Introduction
Glu Mobile Inc. is a worldwide producer and publisher of free-to-play online mobile games that allow people to mingle. The advent of new technologies, such as artificial intelligence and the virtual world, profoundly affects the company’s ability to generate income. This paper discusses how advanced technologies like AI and the metaverse are influencing Glu Mobile’s value-generating process. This essay will also assess Glu Mobile’s value-generation process and how the company is leveraging new technologies.
Company
Glu Mobile Inc. is a publicly traded company that creates and publishes F2P mobile games worldwide. Glu Mobile is a game development and publishing company that has been around since 2001 in San Francisco, California. The business makes money from in-game purchases and advertisements. Games like Deer Hunter, Design Home, and Racing Rivals can be found in Glu Mobile’s library (Bowman & Pearson,2019). The company’s games can be downloaded on several systems and software distribution channels. Success in action, sports, racing, lifestyle, and casual game categories contribute to the company’s 500 million downloads globally. The gaming firm also has outposts in foreign hotspots like Canada, India, China, and Russia and domestic hotspots like Portland, Oregon, Long Beach, and San Mateo, California. Glu Mobile’s top mobile games have been recognized by numerous organizations, such as TechCrunch and the Academy of Interactive and Visual Arts (AIAS). Multi-Genre Products, Social, Racing, Role-Playing, Simulation, Sports, and More, Are All Available From This Global Tech Giant. If consumers see the letter ‘g’ in a logo or go to www.glu.com, they will be directed to high-quality, mobile-device-specific entertainment. As Sorrent, Glu Mobile began life in 2001. Glu Mobile was formed after Sorrent and Macrospace combined in 2004.
Context
By 2025, the mobile gaming market is expected to be worth an astounding $150 billion, up from an anticipated $77 billion in 2020. More than 80% of the industry’s revenue comes from paid content like premium games and in-app purchases (Petre et al., 2019). A small number of businesses, including Tencent, Activision Blizzard, NetEase, Electronic Arts, Zynga, Niantic, Gameloft, King, and Kabam, control the vast majority of the mobile gaming market despite the industry’s fierce competition. In terms of Comparably’s Gender Score, Glu Mobile is in third place (Coe & Yang, (2022). CEO rankings, product and service offerings, net promoter score, pricing, customer service, overall culture score, employee net promoter score, gender and diversity scores, and other metrics are routinely compared to those of competitors.
The mobile gaming market is really worldwide, with the United States and Europe accounting for the lion’s share of revenue, followed by Asia-Pacific and the rest of the world. Glu’s primary goal has always been to provide its gamers with Growth Games that they will like playing (Hyrynsalmi et al., 2020). The corporation has established the necessary internal infrastructure, culture, and atmosphere and can now speed up its strategy by purchasing games and teams. The corporation has recently opened a new studio in Orlando, Florida, among other locations. The studios are developing other Sports & Outdoors titles for the company (Hyrynsalmi et al., 2020). These methods will lay the groundwork for expanding the Tap Sports Baseball brand and developing additional sports and outdoor experiences, such as Deer Hunter World, with similar fun and engaging core mechanics and deep elder games designed for long-term global enjoyment.
When it comes to demographics, millennials are the driving force behind the mobile gaming business. Hence it is because millennials are the most tech-proficient and avid mobile gamers of any generation. The employees at Glu Mobile represent a wide range of demographics. Women comprise 16.2% of the workforce, and people of color constitute 42.0%. Despite its diverse ethnic makeup, Glu Mobile is shockingly homogeneous when it comes to political ideology. The majority of its staff are Democrats (87.0%), which is significantly higher than the national average (Soni et al., 2020). Employees at Glu Mobile have a short average stay despite working alongside people with similar political views. On average, employees remain with a company for 2.8 years. Glu Mobile offers a competitive salary for its industry and location, with an average annual salary of $99,820. Zynga pays $110,645, KIXEYE pays $105,494, and Daybreak Game pays $101,117. Therefore, there are other highest-paying competitors.
