Rovio Entertainment: Evaluating International Business Strategy

This report provides a comprehensive analysis of Rovio Entertainment's international business strategy, examining the company's position within the global market, the opportunities and threats it faces, and the impact of key industry trends. The report explores the influence of technological advanc...Read More

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INTERNATIONAL BUSINESS STRATEGY
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Answer 1
According to the research of Dillon (2016) it can be stated that there are four most
important mega trends in the world that are considered to be the most important aspect for the
business organisations. For example, technological advancement is going to the next level that
helps the business organisations to implement new plans and effective strategies in order to
refurbish business effectively. Content creation is also an important aspect that has a deep
impact on the organisational development effectively. It is further associated with the practice of
demographic changes. In other words, the rapid growth in the global population has created a
great opportunity for the business organisation to flourish their business strategically and
effectively. Furthermore, the global connectivity is also considered to have a great impact on the
global business orientation as business has become smoother and accurate that the customers and
the business organisations also feel a better place to live with. Based on this understanding, it can
be stated that the Rovio Entertainment also get affected by this major trend in the international
business. The purpose of this discussion is to highlight the strategic position of Rovio
Entertainment in the light of evaluating the opportunity and threats that the organisation will be
faced in order to get strategic advantage.
The technological advancement is one of the major concern that every organisation has
to keep on check. It means every organisation is looking for new technologies that will provide
them strategic position in the market. Both the in-house and external activities of an organisation
are influenced by the advent of new technological development. In this regard, Anthes et al.
(2016) opined that the presence of advance technology creates more efficacy into the
organisational communication. It is important for an organisation to ensure the use of technology
and get positive results. Freire et al. (2016) asserted that the new technological implementation

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will foster effective result of the organisation to enhance the organisational proficiency. On the
other hand, meeting the needs of the customers with time efficient mechanism is also contributed
a lot in path of aiming towards sustainable business practice. It is associated with the practice of
targeting and segmenting the customers effectively. Based on the research of Cote (2017) it can
be derived that the role of the organisations in segmenting customers will help the get effective
results in identifying the different behaviours of the customers and bolster the customer
orientation of an organisation. On the basis of this perception, it can be stated that the most
important part for Rovio Entertainment is to set its target market at first. it requires in-depth
analysis on the target customers and figure out the essentials of the customers that the company
can exploit effectively. Apart from this, keeping a better internal network will also help Rovio to
commence professional activities and generate creative ideas that will be the most powerful tool
for the development of the organisation.
In addition to this, the content creation is identified as the newest part in the rapid
business expansion. For instance, the content or the storyline of a product is more appreciable to
the customers rather than its quality nowadays. In the research of Hamari et al. (2017) it can be
seen that the content creation practice is highly resembled with the paradigm of business
sustainability where the organisation is responsible to focus on the making of the product and
attract more customer to buy the story without a second thought. Henceforth, for Rovio
Entertainment also it is essential to make something different and has relevance in the present
context. Gaming is a platform for the organisation where it can put more innovation and
creativity so that it will be helpful to maximise the customers. Rovio has an innovative and talent
workforce that can easily develop unique games that the not only the youths but the adults are

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also loved to play. Therefore, the organisation has to set up a thorough analysis on the content of
the new games and maximise the users at a rapid pace.
Besides this, changes in the demographic perception is also played a pivotal role in
order to attract the business organisations rapidly. It is associated with the notion that the
demography is related to the community so that the community engagement is always defined as
the best practice for the modern business organisations. Based on the research of Bidault et al.
(2018) it can be stated that the community engagement practice fosters a solid base of potential
customers for the big business organisations. There are several methods that can bring the local
communities into the business fold of Rovio Entertainment. The organisation tries to diversify
their products but failed to do so due to the lack of engagement in the local communities.
Moreover, sticking with the angry birds patent will never provide the organisation long term
profitability. Rather changing the nature of the product and introduce new items is always
seemed to be an important aspect for the organisation to deal with the competitive market
(García-Posada and Mora-Sanguinetti 2015). It is a challenge for Rovio Entertainment to
maximise its fan base only with the help of the products. Therefore, changing the dynamics of
the company with the demographic trends will facilitate effective business development for
Rovio Entertainment.
Finally, in the light of the global connectivity, it can be argued that the advent of
globalisation creates intensified the competition among different organisation and all the
companies are tried to establish its market effectively. In this regard, Mudambi et al. (2017)
articulated that the global connectivity is the most possible choice for any company to go for.
The unparalleled business strategies of the global organisation initiate more effective means of
development through connecting the overseas market effectively. Therefore, it is also important

