Research Paper > MGMT 661_ Sony's Battle for Video Game Supremacy.

Document Content and Description Below

Table of content 1) Executive summary.3, 4 2) Background .5 3) Swott analysis...6, 7 4) PESTEl analysis.8, 9 5) Porters five forces10 6) Competitive analysis11 7) Problem statement .12 8) Key ... issues 13, 14 9) Identification of alternatives.15 10) Evaluation of alternatives.16 11) Implementation...16 12) Recommendations/ conclusion17 13) Evaluation and risk of recommended strategy.........17, 18 14) Contingency plan.18 15) References 19 Appendix Business drivers20 BCG Matrix...21 Ansoff’s strategy opportunity matrix.22 Core competencies23 3 Executive Summary: The case under this critical review discloses the supremacy of Sony and finding a high spot in the gaming industry. The company has been known for its innovation and advancement of technology in electronics for years. However, with the foresight of what the future could be, in 1991, the company decided to step up in the gaming world. Gaming consoles setting up a technology that would be a game-changer for its existence. Sony has a diverse portfolio of product manufacture and sales. The electronics being the major earning source, placing the gaming section on its second most revenue-generating avenue, the company was ready to take of the biggest players globally in the years to come. The path to the achievement of supremacy in the gaming segment globally the company has to combat a series of wars with the growing competitors. The inception of their first gaming system that they called PlayStation. Sony was able to set its foot in the fastest growing market at the time. Nintendo, Sega, Microsoft’s Xbox and Atari were the major players having their ups and downs. However, Sony’s PlayStation market share was staggered. The development of a business model and innovative gaming technology helped Sony reach its heights. Amidst issues in connection to the marketing and higher costs to the consumers, PlayStation remained the first choice for gamers across the globe. How Sony was able to take the spot from its competitors has been described herein the case. Using SWOTT and PESTEL analysis in this review, we would look at the strategy that Sony built up its empire on the foundation of PlayStation as a supplement to the revenues so earned from the electronic appliance and product sales. The key issues could have a better-recommended option as started that Sony now shall focus on customer experience and satisfaction with innovation to retain the spot that it has been 4 determined as the leader in the gaming market by focusing on prior market research. The terminology “console war” has also been used in context to the competition of the players in the gaming segment. The core competencies of Sony and PlayStation are closely analyzed to ascertain the future of the company. The dominance in the gaming business as earned by Sony’s PlayStation determines the consistency of the firm's growth with the technological growth globally. Making computer and mobile device compatibility, Sony has been addressing the key issues for its growth. In this review, we would also suggest certain alternatives that Sony could have used with their evaluation and planning as to the retention of the supremacy spot for years to come. The concerns of Cost, Marketing and competitive analysis are some ever-growing concerns for Sony and there could be a niche/vacuum that a new product may prove to be a threat to the company. Thus, Sony has to ensure that it continues its growth and innovative plan with efficiently managing competition and customer preferences. Background: The ever-growing console war among the big players in the gaming industry comprising of Microsoft and Nintendo had greater concerns for Sony. The newly launched format of high definition discs and next-generation optical disc format having a higher storage capacity were the key components in the times that Sony and its competitors had been waiting for. With this development, the case also describes the journey of Sony from 1991 to 2006 until the launch of its PlayStation 3 to combat Microsoft’s Xbox and others. The evolution of home video games in the industry had been the turning point for the gaming industry that now demand from the households have been generated with its deep impact for a certain age group. 5 Only in the U.S., the gaming industry had a sale that nearly generated a revenue of $10.5 billion in 2005. The global phenomena were far more attractive. The focus was shifted from software to hardware for the firms. The electronic entertainment of over three decades old had been revived with the new electronic entertainment business. The console war ignited the new series of events that all companies had been waiting for. With the internet connectivity, users could play online, and Sony wanted a share in these online gaming models thus they launched a series of new gaming products that lured the consumers. With Sega, Nintendo, Atari and Xbox, Sony’s PlayStation saw its existence as the market leader with the launch of PS3. [Show More]

Last updated: 1 year ago

Preview 1 out of 23 pages