Several elements contribute to the growth of the mobile gaming business, and each one impacts the overall market dynamics. The capacity to make games that are enjoyable for a wide range of players, to regularly add new content and features to keep players interested, and to make money via in-game sales are all examples of this (Hovestädt, 2022). Success in mobile gaming also relies on a developer’s ability to use analytics to gain insight into their players’ habits and interests so they can better personalize their marketing campaigns. The company claims that this year was spent reflecting on and recovering from past mistakes while laying the groundwork for future growth by strategically adding additional studios, titles, and talent (McCauley et al., 2020). Since then, they have released Disney Sorcerer’s Arena worldwide and plan to release more games like Deer Hunter World in the following years. The firm is confident that any new game they release has the potential to become a Growth Game. In the years to come, their already successful Growth Games will experience even more expansion and player immersion.
The firm wishes to express its appreciation to its shareholders for providing unwavering support as it works toward becoming one of the world’s most successful creators of mobile games. In order to be successful in the mobile gaming industry, game creators need to be able to think creatively and produce games that a vast number of people will enjoy. In-app purchases and a general understanding of players’ behaviors are also essential to developing a successful business model in the mobile gaming sector (Tao et al., 2023). The company wants to continue creating and publishing a portfolio of mobile games to appeal to a wide variety of users of mobile devices such as smartphones and tablets. In addition, it is resolved to maintain its leadership position in the free-to-play action, celebrity, sports, and simulation genres of mobile gaming, and it intends to concentrate on producing games in these genres in the foreseeable future. The firm intends to keep creating games based on its IP, such as its core franchises and its original branded titles, like Racing Rivals and Tap Sports Baseball, that feature licensed content from third parties (Yi et al., 2019). In addition, the company wants to proceed with the construction of the leading gaming platform for Hollywood celebrities and other famous people.
Business Model
The essence of value creation is the ability to improve the worth of something so that it conforms to a specific expectation. The production and sales of a firm and how they can mutually benefit one another are at the heart of value creation in the workplace. Glu Mobile Inc. employs a four-step value generation method when making mobile games. The term “value creation” describes exchanging one thing of value for another of more excellent value (Nieborg et al., 2020). For instance, the crew of creators at Mobile Inc toils away at great ideas for games that might help you rake in more cash. In the business world, this can take the form of developing a brand-new service or product in response to market demand or simplifying internal procedures to increase productivity. Most companies actively promote value creation in the workplace because of its positive impact on bottom-line results.
Development:
When creating original IP franchises or games that have licensed IP from celebrities, Hollywood studios, or other brands, properties, or content owners, the game development process requires a great deal of imagination. To build games that are appealing to players who engage in short bursts of play and to develop games that perform well on mobile phones and tablets despite their inherent restrictions, such as limited screen sizes and control buttons, a creative and technical studio is required (Zhang et al., 2021). Certain complications are built in because the development team is spread over five nations and three continents. The corporation saw the need for a training program and founded our Glu University to provide it. Members of our international studio teams spend significant amounts of time in our U.S. studios as part of Glu University’s mission to foster more collaboration amongst our teams. The program aims to guarantee that the cm will improve game consistency, quality, and financial performance. The company also believes that its new label structure, with individual studios specializing in developing action, celebrity, sports, and simulation games, will lead to better resource allocation and more significant knowledge-sharing opportunities.
At this point, a team of programmers and artists is responsible for coming up with the game’s idea, sketching out its mechanics, and writing its code. At this point, you will also work on the game’s monetization strategy, determining how you want to earn money. Planning, or lack thereof, is always the deciding factor in the success or failure of a game’s development. The game’s desired features are always in the minds of the developers before any work begins on the project. Can you scroll left and right? To solve puzzles? A race car? Should we expect 2D or 3D? Developers constantly jot down ideas, create original characters, experiment with different art styles, and consider what kind of gameplay will make the game enjoyable. The game is continually being built using a new suite of software (Sivanathan et al., 2019). Learning a programming language is essential, regardless of the game engine used to create the game. Python, for instance, has been suggested as a language for creating mobile games. One of Python’s many benefits is an extensive collection of libraries you may use to improve your mobile game.
