NCsoft Corporation Harvard Case Solution & Analysis

Upholding leadership position in the industry:

For a longer period, the company has successfully maintained its leadership position in the market. During this passage of time, the company has introduced various new games out of which, the famous ones are Lineage I and II. The company has also released other multiplayer games as well like Blade and Sword. The company has successfully established its strong customer base through being diversified in the market. For years, the company has magnificently maintained its leadership position in the market but now, the industry is changing and the consumer preferences as well. In order to deal with this, NCsoft needs to enhance the level and quality of the products it offer and to gain an edge in comparison with its competitors globally.

In order to sustain and enhance its leadership position in the market, the company can go for acquiring niche markets in the world and this can be done through emphasizing more on the primary competencies and exploit them in a best way. As of now, NCsoft Corporation has accomplished enormous achievement in the area of digital content but further growth is required through doing combination of wireless and wired networks. In this way, NCsoft would be able to become an online publishing and development company globally. The primary goal and objective of the company has always been o providing not just games but a pack of entertainment and fun to its customers in the form of games. To increase its share in the market, NCsoft needs to develop more online games in the market. The predictions have been made about uncountable potential in the online gaming market; thus, the company can exploit this opportunity by making expansion in the niche market.

One thing that a management needs to keep in their mind is to prevent cannibalization. NCsoft needs to make strategies in a way that does not affect its other successful products. For example, NCsoft needs to position its products in a unique way compared to its previous products. In addition to this, positioning can be done in a way that exploits best the benefits of the products. The case has shown an emergence of new market segment that is of mature individuals above 3o age groups. Casual and other online games have become increasingly popular in the age group; thus; the company can target this age group to increase its market share that in turn will increase the brand recognition of NCsoft.

Alleviating worldwide competition:

As mentioned in the case, the company is facing competition from several companies and industries directly and indirectly. The company is focusing more towards countering this competition and knows that it will be intensified with the passage of time. In addition to this, the company needs to get itself prepared for the rivalry with other indirect online companies like communities, Portals and shopping malls. Relying solely on online service will not help NCsoft to survive in a competitive market.

There are different forms of online games in the market. These forms include all the games and activities that offer pleasure and entertainment to the users. With increasing competition, the company needs to develop games that give a true value to the users. In addition to this, the company can go for the launch of other games like Lineage I and II and Guild Wars. The overall competition faced by the company along with its external analysis can be best evaluated through porter’s five forces model.

By analyzing competition and market, the company would be able to understand the markets in which NCsoft can make its entrance. In addition to this, the management of the company also needs to analyze the macro, as well as a micro-environment of the company. Furthermore, the company needs to take some measure to decrease the overall cost because the net profits of the company has been declining as well by half percentage. Reducing cost would also help the company to make reductions in its debts as well. Furthermore, NCsoft can also make an addition of integrating features that are more customer oriented to increase selling.

The company is known to be a leader in online and PC gaming and thus ruled the industry for years. But with the increasing use of internet, most of the IT and gaming companies are now transforming itself to online gaming and tries to be a first mover in the industry. Most of the companies are seeking for exploiting market potential in online gaming industry. The company can further bring innovation in terms of products and formulate effective strategies to beat its competitors and increasing its share in the market. In addition to this, NCsoft needs to analyze and evaluate its competitor’s products as well.

Expansion in products through diversification:

The operations of the company begun in 1977 and from the past three decades, the major focus of the company is continuously on making new products and updating the existing ones. The main goal of NCsoft is not just about investing money and getting revenue in return, but; the goal is to analyze and identify new opportunities in terms of new games and to recognize the areas that are not up to the company’s standards..............................

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