Pricing Strategies of Born Globals: The Case of Digital Game Industry

Abstract

Purpose: Recognizing and discussing the pricing decisions and strategies utilized by born global firms for digital games. Additionally, analyzing the effect that the type of internationalization, characteristics of digital products and the game industry itself have on the pricing decisions and strategies.

Theoretical Background: The theoretical framework is created by analyzing and combining theories from existing studies concerning born globals, digital products, pricing strategies and the digital game industry.

Methodology: The research is conducted as a qualitative study, where the case companies are studied through semi-structured interviews. The gathered empirical data is analyzed through propositions that are derived from the theoretical framework of the thesis and used as a support in answering to the research question and objectives of the thesis.

Findings: Born global companies are found to have very standardized and product-led nature in their pricing strategies. Furthermore, the characteristics of digital content enable the use of new monetization models utilizing value-based pricing strategies, which in turn create inter-correlating relationships between product and pricing strategies.

Limitations: The largest limitations of the study come from the small and geographically homogenous sample of volunteered case companies.

Value: This thesis creates an addition to a relatively scarcely researched field of pricing strategies for born global companies. Additionally, it creates understanding on how the digital nature of products and the gaming industry affect the marketing strategy especially in terms of pricing.