Application of Harvard Analytical Framework in the Game Industry: Take NetEase as an Example

The Affiliated International School of Shenzhen University (YHV), 518000 Shenzhen, China

^* Corresponding author: 1911511221@mail.sit.edu.cn

Abstract

The Chinese game industry has been growing rapidly in the past decades and now has the biggest market share in the world. It is important to analyse the game industry in China, especially focus on a specific company. This paper applied the Harvard analytical framework to analyse NetEase, one of China’s biggest game companies. By conducting strategic analysis, financial analysis, and prospect analysis, this paper highlighted the advantages and disadvantages of NetEase. This paper provided a comprehensive understanding of the Chinese game industry. Through analysis under the Harward analytical framework this paper found four problems impeding the development of NetEase, which include reliance on single income source, loss in popularity, fewer benefits from scale economy and regulatory restrictions. Finally, to solve the problems this paper proposed several suggestions for NetEase aiming to help the company encounter the obstacles in its development as well as provide useful references for other companies in the industry.