The failure of Zynga to actually use the money for marketing was also something that hurt them. Having their investment worth so much and then using it to kill two birds with one stone did not help in any way.
At the time of the incident, people were comparing the situation to the marketing plan of a psychological game called “Farmville”. It was due to this comparison that the issue of future bankruptcies for the company was raised.
The biggest problem with social networks is that you cannot say the end of the social network is near. As such, we should not be worried about what will happen after Zynga shuts down its operations.
This means that in Zynga’s case study analysis, it is actually worth investing if you are a skeptic because you have little or no risk at all. While there will be potential market growth, the potential market growth is in the future.
The Zynga case study analysis was actually aimed at showing the benefits of investing in a company’s stocks. A lot of people do not know that the founders of Facebook were able to invest their money and even part of their properties because they had to create a security or a stock in order to buy the company.
The earnings are not in actual numbers, but the earnings through the ads can be easily measured. The key point here is that a lot of people use Google to see the earnings, even though the company generates a lot of money through AdSense.
In the case study analysis, Zynga was written by an insider of the company, specifically the same source that wrote the case study for Facebook. The insider was able to see the actual earnings and helped the team in terms of understanding the real value of the company.
The company in the case study analysis was actually a company that can sustain a large amount of competition. The core of the Zynga case study was designed to show the reader that there is a large amount of growth potential in the online gaming business.
The case study analysis was able to explain why Zynga was not able to grow as big as it needed to be, mainly because it was over simplifying the game play. There was no need to make people work harder because a lot of things can be automated.
In the Zynga case study analysis, it was focused on showing the different outcomes of the different game styles, showing how certain players could lose interest in the game and how the same type of player can still be a profitable investment. The business model that Zynga was aiming for, was actually closer to the plan of Facebook than a traditional business.