, the overall gaming industry is expected to boom because of high level of diversification. The companies are now focusing on exporting these games to other parts of the world as well. Furthermore, the online gaming industry is approximately 80% absorbed by the Korean gaming market.

To cope up with the globalization trend, the company needs to find advanced technologies along with widening their product offerings to compete in the international market. The company has already tapped into the market like Taiwan, China, Japan, Europe, Thailand and the United States. To delve more into the global world, the company needs to bring efficiency in terms of adaptability. In addition, the company needs to make policies regarding payments according to the policies of the respective country..............................

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