?Khillwar Case Essay

Khillwar Case1. Describe Khillwar’s customer value proposition and profit modelKhillwar’s customer value proposition is to provide product innovation through game design, engine programming, tool development, and platform porting. Khillwar’s customers are students and employees under the age of thirty who enjoy easily accessible, mobile, unique and fun games. Khillwar will make its games accessible by designing interfaces that are intuitive, easy to download and written in Chinese. Khillwar’s games are designed to be played on a mobile device and the games are fun. Since Khillwar hasn’t previously sold in China the content of its games will be new to Chinese players who desire games that are not made of stereotypical content.Khillwar’s profit model is to sell the mobile games in one of three ways.

1. Provide trial versions of the gaming software to customers and then charge a subscription fee once the trial expires.2.

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Charge a fixed fee for unlimited use of gaming services.3. Allow a free download of the game, but add options for paid upgrades that enhance gameplay for the customer.2.

What are key risks associated with business expansion into the international market for Indian firms? What are the key opportunities?Risks:Cultural and Linguistic Barriers:Khillwar is not well known in China, both in language and culture Chinese don’t want a foreign productInexperience of knowing preferences of Chinese customersIt will be difficult to collect data of preferences in China Inexperience of KhillwarPossible errors while developing Chinese versions of current games Social gaming is big in China, but Khillwar isn’t experienced in developing social games in China Payment Issues and Talent AcquisitionChina doesn’t have an efficient or reliable mobile payment platform to payfor games Difficult to recruit talent in ChinaCompetitor IssuesPiracy/CopycattingOther competitors in China are buying up Korean/Japanese games and might become leaders in the industry with a well established reputation among usersOpportunities:Mobile Phone Market GrowthChina is the leader in mobile phone usersThe mobile gaming market in China is expected to reach US$ 2.5 billion in 2014 Increased popularity in mobile and online gamingExpansion of the 3G network in ChinaLower Fees and limited competitor strengthChina has been seeing a decrease in GPRS feesMore than 90% of game developers in China are small enterprises with average talent. There is a lot of opportunity for a professional gaming company to penetrate the market.

Strong leaders of the Chinese gaming industry are not currently well establishedCustomer Habits and Preferences in Khillwar’s FavorMany students are netizens who utilize phones with mobile internet capabilities. The most popular games in China are casual games, which are easier for Khillwar to develop3. What were the managerial challenges associated with Khillwar’s expansion into the Chinese market?Where do we produce the games at?Factory LocationBuild new location in ChinaRenovate existing locationTalent acquisition issues in China (Don’t believe there is programming talent in China) Relocation issues (Have to compensate Indian workers if they haveto move to foreign country) Cultural and Linguistic barriersInability to mesh two different culturesFrustration between the two culturesLack of experience in developing existing game into ChineseLoss of morale due to communication issuesPayment problems and Competitor IssuesCustomers do not rely on credit card/debit card payments as often as the US and Indian cultures do. Tough competition from incumbents and other new entrants (It won’t be easy to beat the local competition, and achieve the same economies of scale they once enjoyed in the highly globalized market segment.)4.

What strategies should Khillwar adopt in order to gain success in China?Khillwar should employ several strategies to be successful in the Chinese market. 1. They need to find skilled English to Chinese translators to translate the game interface into the correct language.

Simple translation is far from enough. They need to understand not only the linguistic practice and preferences of Chinese gamers, but also the kind of format Chinese like to see. 2. Khillwar should make all efforts to engage native Chinese programmers , but if Khillwar cannot find any native Chinese programmers all the programmers should take courses in Chinese culture and they should directly interact with the people of China to refine what games will be popular. The programmers should also seek the advice of the native translators to further refine the ideas of games.

3. Khillwar needs to test the Mobile Pay Industry Alliance to see if it will be capable of transferring money. If not, Khillwar needs to further look into other methods of payments, possibly working a deal with the phone service provider to charge the game price onto the bill and transfer the money to Khillwar. The phone service provider would make a small profit by providing this service. 4.

Khillwar needs to heavily evaluate the stigma of foreign products. If the stigma is too negative Khillwar might try to market its games under a different brand name that is Chinese. It would also be a great strategy for Khillwar to search for partnerships with existing Chinesegaming programmers and distributors. 5.

Khillwar should create a management team (and consider a programming team) that is heavily involved in social media in order to fulfill the preferences of Chinese gamers.

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