An Investigation of Riot Games Company’s Business Strategy

Case Study; Riot Games Company

1) History and Growth

Riot Games Company was established in 2006 by entrepreneurs who had interest in games that were played competitively. Three years from its establishment, Riot Games Company came up with other ideas on how to play its new League of Legends and ways of player's appraisal. According to the history of the company, more than 100 million people take part in the online tournaments per month.

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Riot Games Company is a team-based online game that has a lucrative and bewildering world swirling around it. The company is known for selling corporate sponsorships, real-life merchandise and streaming rights for the professional sports league. During 2015, investors took control of the company to acquire slots in the league so as to build their squads. The company has been associated by big names such as Hollywood producers who have been officially made team owners. On average, a player spends 30 hours a month on the game.

It is in the history of the community to engage players since it is for them that the company continues to evolve and improve the tournaments that it holds. The Riot Games Company is located a few meters from the beach in Los Angeles, California. The company has been featured in magazines to be among the 100 best companies to work in the current year. The company was also ranked in the Fortune's top 100 companies. Ranked in terms of flexibility and millennial, it also appears in the Fortune's top 50 and 100 respectively.

The company has partnered with Omaze to raise money that is needed to support four non-profit organizations that also take part in tackling activities that are of significance to the company. The partnering with Omze has been branded as the Riot challenge since there are efforts to raise money that would be required to support the four hard-carry causes in the next year. The project is a challenge because of the unique opportunities that it is required to unlock in the coming year.

Having found four non-profit making organizations that are deeply rooted in the same ideas as those of the Riot Games Company, the entire company has invested resources in ensuring that the project becomes a success in the future. The non-profit making organizations were found by Riot in the process of scouting potential investors who work to have some sought of social impact on the community (Kushnood, 2016).

2) Strengths and Weaknesses

Strengths

The analysis of a company's strengths and weaknesses provides a competitive advantage to the online game company as the market is an indication of growth potential; thus, making competition possible. In the online game company, there are no barriers to market entry. The strength can be described as a free to play model as users do not need to have any amount of money to play. Nonetheless, the revenue that the company earns comes from minor transactions that are consistent with LOL updates and live tournaments across the globe. With free entry into the market, the company also has the best customer care services, with emails and other inquiries being responded to almost immediately upon their reception.

Among the various strengths that make Riot Games competitive across the globe is the fact that it has offices that are located all over the world. The wide spread offices give the community access to other global networks. In addition to the several offices, staff members in the specific offices have great communication with the online users and fans of LOL. The company has been using the strength of efficient offices to correct mistakes and errors that fans and online users might experience while playing the game. The high number of offices in the company is part of the high growth rate that has been of advantage to the company's operations. They enjoy the benefit of large number of users as revenues also increase.

Weaknesses

In spite of the various strengths, the company is exposed to some weaknesses that can often cause problems to its operations. Solving the problem of server issues is a great problem that may hinder the operations of the users. Due to internet congestion, the company is bound to experience server issues of latency as a large number of people tends to log in at once. Many online users tend to get stressed by such technical difficulties as some have wait for hours during peak seasons. The challenge of small business units comes in when the company does not release enough goods to sell. Lack of enough goods leads to the creation of black market by some fanatics, leading to the issue of infringement of the company's copyright.

3) External Environment

The Riot Games Company has remained ahead of its competitors due to its clear strengths. The strength of global networks that is brought about by many offices makes the company competitive; hence, earning more revenues. Despite being ahead of other similar companies, no unfair competition has been reported to the top management regarding the operations of online users. The threat of substitute products from the black market is a challenge that the company is struggling to encounter since it is related to copyright infringement issues.

4) Analysis

Despite the weaknesses that are bound to create problems in the company, the company is still in a strong competitive position. At their existing position in the market, everybody knows what Riot Games entails; thus, the existence of black market may not deteriorate its normal operations. Tournaments that Riot Games has organized have boosted its recognition. The large number of offices might cause problems in public relations with the company. A good public relations department would create good mechanisms of enhancing public relations with the company. The company can also increase its products to increase its revenue since the products would also boost the company's marketing around the world.

5) Corporate Level Strategy

The company utilizes a neutral strategy to control their place in the gaming market. Their current position in the market is known and users have learnt the type of game that is termed as LOL. Nonetheless, the company requires bringing together and connecting players and stockholders. For instance, an occasion in which Riot Games allowed players who were to participate in a tournament through a voting process was a major success in boosting the company's name and creating more awareness. The company ought to start investing in other features that other companies lack to enhance its competitiveness since the company is already known. Moreover, maintaining better relations between the staff and the players would improve the productivity of the Riot Games.

6) Business Level Strategy

In business practice, a company's will to establish a name that is trusted and can be easily reached by the public is a boost to its competitive strategy. The same strategy is applied by Riot Games as it allows fans to give their feedback on live events. The company has specialized in talking care of the needs of the consumer. For example, by voting in those who take part in tournaments, the fans speak out their mind on the events created. As part of the marketing strategy, Riot Games also offers game items to sell that do not affect the game play at all.

Many people are attracted by the fact that they do not have to pay any amount to become an online user in the game. Riot Games also uses a strategy of streaming videos on platforms that are similar to You Tube but are just for those who play the game. In such platforms, the players earn revenue through internet advertisements. The strategy is a chance for users to advertise and market their products at no costs; thus, many people are attracted to the site.

7) Implementations

Riot Games has implemented various programs since its foundation in 2006. A major development is growing from a small gaming studio to a multinational online gaming company that has created jobs for millions of people from different cultural backgrounds. The company's relation with different capital firms has enabled it to grow across the globe by expanding its offices and servers. A well structured team of management has been implemented in the company's leadership positions, with sub-teams of designers and other artists making the larger proportion of employees. The company has strived to make employees comfortable at their place of work by offering refreshment services and paid vacations.

8) Recommendations

The good marketing skills and customer care services have boosted the company's productivity since its foundation. Riot Games has used technology to create opportunities for everyone despite their regional distinctness. For the company to continue excelling in its operations there is the need to continue hiring only qualified personnel who would listen to the needs of the community to get in touch with new ideas.

References

1. Company research HW1 - Riot Games Company History Riot Games is an American.(2016).
2. Coursehero.com. Retrieved 4 December 2016, from https://www.coursehero.com/file/11058330/company-research-HW1/ Kushnood,. (2016). Join in the Riot Impact Challenge | League of Legends.
3. Na.leagueoflegends.com. Retrieved 4 December 2016, from http://na.leagueoflegends.com/en/news/community/community-programs/join-riot-impact-challenge

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