3. Growth - 20 languages, 80+ million users worldwide, since 2004

4. Platform – Web based

6. General overview of the market in Turkey Main operators Early entrants: Joymax, K2 Networks and Gameforge. Very successful -> no local competitors. GameSultan, GGChave started as Internet-café, became local operators handling distribution, payment systems, localization. (20,000 Internet-café by 2009). Knight Online earned about $1M/month from Turkish operations. Metin2 has about 3 Million active Turkish users. New entrants (like Korean publisher NHN) are preparing Turkish version of their games. Virtual worlds Virtual worlds are growing (for ex.: Sanalikagrew to 3Million registered users in 6 months).

7. General overview of the market in Turkey Facebook Turkey is the 3rd biggest country on the platform. More than 18.5M members(02.01.2010). 44% of users are 18-24 y.o. Popular games: Farmville, City of Wonder. Main business models used for social network games: 1) in-game ads; 2) micro-transactions.

8. Industry analysis of social network games in Turkey using the five forces

9. Bargaining power of suppliers Independent game developers - low bargaining power. Using external platform= High costs of switching suppliers for game developers – when games are adapted to the platform dependency increases. Few number of platforms in relation to the number of game developers

10. Bargaining power of customers Large customer base – low volumes Differentiated products Switching costs could be present (psychological)

11. Threat of new entrants Developing a new platform requires substantial investments. Strict governmental policies Independent game developers could emerge at any time Value of product increased by number of users.

12. Threat of substitutes Many available substitutes from both a narrow and broad perspective Technological advances may change the future game market Time spent on Facebook increasing, both threath of substitute (own platform) and opportunity (usingFacebook) High taxes on importing video games

13. Rivalry among existing competitors Numerous equally big competitors Currently in Turkey there are comparable few independent social network games Low barriers of exit Commited actors Industry primarily not figthing for monetary resources, rather people’s time Innovation and first mover advantage crucial difficult to maintain leadership over time Aspiration to drive industry change

14. Threats for Stardoll The threat of the most popular platform – Facebook Rapid technological changes/updates Dependency on Facebook micro payment solutions (currently could be seen as an opportunity) Bargaining power of platform supplier, increased dependency Difficulty to maintain competitive advantage and leadership position – innovation required Governmental regulations, interventions and restrictions Uncertain and fast-changing industry Increasing density (level) of competition Foreign competitors with strong financial and IT background, Korean companies entering the market Domestic competitors with strong competences and know-how of the local market The potential threat of mobile games (future substitute)

15. Opportunities for Stardoll The market: massive potential Young audience – young market Men The dominant (standard) platform Facebook – highly used and hence a good distribution channel The Turkish fashion industry is growing and is hence young and dynamic  possibility for Stardoll integrate and leverage Turkish people willing to pay when liking the game Exploit opportunities in young target groups e.g. Stardoll merchandise Market becoming more western – chance to anticipate change Developing high quality games to satisfy increasing knowledge of the European market, Turkey might follow the same pattern

16. Reference http://www.docstoc.com/docs/17645381/GFK-OnlineGamingMarketTurkeyResults http://www.scribd.com/doc/16737036/Social-Networking-Market-in-Turkey-Vodafone-Messenger-Launch http://www.tr-facebook.net/facebook-turkiye-kullanicilari-hakkinda-2009-istatistigi.html http://www.insidefacebook.com/2010/02/11/turkey-uk-france-germany-growing-the-most-as-facebook-reaches-123-million-europeans/ Online games in Turkey. http://www.icopartners.com/blog/archives/1044 http://www.programlar.com/makale/oyunlarin-gelecegi-sosyal-ag-oyunlari-ve-5-tahmin.2o.5.1.html http://www.todayszaman.com/news-216390-nascent-turkish-games-sector-emerging-player-in-global-market.html http://www.activegamingmedia.com/media-center/turkey-rising-%E2%80%93-an-interview-with-erkan-bayol-executive-producer-at-ceidot-game-studios http://www.export.by/en/?act=news&mode=view&page=2&id=12823 http://www.icopartners.com/blog/archives/1044 http://www.alexa.com/siteinfo/facebook.com http://www.bigpoint.net/index.es?action=partner&subpage=partner_developer http://www.activegamingmedia.com/media-center/turkey-rising-%E2%80%93-an-interview-with-erkan-bayol-executive-producer-at-ceidot-game-studios http://www.appdata.com/ http://kotaku.com/5657969/why-do-people-play-social-network-games www.zynga.com http://www.alexa.com/siteinfo/facebook.com http://www.facebook.com/apps/application.php?id=111596662223307 Porter, M.E:, “The Five Competetive Forces that Shape Competetive Strategy”, HBR, 2008 Prahalad&Ramaswamy, “Co-Creating Unique Value with Customers”, 2004 Guest lecture with ChristerBrjörkman 2011-01-31 MalinStröman, interview 11-01-27 Guest lecture with Linda Hellqvist, Google 2010-11-18 Guest lecture with Stefan Lampinen 2011-02-02