Corporate Strategy Disney Case 2009

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This graph shows the global sale of game software ($billions). It can be seen that global sale of online mobile game will significantly increase over next 8 years. The reason is mobile games offer new opportunities to include wider demographics, ubiquity, personalization and social and context awareness. Moreover, in 2008, smart phone as apple launched to the market with higher technology. It has to use application to download. Thus, it is a new concept that has given developers uses this opportunity to develop mobile game.

The number of mobile wireless data subscribers and the mobile wireless data penetration rates

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(Source: transition.fcc.gov)

Analysts at Credit Suisse have also estimated the number of mobile wireless data subscribers and the mobile wireless data penetration rates. According to these estimates, there were 180 million mobile data subscribers at the end of 2009, which translates into a penetration rate of 63 percent. The number of mobile data subscribers has increased 11 percent from 160 million at the end of 2008, and 22 percent from 140 million at the end of 2007.

Mobile internet users in the United States

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(Source: statista)

This statistic shows the number of mobile internet users in the United States since 2009 with forecast until 2014. Mobile device ownership in the United States has seen a steady growth, mostly due to the wide availability of mobile internet access and the increase in 3G capability for those who use mobile phones. This trend is also correlated to the fact that mobile devices provide consumers with varied activities important to them. From 2009 to 2010, the mobile user in United States increase by 27.6 million. Smartphones are expected to continue being the main mobile device for internet access.

The number of mobile app downloads worldwide

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(Source: Onlinemarketing)

A garter study on the number of mobile app downloads since 2009 shows how the industry has growth over the years. Since 2009 mobile app downloads has almost grown by geometric progression. In 2009, worldwide mobile app downloads amounted to approximately 2.52 billion and are expected to reach 268.69 billion in 2017

Internet Growth

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This statistic shows information on the internet growth rate from 2000-2008 and the expected internet growth from 2009 to 2019.

Easier access to computers, the modernization of countries around the world and an increased utilization of smartphones has given people the opportunity to use the internet more frequently and with more convenience so more and more people all over the world are beginning to use the internet.

According to graph, from 2000 to 2001, the growth rate sharply increased from 21.95% to 34%. Then, it dramatically decreased from 16.42% in 2003. After that, the trend had been fluctuated until 2008 at the rate 13.87%. In 2009, the rate of growth is expected to be increased from 12.18% to 14.86% in 2010. After that, the trend has been fluctuated overtime; the number of internet users is expected to be increasing at the decreasing rate, it will be decrease from 10.45% in 2011 to 10.15% in 2014, following by the decreasing trend in year 2015 through year 2019.

Mobile App Download Growth

Apple: More Than 65,000 Apps; Over 100,000 Developers

According to Apple Press Info, from 2008 to 2009, customers have downloaded more than 1.5 billion applications from the largest application store in the world; Apple’s App Store. The trend of App Store is growing as there are more than 65,000 apps and more than 100,000 developers in the iPhone Developer Program. With the increasing number of downloads and number of apps that are available to consumers in 77 countries, it allows developers to reach ten of millions iPhone and iPod touch users around the world.

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This statistic shows information on the expected app downloads growth worldwide from 2009 to 2017.

According to the graph, in 2009, worldwide mobile app downloads amounted is expected to be approximately 2.52 billion and is expected to reach 268.69 billion in 2017. The growth rate will be slightly increased from 68% in 2009 to 78.97% in 2010. Then, it expected to be dramatically increased to 380.04% in 2011 and sharply decreased to 195.57% and 59.51% in 2012 and 2013 respectively. After that, the growth rate will be decline continuously from 35.99% in 2014 to 19.52% in 2017 and is expected to continue declining in the year 2018 and 2019. Overall, the number of mobile app downloads are expected to increase continuously but at the lower rate. As a result, from the forecast the growth rate will be decreasing overtime.

Porter 5’s forces

Threat of new entrants- High

The segment’s barriers to entry are low, with minimal government regulation and manageable costs. Programing mobile games does not require expensive or hard-to-find materials’ more critical is the intellectual capacity to develop a new or innovative concept and bring it to life through effective programming and coding. New entrants also can take advantage of copy and development, as it’s easy to learn and adjust from available mobile game in the market due to short development time. There’s easy distribution and limited require development efforts, it leads to low entry to barrier. When an industry is growing rapidly, firms are able to increase profits because of the expanding industry; this will attract many more new entrants to enter into this app-based game market, leading to high threat of new entrants.

Threat of internal rivalry- Low

Mobile applications can be divided into different types depends on the persons’ usage. The number of firms in smartphone game industry is not large even though there is a global competition. The main cell phone game producers include EA Games, Gameloft, Ubisoft, Bandai Namco, Zynga, and Infospace. Rivalry intensifies among these firms because many employ new ideas to appeal to different segments and boost market