A Study On Development Strategy Re-positioning And Safeguard Measures Of Giant Network Company

Giant Network Technology Co.,Ltd.is a Chinese game company founded in 2004.With its innovation of gameplay and charging mode,as well as its advanced technology on the server architecture,“Journey”,the very first game created by this company had become a leading domestic network game.This famous game helped Giant Network become the industry leader at that time,and it continues to bring handsome profit to the company up until now.But with the rapid development of game industry and the big change of the external environment,Giant Network has encountered some potential problems that threaten its market status.This paper takes the development strategy of Giant Network as the study target.Firstly,it illuminated that Giant Network’s current corporate-level strategy is unrelated-diversification strategy.While analyzed the company’s performance for recent years based on its financial data,the results brought doubts that the current strategy could not be the right choice for the company.To seek a better strategy for Giant Network,this paper dug deep into all the environments and factors thoroughly.First of all,it used PEST method to analyze the external macro-environment.Then it made a thorough analysis of the business circumstances of game industry,including present industrial competition and other noteworthy trends about game industry.To demonstrate those noteworthy trends about the industry,this paper mainly revealed the current trend that self-developed game products maintain a benign growth both at home and abroad,the fact that PC game & page game’s market share continues to shrink while mobile game continues to expand,and the new trend of live broadcast and e-sports operation in the industry.To reveal the company’s internal circumstances,it demonstrates the resources and capabilities owned by Giant Network in every details.During the demonstration,to show Giant Network’s financial ability clearly,a game company with reference value is chose for contrast.After the above analysis,this paper summed up Giant Network’s advantages and disadvantages.By using the SWOT model,based on opportunities and threats,combining with advantages and disadvantages,this paper drew several conclusions and suggestions that how the company can embrace the opportunities and avoid the threats.Among these suggestions there were two possible corporate-level strategies to Giant Network.Among these two strategies,after analyzed other companies in the game industry,as well as how the company’s advantages fit better with the given strategies,this paper discovered that the better corporate-level strategy for Giant Network should be Related-diversification strategy,and the operation-layer strategy should be adhering to good quality and fine operation.To executing these specific strategy suggestions,it requires stronger management ability,strengthening financial support and legal risk control,an independent IP department,better technologic competitiveness,optimization of marketing activities,a better human resources system and an efficient communication system.Although this paper focuses its research on Giant Network,its analysis of the current exterior environment,the dissection of game industry’s present competitive status,as well as the research and analysis methods can provide inspiration and reference for other game companies to a certain degree.