Production:
Creating a version of the game that can be played is the second step in Glu Mobile’s value-generation process. At this point, the game is being polished by a team of programmers, artists, and testers in preparation for its eventual release. In this phase, we test the game on many platforms to ensure it runs well and is optimized for each.
Distribution:
Glu Mobile’s third step in the value development process is distributing the game to various app stores and marketplaces. During this phase, a group of marketers, PR experts, and analysts work together to spread the word about the game and make it readily available for download on all major platforms. Profitability in business depends on happy clients, who will return again and again if their demands are consistently met (Laghari et al., 2019). Glu Mobiles make money by providing clients with products and services they find helpful. Customers are more likely to keep buying from them if they see that they receive value in exchange for their money (Noris et al., 2023). Adding value to a product or service without an accompanying price increase can also be a marketing strategy. At this point in the process, numerous marketing and promotional initiatives are implemented to boost the game’s exposure and reach the intended demographic. Since Glu Mobile offers the same service as its competitors, it may be difficult for the company to maintain profitability without introducing innovative features. As business owners seeking expansion or new venture opportunities, Glu Mobiles may prioritize non-financial factors in their decision-making process. Constant investment is needed to invent and release new games, update their games regularly, and modify their games so that they can be distributed on new platforms, as the markets for the company’s products are characterized by rapid advancements in technology, particularly in the technical abilities of mobile phones and tablets and changing end-user preferences (Paul, 2020). The Global Chief Technology Officer’s top priority is ensuring the studios have access to the tools they need to produce high-quality games on schedule and within budget.
Monetization:
The game is monetized through in-app purchases and other income streams in the fourth and final stage of Glu Mobile’s value-creation process. In this phase, analysts and monetization experts collaborate to develop and implement a plan for making money off of the game that is optimal for its intended demographic. In-app purchases, ads, subscriptions, and other forms of monetization are also implemented during this phase (Rathnayake et al., 2022). Connecting marketers with mobile game publishers is how mobile advertising for games works. Mobile game publishers share the advertising money advertisers pay for placement in their games. Advertisements for mobile games can be broken down into a few distinct categories. Banner, video, interstitial, and playable ads are the most frequent forms of mobile advertising.
Ad networks act as middlemen between advertisers and publishers like Glu Mobile, specializing in mobile games. Advertisers and content creators can be brought together through the services of an ad network. The most advanced ad networks rely heavily on ad mediation platforms as a crucial technology. Tools provided by these systems allow publishers to better control their ad inventory and earn the most money possible. Some sophisticated ad mediation companies use real-time bidding (RTB) to deliver advertisements to mobile games. During real-time bidding (RTB), advertisers bid for ad placements within games. Advertisements are displayed in the game at the successful bidder’s expense. This is how Glu Mobile typically makes the bulk of its money.
Analysis of Strengths and Weaknesses:
Glu Mobile Inc. is one of the most successful companies because of its many strengths. These advantages aid the company in maintaining its current market share and expanding into new ones. The company’s dedication to making money is among the many benefits of Glu Mobile’s value-generation process. Glu Mobile makes sure its games can make money through in-app purchases and other means by prioritizing monetization at every level of the value-creation process. Glu Mobile’s dedication to optimization during development guarantees that its games run smoothly across a wide range of platforms and hardware (Shen, 2020). Proven ability to create novel items; ingenuity in product design. Outstanding Success in Emerging Markets – Glu Mobile, Inc. has mastered the art of breaking into and dominating new marketplaces. The company has diversified its economic cycle risk in the markets it serves thanks to the expansion’s creation of additional revenue streams.
