In this section, theoretical and managerial implications of the research study are presented.
5.1. Theoretical implication
The research study finds that in the pre-establishment, early growth and even effective growth stages, Supercell encounters with problems like in any other startups or small businesses as what researchers commonly described as issues with finances (Kirby, 2002), limited know-how (Rode & Vallaster, 2005), resources (Abimbola & Kocak, 2007; Okopu et al., 2007) and time (Wong & Merriless, 2005; Boyle, 2003). In the case study, it would seem to indicate that finances or money (Kirby, 2002), as a primary form of capital investment, to be the greatest threat as well as the catalyst for growth at the pre-establishment and early growth stage (Juntunen et al., 2010) but not anymore in the
110
effective growth stage. Therefore, capital investment acts as a threshold which the company must cross over in order to get to the next growth stage (Juntunen et al., p. 119, 2010).
As a result, after receiving substantial investment from Accel Partners in May 2011, the company has a new member (Kevin Comolli from Accel Partners) on its board of directors. Then, it had the necessary capital to solve other issues that plague small businesses such as limited know-how and resources. With the new capital investment, Supercell as able to restructure the company strategically and pursue new strategies by changing its business strategy (from PC to tablet/mobile platforms) and investing in intellectual resources such as hiring the best game developers and designers to create the best games while gaining core competencies (Prahalad & Hamel, 1990) which would serve to differentiate them from competition. Consequently, from June 2011 to Aug 2012, Supercell discontinued several games and launched global hits (Hay Day and Clash of Clans) which catapulted the company into stardom. Therefore, this study contributes an empirically valid theory that capital investment would be the pre-requisite and needed catalyst to progress between growth stages and to pass a crisis point as it provides a small company the means to overcome its operational issues or difficulties.
In 2010, Balmer (p. 194, 2010) predicted that these next 15 years are an exciting time for corporate branding scholars, policymakers and consultants. Corporate branding is a new marketing philosophy since, in writing the case study at this present time, the author had to reflect on some key marketing concepts. For instance, the findings of this case study indicate that while Supercell was building its corporate brand, it integrated and employed both brand-oriented and market-oriented approaches. Urde et al., (2013) anticipate that in modern organizations there is a possibility of joining these two opposing marketing paradigms. These marketing paradigms, despite being different, are interdependent and can be used together (ibid). For this reason, this research study also provides a theoretical validity to the “the market and brand-oriented approaches model”
from Urde et al., (2013). In this model, the Corporate Brand Identity Matrix (CBIM) is built upon and it gives the ability to understand the corporate brand identity of any organization (ibid).
111
Additionally, a prominent theoretical contribution of the CBIM is that it integrates [credible] existing theory into a single framework (Urde, p. 758, 2013). Still, it is very subjective in terms of deciding how much existing theory should be used to create the framework. While conducting the study, the author found the term “brand reputation”
being mentioned in interview. Kapferer (p. 26, 2008) defines brand reputation is formed by familiarity, i.e. “I know it well”, “I use it a lot”, and by brand perception of uniqueness, i.e. “this brand is unique”, “this brand is different”, and “there is no substitute”. This view is similar to Aaker (2004) and it contributes to differentiation (ibid). Nevertheless, this view is not found in the current CBIM matrix. Urde (p. 753, 2013) gives the CBIM external element a value proposition to lead to a favorable reputation (Greyser, 2009), while claiming that image and reputation influence significantly over how corporate brand identity develops (ibid).
Therefore, the author proposes a revised CBIM matrix with brand reputation as an additional element with factors from ‘creating corporate reputations’ introduced in Dowling (2002). Additionally, from more recent and fluid thinkers such as Balmer (2010) who foresees corporate brand reputation as the new identity and brand scape. Further studies into brand reputation, and even more explicitly, adding the corporate brand reputation to the existing CBIM framework from Urde (2013), it would further serve to validate the framework as it is viewed as both of theoretical and managerial importance in understanding and management of the corporate brand identity.
5.2. Managerial implication
This research study aims to identify and describe the corporate brand identity of a successful company from the mobile games industry. The growth and expansion of Supercell into the entertainment industry provides numerous new opportunities as well as challenges for the company. As the result of this thesis work, the management of Supercell will have an overview and understanding of its corporate brand identity through the presentation of the Corporate Brand Identity Matrix. The main objective going forward from there is what to do with the identity, to understand how it works and how to make it stronger (Urde, p. 758, 2013). One suggestion is Supercell derive compelling
112
marketing strategies that enable the company to leverage its corporate brand (Hatch &
Schultz, 2003) in order to gain the halo effect (Kapferer, 2008) from the games’ (Hay Day, Clash of Clans, Boom Beach and Clash Royale) on the fan base to further strengthen the corporate brand of Supercell.
These game brands (Hay Day, Clash of Clans, Boom Beach and Clash Royale) have over a billion fans globally, so if Supercell can create the halo effect and transfer the core values of ‘fun’, ‘social’ and ‘longevity’ to its corporate brand strategy, it would substantially expand its corporate brand identity and allow future endeavors by the company. In other words, Supercell will be more easily recognized by consumers as a provider and source of high quality social entertainment and fun. This would further differentiate Supercell from other entertainment brands, as consumers would become to be more aware about what to expect from Supercell products and services. Additionally, consumers may incline to greater reciprocate and be at ease in trying or engaging with Supercell brand experience, products and services, allowing Supercell to reach its vision of creating games with longevity in years to come for the widest group of people possible.
Lastly, the corporate brand identity of Supercell is also being shaped and greatly influenced by the company’s employees from all levels. The findings and structure of this case study would be beneficial for new employees and summer interns at Supercell. The historical account of the company timeline on its events and growth phases would serve as a guide for new and current employees to understand the history of the company and see where the company is currently at. It also allows the new and old employees to better assimilate to the existing corporate culture, to enhance the corporate brand identity and to support the overall company strategy progressing forward.