Two Strategies in the Freemium Industry:

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Other Title
  • ネットワーク効果が働くフリーミアムでの二つの企業戦略:モバイルゲームを題材に
  • ネットワーク コウカ ガ ハタラク フリーミアム デ ノ フタツ ノ キギョウ センリャク : モバイルゲーム オ ダイザイ ニ
  • A Case Study of Mobile Games

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<p>In this study, we demonstrate that two strategies exist in the mobile game industry: dispersion strategy and concentration strategy. In the former case, firms supply many differentiated products, whereas in the latter case, firms supply only a few products. The concentration strategy performs well in terms of the level and stability of revenues; the dispersion strategy, in contrast, depends on only a few products regardless of revenues.<br>Although the dispersion strategy is more common in the entertainment industry for the purpose of stabilizing revenues, the concentration strategy could be a possible alternative in the mobile game industry. The result of this study can be interpreted as characteristics of freemium, where network externality works well.</p>

Journal

  • Organizational Science

    Organizational Science 52 (3), 47-56, 2019-03-20

    The Academic Association for Organizational Science

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