Proven ability to successfully integrate or acquire companies that complement one another. It has successfully merged with a slew of tech firms in recent years, allowing it to consolidate its infrastructure and create a solid supply chain. Glu Mobile Inc. has achieved strong returns on capital expenditure by successfully launching new revenue streams and is generally proficient at implementing new projects. Glu Mobile Inc.’s robust free cash flows give the corporation the flexibility to invest in promising new ventures (Vicinanza et al., 2020). The corporation has fostered a culture among its distributors and retailers that encourages the promotion of its products and the investment in sales staff training to help customers get the most out of those products. It has a large pool of dependable raw-materials suppliers, which helps it avoid and overcome bottlenecks in the supply chain. Go-to-market tactics for its products are highly effective.
However, several things could be improved in how Glu Mobile generates value. The need for a committed marketing team is a serious shortcoming for the business. This implies that promoting Glu Mobile’s games requires much work and money from third-party services and partners. In addition, Glu Mobile’s emphasis on revenue may divert resources away from game design and innovation, resulting in stale or unoriginal content for gamers (Kerr et al., 2020). The company has to raise more money to invest in the channel because its inventory days are longer than its rivals. This may affect Glu Mobile’s future success. Staff turnover is high in comparison to other companies in the same field. Glu Mobile Inc. needs more staff and must invest more in its training and development than its rivals. Rivals are better at predicting future product demand, which results in more wasted chances. Glu Mobile Inc. is not particularly effective at forecasting demand, so they maintain more stock in their warehouses and distribution channels than their competitors. The company invests less in R&D than the fastest-growing competitors. Despite investing more money than usual in R&D, Glu Mobile Inc. needs to catch up to market leaders in terms of new features and functionality. It is a stable company that focuses on releasing new items with tried-and-true qualities. Ineffective and inefficient financial planning is prevalent. The company’s current and liquid asset ratios indicate that it has room to make better use of its cash on hand.
Impact of Technology
Glu Mobile has been in business for almost 20 years, so it is not surprising that it has evolved in many ways throughout that time. Everything from Java and Brew to the App Store and Google Play, the shift from paid to free-to-play models, and intellectual property licensing from Hollywood blockbuster films. The licensing of intellectual property belonging to Los Angeles celebrities has profoundly impacted the types of mobile games developed by Glu and the business models used to monetize those games (Dietzmann & Alt, 2020). Although there have been several corporate lows for the company, it is currently experiencing a high. Glu Mobile has undergone three distinct phases, which may be visualized through a chart depicting the company’s revenue growth and decline over time. These milestones show how two games almost accidentally changed the course of the company’s history. Glu Mobile Inc. is making extensive use of cutting-edge technology like artificial intelligence (AI) and the metaverse to improve the efficiency with which the company creates value for its customers.
“artificial intelligence” is a system that processes historical and current information to generate predictions, suggestions, and judgments (Barrett et al., 2019). This technology utilizes machine intelligence and the capacity to think like a human. The term “artificial intelligence” (AI) refers not to a single technology but rather to the convergence of several different innovations, models of statistics, algorithms, and methods (Giannakos et al., 2020). Glu Mobile Inc. has invested over 20 years in establishing categories of strategies that may dynamically provide predictive research reports. These reports are generated when numerous strategies line up simultaneously, moving in the same direction, and no conflicting strategies are present (Bowman & Pearson, 2019). AI is being utilized to improve the game production process by providing creators with insights into player conduct, preferences, and engagement levels. This enables developers to design more engaging and immersive games by catering to player preferences. AI is additionally used to improve game mechanics, such as difficulty levels, prizes, and general game balance. This is another application of AI.
The value-generating process at Glu Mobile is also being improved because of the utilization of the metaverse. The metaverse is a simulated environment in which users are able to engage in conversation with one another, as well as with virtual environments, people, and items (Babu & Mohan, 2022). This technology is being utilized to produce new revenue streams by selling virtual goods, services, and other digital content and providing gamers with more immersive and exciting gameplay experiences. In general, Glu Mobile is trying to improve its value generation process by actively using new technologies such as artificial intelligence and the metaverse. The utilization of these technologies is resulting in the creation of new revenue streams as well as the enhancement of player experiences to make them more immersive and engaging. In addition to this, these technological advances are also being utilized to enhance the functioning of game mechanics and supply game developers with information regarding the actions and preferences of players.
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