In this paper‚ we will examine the video game console industry and apply Porter’s Five Force model to SONY. Sony is a big media conglomerate with businesses in the gaming‚ music‚ movies/entertainment and electronics industries. It has a strong brand image‚ a wide product range and had over $75 billion in sales in 2010. For the purposes of doing this analysis‚ we will concentrate on Sony’s performance in the video game industry‚ understand its current position with respect to its competitors and recommend
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VRIO Analysis Bristol-Myers Squibb and other pharmaceutical companies have very limited space for the development of competitive advantage. This is due to the limitations set in patents available for new pharmaceuticals. Most chemicals in pharmaceutical products have an equivalently functional substitute making it possible to have multiple products on the market that have identical uses and outcomes. This being the case‚ pharmaceutical companies can’t rely on one particular product to provide
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dominate the current market: Microsoft‚ PlayStation 3‚ and Nintendo. Furthermore‚ based on porter’s five forces‚ the threat of new entry is low. (Exhibit 2) Nintendo is outselling Sony 2 to 1 by going after customers currently out of the video game market share. This threat shouldn’t be as much of a concern as an opportunity; the two companies are competing in different realms. (Exhibit 3) Nintendo’s introduction to the 16 bit game system Nintendo delayed its introduction of the 16-bit system because
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Competition • High Development Costs Recommendations for • Saas Video Games Nintendo’s Competitors • Focus on Youth Markets Industry Environment & Products Environment Dominance of 3 industry leaders • 2000 • 2006 • 2007 Sony Microsoft Nintendo Products Technologically Advanced • Fast Processing Speed • High Definition Video • Complex Games Young Adult Customers • Mostly male • Late 20s - early 30s • Disposable Income Multi-use consoles • Movies • Music • TV Shows Shrinking
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Company overview Nintendo is a Japanese based corporation founded in 1989. It’s original purpose was producing handmade hanafuda cards. After failed attempts at changing the direction of the company‚ it found success in the interactive entertainment systems and software industry. It changed its name from Nintendo Playing Card Company to Nintendo Company‚ Ltd. in 1963. Since then‚ Nintendo Co. has been creating video games and gaming systems that have become tops in their respective categories. In
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1. What are the strategic capabilities of IKEA? From the VIRO table (appendix 1) IKEA’s strategic capabilities are grouped into the following categories - Brand/quality reputation Financial strength Production capacity. Brand/Quality reputation IKEA operates (in 2002) 154 stores in 22 countries and serviced 286 million customers. With a 14% share of the market (in America)‚ there is huge opportunity for growth via a continued marketing campaign to leverage off its brand‚ differentiating
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Nintendo Wii Case Analysis The Wii is a video game console released by Nintendo on 2006. It is the 7th generation of the Nintendo family. Today it competes with Sony Playstation 3 which was released the same year and Microsoft Xbox 360 which was released a year ago in 2005. Why Wii? Well‚ they say that Wii is more than a game machine. It is a social and active entertainment that brings the whole family together. How they have achieved this is by innovation in their gaming console. The Nintendo
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with an interesting dilemma. Hirai‚ the chief executive of Sony Computer Entertainment Inc. faced pressure due to Sony’s Playstation 3 video game console losing market share to the Nintendo Wii. Hirai faced a major business decision in deciding how Sony should respond to the cheaper‚ more interactive‚ family oriented Nintendo Wii. The Video Game Industry at a Glance From an industry analysis standpoint‚ the videogame console industry in 2008 was not very attractive. The industry was‚ and still is
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usual teen market to a much greater audience. What do you think are the Nintendo’s chances of creating a long-term blue ocean with Wii? From reading this article it is clear that they are successfully implementing a long-term blue ocean with Wii. Nintendo are competing easily with competitors when it comes to price comparison. They also differentiate themselves
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Videogames have evolved from the early age of retro gaming where half of the time is spent blowing on a cartridge. Nowadays videogames are much more refined and look stunning. However‚ there is a drawback to this advancement‚ such games can not be created without massive funding and hundreds of developers. Many games also future online servers which need to be kept online for years. Game publishers have found ways to mitigate that issue by introducing other monetization methods in their games. Such
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