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Case study: Rovio Entertainment

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Case Overview


Ravio entertainment ltd. is the famous gaming company, the most famous game provided by the company is the Angry Birds game for smartphone users. In this game, colorful games are catapulted at pigs who are stealing eggs. The company is based is situated in Finland and the key employees contributing towards the success of the company are Mikael Hed, former CEO currently being the chairman of the company ‘Ravio animation studio'. The company has become a world's largest entertainer, in 2010 Angry birds became the most selling Application software in Apple's App Store. The company was established in 2003.

The new Disney: The big entertainment brands Disney and Mickey mouse was working successfully and Ravio saw the potential to compete them and achieve success like those brands. To perform intense marketing of their game, the company contacted and sign a partnership contract with American toy manufacturers and T-shirt shops in the US to sell toys and T-shirts having a logo of angry birds to attract and influence the market. Ravio has also launched its first Angry Birds theme park in a replica of Disneyland. The theme park was established in 2012 in Finland and then in China in 2013. Thus, Ravio was coming out as an entertainment powerhouse in physical existence and through digital media. Further to create more impact, the company has contacted Samsung to launch a special ‘Ravio channel' on Samsung TV's to download games and play it on TV.

Stalled growth: The company was addressing great success in the number of employees of the company got increased from 40 to 800 in the time span of two years from 2010 to 2012. The revenue of the company was increased from 6.5m euros to 152 million euros, but in 2013, the revenue has fallen to 73% showing 36.5m euros in revenue. The company has to lay off 110 employees due to the high cost and less revenue scenario. The company faced high criticism in this time period. To recover the market, Ravio has launched two more extensions of the game named as Star Wars crossovers and Angry bird for girls named as Angry Birds Stella. They were providing access to the time by free downloading to increase the popularity of the company.  in 2015 the company shifted to celebrity endorsement and launch a new game ‘Love Rocks'.

Restructuring: The company started its restructuring, the personnel, and licensing department has been created to support functions and provide facilities to other departments of the company. many changes have been made in the management of the company, new CEO was appointed following Mikael Hed but she left the chair in 16 months of joining. Finally, the company decides to go back to entrepreneurial roots.

Future plans: Company has many more areas to explore to maintain the impact of their theme in the market. In 2016 Company started collecting funds for the new movie of angry birds and contacted Sony pictures to design animations of the movie. The production cost of the movie was 75m euros and the marketing budget was 175m euros. The company states that they had lost the focus by focusing on different areas, but still they have the capability and hope to be top entertainer of the world. They are focusing on improving current conditions and market share of the company.

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