Analysis MiHoYo Business Model Competitiveness

Abstract

People’s purchasing capacity rises along with that of the national economic strength. At the same time, because of the rapid development of the Internet and mobile phones becoming a common commodity, mobile games have gradually gained the spotlight and integrated into people’s daily lives. The industry of mobile games has expanded tremendously, which has led to fierce competition under the promotion of capitalism. Small- to medium-sized enterprises in the game development industry now face strenuous difficulties in moving forward with the expansion. In this article, we appraise MiHoYo Co., Ltd., a digital game development and publishing company based in Shanghai, regarding its development so far in the industry; using theories and methods in business administration, we analyze the competitive advantages of MiHoYo. MiHoYo has released best-selling video games with themes centered around renowned intellectual properties, which form a multi-dimensional matrix of products that enhances its lead in competition; at reasonable prices; MiHoYo’s original intellectual properties have attracted a large number of users with high consumer stickiness. Moreover, MiHoYo has a culture of prioritizing technology and setting clear goals, and it has successfully released promising products while gathering experience in business management. The success of MiHoYo under the challenges posed by the game development industry allows other small- to medium-sized enterprises to see development directions in a new light. Lastly, suggestions are presented for the future progress of MiHoYo.