Student
Play station 3
External Environment & Industry Analysis
Porter’s 5 forces
overall, the industry isunattractive for new entrants, and themain concerns are competitors andthe increasing number of substitutes
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Internal Environment Analysis
This involves assessing the resources and capabilities of the firm in terms of strategic importance and relative strength, specific to PlayStation3 (see Appendix A.3 and A.4) (Grant,2010). The following graph summarises this:
Sony should utilise the key strategic strengths technology, R&D, developing studios, productdevelopment & online gaming to the maximum and invest in these areas. Avenues that needto be worked on are marketing, patents and brand management to support the above. The nextsection investigates strategic options that the firm could undertake by leveraging these keystrengths.
Option Analysis
Based on aforementioned analyses, the following come through as strategic options:1. Expansion of dedicated gaming studios
: A good number of exclusive games are oneof the key success factors in this industry. By drawing from R&D and profit derivedfrom existing developing studios, further expansion would prove to be a successfuldriver of profit, as PlayStation 3 makes most of its money from software sales.2. Innovation by integration of 3D and motion sensing
: This option has an integratedapproach that aims to leverage various profit driver aspects. 3D gaming a rapidlygrowing industry, with an estimated 500% growth rate for 3D TV purchase by 2011(Accenture, 2011); and motion sensing peripherals have shown rapid adoption, asseen earlier.3. Target Market Expansion & Focused Advertising
: Playstation 3 is not popularacross all demographics. In 2010, PS3 primary console female players were 9% and21% for males Wii takes away a huge chunk of the female population at 80% seeAppendix A.13). In order to capture this still underserved market, targeted marketdiversification,
External Environment & Industry Analysis
Porter’s 5 forces
overall, the industry isunattractive for new entrants, and themain concerns are competitors andthe increasing number of substitutes
[pic]
[pic]
Internal Environment Analysis
This involves assessing the resources and capabilities of the firm in terms of strategic importance and relative strength, specific to PlayStation3 (see Appendix A.3 and A.4) (Grant,2010). The following graph summarises this:
Sony should utilise the key strategic strengths technology, R&D, developing studios, productdevelopment & online gaming to the maximum and invest in these areas. Avenues that needto be worked on are marketing, patents and brand management to support the above. The nextsection investigates strategic options that the firm could undertake by leveraging these keystrengths.
Option Analysis
Based on aforementioned analyses, the following come through as strategic options:1. Expansion of dedicated gaming studios
: A good number of exclusive games are oneof the key success factors in this industry. By drawing from R&D and profit derivedfrom existing developing studios, further expansion would prove to be a successfuldriver of profit, as PlayStation 3 makes most of its money from software sales.2. Innovation by integration of 3D and motion sensing
: This option has an integratedapproach that aims to leverage various profit driver aspects. 3D gaming a rapidlygrowing industry, with an estimated 500% growth rate for 3D TV purchase by 2011(Accenture, 2011); and motion sensing peripherals have shown rapid adoption, asseen earlier.3. Target Market Expansion & Focused Advertising
: Playstation 3 is not popularacross all demographics. In 2010, PS3 primary console female players were 9% and21% for males Wii takes away a huge chunk of the female population at 80% seeAppendix A.13). In order to capture this still underserved market, targeted marketdiversification,