Chinese Online Game Companies Competitive Strategy

With the high-speed development of online game in China, the online game becomes one of new growth profit point in the internet industry within these few years. The online game's characteristic is high profit, high growth rate and high risk. The product cycle of the online game industry is shorter than other industry. The situation in this industry changes very quickly, so does the environment of online game companies. In such situation, how to keep the strategic thinking, how to position themselves strategically, and how to choose competitive strategy are great challenges to the on line game companies.In this paper, the author first focuses on the characteristics of online game, in order to let readers know the definition of online game and the development road of online game. Then the paper analyzes the current status of online game from the worldwide and domestic view. In the mean while, the paper discusses the trends of online game industry, thus to provide the solid evidence to decision-maker for online game companies. The author applies some managerial theories and tools in this study, such as PEST analysis, SWOT analysis model and industry value chain analysis model. The paper points out several typical business models in details, analyzing their advantages and disadvantages separately. Linked with the trends of the online game industry in China, the paper proposes some competitive strategies for Chinese online game companies, which can do great help for the online game companies when they try to make their online game developing strategy.