International Business Strategy – Case Study of Rovio Entertainment

International Business Strategy –
Case Study of Rovio
Entertainment
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1 SECTION A
1. The aspect of global megatrends in the organisational scenario of business in the near
future. It seems that the industry as a whole is being required to abide by the changes that
is being brought upon by the external factors. It would apparently provide a suitable
business scope for Rovio Entertainment Ltd to encase the market taking relevance of the
global trends (Prahalad & Hamel, 1990). It is because the global trends are supposed to
implicate the economic changes keeping pace with the technological and socio-cultural
changes to survive the competitive market. Accordingly the aspects of technology,
globalisation, demography and scalability would be considered by Rovio to thrive in the
market sustainably. The global megatrends prevalent in the current scenario are as
follows:
Technology – 21st century has been the era of innovation and advancement in
information technology (IT) led to a new wave of development in the industry facilitating
the consumers (McGahan, 2014). Rovio took relevance of the technological advancement
prevalent in the global map by introducing the smartphone games of Angry Birds. The
company struck a deal with the Apple iPhone to promote the mobile games and reach out
to a wide segment of iPhone users across the world. The digital innovations favouring
Rovio would be quite suitable to take relevance of the impending IT revolution in the
business scenario. To facilitate the technological trend, the elements of Internet of Things
(IoT), artificial intelligence (AI), robotics and virtual reality could be used by Rovio to
develop its creation of the angry Birds game (Teece, 2010). The technological aspect for
Rovio would be quite important for it being a technology oriented organisation and with a
developed technology hosting the Angry Birds game, it would be able to reach out to a
larger segment of the targeted customers. It is astonishing to see that Rovio has strived to
take steps in that direction by striking an accord with Apple to have the users of iPhone
exclusive access to the game.
Globalisation – The phenomenon of globalisation could be understood when a business
organisation belonging to a particular country say Rovio being based in Finland strives to
pursue international business ambition by spreading to other countries like US and China.
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So globalisation has been an active dominance of the bigger businesses to spread its
business expertise in the markets having opportunities say the emerging economies. The
aspect of trade liberalisation opened doors of the emerging markets facilitating
competition, developing supply chains and offering a competitive price to the customers
(Saka- Helmhout, et al., 2016). Rovio taking cue of the globalisation strategy partnered
with the American toy manufacturer, Toy & Novelty to introduce Angry Birds
merchandise for a broader segment say the younger people and the children. The
company also came up with a theme park in China in 2013 attracting attention of the
children and their parents and strive to come up with more such facilities globally
(Chapman & Whittington, 2014). Through the globalisation strategy Rovio would be
susceptible to a healthy competitive scenario in the global market along with a developed
supply chain system and offering the services at a reasonable price.
Demographic – The global trends has been towards states having a higher birth rate and
so availing widespread economic scope to be exploited by the global corporations
addressing the needs of most of the younger consumers (Stiglitz, 2018). Accordingly
Rovio has delivered its attention on the populated markets of China and US to extract the
most of benefits encasing the younger population over there. It is because these countries
would have the millennial workforce paving an effective platform for innovation.
Contrarily those countries like the European nations having an aging population would be
more favourable to pursue the healthcare segment. Accordingly Rovio has come up with
Angry Bird theme park in 2013 to draw the attention of the Chinese children and their
parents imitating the Disney theme park (Spaniol & Rowland, 2018). Again in US, the 3rd
populated country in the world it partnered with a pioneer toy maker to promote the
Angry Bird merchandises for the children loving the game most of them are children. So
it would be quite suitable for the businesses like Rovio to have their due attention on the
likes of the American and Asian markets having most of its population in the younger age
bracket.
Scalability – Scalability is a significant element for the businesses that would be suitable
to cater the requisite services to the customers. In the upcoming era of 20 years, the
emerging states of China, Brazil, India and the Gulf countries are supposed to be the
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