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for Rovio Entertainment to expand its market with some unique and attractive products that the
customers are pursuing. It will be possible by installing cutting edge technologies and the
innovative ideas that can bring more effectiveness into the business of Rovio Entertainment.
Answer 2
The research of Rong et al. (2015) asserted that the ecosystem in business connotes the
organisational network in terms of the suppliers, distributors, customers, competitors and the
government agencies. Those elements are intricately aligned with the development of an
organisation. In this context, the Japanese gaming industry is considered to be the third largest
gaming sector across the world. The Japanese market is highly concentrated by the technological
advancement. Therefore, for the gaming industries in japan the most important part is to install
new technologies. Moreover, focusing on the talent management concept, the Japanese gaming
companies are highly motivated to retain its employees for long term development. On the other
hand, the suppliers in Finland the suppliers have moderate level of powers. There are plenty of
suppliers of new technologies and human resources that contributed to the development of the
Finish gaming sector one of the lucrative and leading market all over the world.
Distributors are also important aspect for the business companies. As per the research of
Majava et al. (2016) it can be stated that for the big business organisations the role of the
distributors is highly important as they play significant part in delivering the products into the
stores. In this regard, Han, Suh and Shin (2016) figured out the distribution practice in the Japan
is not so smooth. There are not some much distributing companies that can help the gaming
companies to distribute the products to the market. In fact, most of the gaming companies in
japan are considered promoting their gaming products alone without having any back up from

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the distributors. The limited number of the distributors creates more power for the distributors to
influence the market effectively. As a result of that the gaming companies in Japan are following
high expenses in distribution of products that automatically increases the prices of the games as
well. On the other hand, in Finland, there is a separate distribution sector for the gaming
companies that only delivers gaming products to the stores. In fact, the relationship between the
gaming companies and the distributors is also based on mutual participation so that it creates a
cost effective measure for the Finish game developers and provide them strategic advantage in
expanding business effectively.
One of the major aspect of a booming sector is that there will be high competition in the
market. Hanna (2016) opined that the more the industry will flourish the more the competition
increases. Based on this perception it can be stated that the Japanese gaming market is highly
competitive and business rivalry. For instance, big gaming giants like Nintendo and Bandai
Namco has a long history of corporate rivalry. However, both the companies are facing severe
problem in continuing their international business orientation. Huge pressure in the international
market with lots of new players with their creative skills and marketing techniques contributed a
lot of problem in the Japanese market (Basole et al. 2016). On the contrary, the Finish gaming
market is still flourishing with a range of current gaming giants. Apart from Rovio there are
Supercell, the creator of Clash of Clans, Remedy Entertainment who developed epic action
games like Max Payne and Fingesoft that developed one of the top ranked android games like
Hill Climb Racing are also existed in the market. Therefore, it can be stated that the Finish
gaming industry is more competitive in compare to the existing Japanese gaming sector. There
are plenty of factors that are contributed to the development of a hospitable and friendly
atmosphere in the Finish gaming industry despite of having series of rival companies.

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In addition to this, the most important part is the customers. According to the research of
Guittard, Schenk and Burger-Helmchen (2015) it can be stated that the role of the customers
ultimately decides the growth of the organisation and the development in a healthy manner.
Based on this understanding, it can be stated that in the Japanese market huge customer base is
considered to be one of the crucial aspect to understand the growth of the market. As per the
report of Poon and Chan (2017) it was confirmed that in 2017 the Japanese gaming industry
collected a total revenue of 12.5 billion dollars which is huge and optimistic. There are more than
67 million player in Japan who spend $19.2 billion in 2018. It creates a huge opportunity for the
Japanese gaming sector to flourish outstandingly. The report also confirmed that 26% of the
Japanese population are used online gaming content whereas demographically 41% of men and
32% of women reportedly play mobile games (Jiow et al. 2018). This is a milestone for the
gaming industry of Japan. On the other hand, the Finish gaming industry is also expand its
market effectively. The article of Asplund et al. (2019) reported that at the end of the financial
year of 2017, the turnover surpassed $20 billion which is an epic milestone for the business
organisations. Moreover, in recent times the gaming industry in Finland has employed over 3000
employees (Laine 2017). Therefore, the promising scope for the Finish gaming industry also
attracts a number of new entrepreneurs.
From this perspective, it can be stated that both the Japanese and the Finish gaming
industry are creating huge opportunities for the business organisations in order to deal with the
practice of establishing great scope for development. The comparison between the two countries
can be differentiated in terms of the fan base and the expertise. As per the Japanese gaming
sector it has a legacy and enough experience in the gaming world. Therefore, the organisations
also take advantage of that. On the other hand, Finland provides a huge number of opportunities

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for the new gaming companies. In fact, the new development and international appraisal for the
Finish gaming industry grab the attention of the existing game developers. In this regard, it can
be stated that for Rovio Entertainment, it will be effective to perform in the Finish market
because of the growing exposure of the gaming industry in Finland. However, there are some
concern for the organisation in terms of high competition in the market and the continuous
intervention of the international gaming giants. However, the use of advanced technology.
Focusing on talent management and putting emphasis on relationship with the suppliers and
distributors will provide strategic advantage for Rovio Entertainment in the Finish gaming
market.

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