Businessmodel of Wooga

Customer Segments

Wooga has a mass market business model, with no significant differentiation between customers. The company targets its offerings at all consumers, designing its games to have mass appeal so they can draw as many demographic groups as possible.

Value Proposition

Wooga offers two primary value propositions: performance and brand.

The company has demonstrated strong performance. It utilizes a development process called the “Hit Filter” through which it is able to predict hit games. It starts out by coming up with approximately 40 prototypes each year. Utilizing internal feedback, it determines whether to take each prototype into production, then a soft launch (a release in one or two countries for testing purposes) or a global launch. The methodology has allowed it to create at least two to three successful games a year.

The company has established a strong brand as a result of its success. It is Europe’s largest social game developer and is among the top 10 social game developers on Facebook by number of active users. More than 50 million people worldwide play its titles every month across numerous platforms. Wooga‘s hit titles include the following:

• Diamond Dash - 2.4 million daily active users and 15.5 million monthly active users
• Jelly Splash - 2.1 million daily active users and 8.4 million monthly active users
• Pearl’s Peril - 1.4 million daily active users and 4.0 million monthly active users
• Bubble Island - 0.5 million daily active users and 3.3 million monthly active users
• Monster World - 0.7 million daily active users and 3.0 million monthly active users ### Channels

Wooga’s main channel is its set of game apps on mobile devices and in Facebook; it acquires customers through both. The company promotes its offerings through its website and social media pages.

Customer Relationships

Wooga’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website includes answers to frequently asked questions. That said, there is a personal assistance component in the form of phone, e-mail, and social media support.

Key Activities

Wooga’s business model entails developing entertaining mobile game applications for its customers.

Key Partners

From time to time Wooga partners with other media companies to produce mobile games. For example, in 2015 it announced a high-profile alliance with Fox Digital Entertainment to develop a new title based on the “Futurama” animated television program.

Key Resources

Wooga’s main resource is its staff of game developers and engineers, who evaluate around 40 prototypes on an annual basis and narrows them down to a few titles for launch. The company also depends on marketing employees and customer service staff. As a startup it has relied heavily on funding from outside parties, raising millions from four investors in three rounds as of May 2011.

Cost Structure

Wooga has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is likely research and development expenses, a fixed cost. Other major drivers are in the areas of marketing and transaction expenses, also fixed costs.

Revenue Streams

Wooga has one revenue stream: the prices it charges for virtual goods within its games on mobile apps and in Facebook. Approximately 3% of its users pay for goods such as magic wands. Pricing information is not available. The company does not make money from advertising.