Everyone agrees that the trend of the metaverse is coming. But how can we win in the metaverse realm?
After the former Facebook changed its name to Meta in October 2021, large existing companies announced their entry into the metaverse one after another. The best business people are realizing that they need to get on board with this trend. (Also check this post to learn how the metaverse will change the world. What is the metaverse? 5 values that the metaverse will demonstrate)
So, how can we win in the metaverse realm?
Even though we know the word “metaverse” vaguely, a few people understand a complete picture of the Metaverse. We will explore how we can enter this industry as a business not to get behind this trend.
When a company want to enter the metaverse industry, what can they do and what factors are important to succeed? There are basically two main patterns to leverage the metaverse: work on the Metaverse itself as a business and utilize the metaverse to improve the quality and efficiency of existing business activities. In this blog, we’ll focus on working on the metaverse itself as a business. If you are not familiar to the metaverse yet, check this post first!
A tech company that can work on the metaverse as a main business or a company that can create content for the metaverse are categorized here. The business domain can be divided into 4 layers: Content service, Platform, Hardware, and Infrastructure. Let’s learn each business domain to see a complete picture of the metaverse business realm.
Developing content that can be used in the metaverse. The business sells the content on a virtual marketplace or on M-World.
・3D engine asset
Making the developing process of M-World or content efficient and providing that as a platform. The business makes a profit by charging a margin for every transaction.
Creating a foundation of the metaverse where participants can exchange digital assets. The business will charge a margin for every transaction or sale.
Collecting content and offering them on a marketplace. It’s like Amazon in the real world.
Design and sale of all applications that run on the device.
Manufacture and sale of XR headset that allows people to enter the metaverse. Quest Pro is one example.
Manufacture and sale of key components that make up devices such as semiconductors, liquid crystals, and optical systems.
Process the huge amount of traffic made in the metaverse. The business normally charges the fee from users(eg. content providers)
Supporting large-scale communication in the metaverse and collecting communication costs from users
In the metaverse industry, there are basically two types of strategies for business: Vertically integrated strategy and Domain-specific strategy.
Existing large companies will take this strategy with their economy of scale. The full-area longitudinal strategy covers all layers. As you can imagine, this strategy is difficult for startups to win since the investment will be distributed.
This strategy covers not all layers like the full-area longitudinal strategy but multiple layers simultaneously. For example, investing in the 3D assets layer covers content service and platform sectors. So it’s categorized as subdomain longitudinal.
The business focuses on creating and distributing content in this strategy. This domain is similar to the Web 2.0 business of setting up a website and providing services and is the business domain where the largest number of players will eventually enter.
Aiming to be a major player in VR and AR/MR device design and manufacturing is the device-specific strategy. Big techs such as Meta and Apple are already producing HMD(head-mount display) with huge investments.
Become an indispensable supplier of critical components such as semiconductors, liquid crystals, and optical systems.
These are 5 basic strategies for businesses to enter the metaverse industry. (presented by BCG)
5 strategies described above will be the basis of your strategy. So, thinking of how to enter the metaverse industry is finding the business domain where you can win from these strategies.
If you have plenty of budget to invest in the metaverse industry or technical infrastructure such as device designers etc., taking a Vertically integrated strategy can be a good strategy. Since the metaverse industry is expected to grow in long term, covering multiple layers can result in a huge return. Not many companies can follow this strategy, you can stand out in the crowd.
If you have intellectual properties or content that can attract customers in the metaverse, focusing on content service can be a good business domain. Creating an M-World that can attract users with those intellectual properties will be successful since it’s the strategy others can’t follow.
In conclusion, entering the metaverse industry can be a thrilling and rewarding experience. With the right combination of creativity, technical expertise, and business acumen, you can create immersive and engaging virtual experiences that captivate audiences and drive innovation in the field. However, it’s important to keep in mind that the metaverse is a rapidly evolving and highly competitive industry, so it’s essential to stay up-to-date on the latest developments and trends in order to succeed.
Are you interested in exploring the exciting world of the metaverse?
If so, then now is the time to get involved! Whether you’re a developer, designer, entrepreneur, or just an enthusiast looking to learn more, there are many ways to enter the metaverse industry and make your mark.
Get in touch with us today! We can help your business to start a metaverse-related business. Don’t miss out on this opportunity!