Case Study of Video Game
Introduction
Today, mass media become the primary source of entertainment and information. Most of the time, people are more entice to turn-on the television set to watch entertainment programs. The more media subscribed to entertainment programs the more people are hooked and hold to watch. The addiction of people on media especially those which produce entertainment lures is rooted from the hedonistic human nature of man—the desire to gratify our pleasures. In fact, media theorists believed that what predominantly preoccupied media is how to create programs which are entertaining. In fact, even the news programs are not devoid of entertainment. Moreover, we have now what we call infotainment—a combination of information and entertainment in a single unit of program.
One of the enticing moments that man subscribes into is gaming. Studies revealed based on psycho-social researches that people adhere or even addicted to games because of the pleasure it ushers. More than the surface elements it revealed were the usefulness it afforded to cognitive development. Yet, with much exposure to gaming eventually lead to addiction and destabilizing behavior towards other human psychological aspects.
On the other hand, let us see how the main propagators of medium on games with its great impact on people struggling to market their high-ends products and assumed a powerful place in their respective industry. The use therefore of environmental and organizational analysis is important in order to understand the internal and external processes organizations undertaken in order to be successful in marketing their own products.
Part 1
Political/Legal – The case study about rivalry among multinational video games manufacturers implicitly provides semblance of thoughts regarding the political and legal aspect among multinational producers. Throughout the case analysis of contending video games producers, what was only construed to have a political and legal underpinning was the Japanese consumers’ alienated expression towards an American video game product Microsoft Xbox. Other concerns on political aspect may be seen in a larger scale like the open trade and political systems of other regions which allows other countries to open business ventures and exchange goods but still observe the regulated laws and economic policies.
Economic – The global and technological trends set forth for the economic boom of Japan. With its sophisticated and innovative technological production such as video games gadgets provide a wider audience and access to various continents and regions of the world as also set by the globalization. Moreover, as global, national and local economic trends changes, competition among video game manufacturers also change economic and business strategies in order to attune to global changes.
Socio-Cultural – the socio-cultural factor is more evident in the case analysis since the object of this reflection is focused on consumers. The adaptability and significant gratification of consumers brought an economic growth and competition among leading manufacturers. In the level of behavior, consumers tend to behave differently and perceive to have higher percent of interest in video gaming.
Technology – Quite clear in the analysis the technological advancement created by different manufacturers in order to achieve the highest position in the industry, which Sony successfully made it. Technological sophistication and mobilization was catered to attract more consumers and gain bundle of profits.
Environment – Any material production inescapably causes the environment. Issues on differentiation of cultural and social human behavior brought by commodification of products such as video gaming can indirectly affect the environmental processes. In this case, the mere process of production materials can have hazardous effects to the environment in general.
Part 2
Threats of New Entrants – this can be a long explanation if one of each entry like Sony, Nintendo, Senga and Microsoft will be put into account. What is viable and significant to underline in this aspect was that each entrants prepared a tedious and rigorous management strategies and invested multimillion resources to defeat its competitors. The competition between Sony, Nintendo, Senga and Microsoft clearly speak of how each of them tried to get the pick the head of the line.
Bargaining power of suppliers – Different companies employed suppliers that can reach their expectations regarding the product output. Like the Sony, and Nintendo which they employed software and hardware makers that performed their work more than what the company expected from them. This high level of performance coming from the suppliers exceedingly contributes to the profits of Sony and eventually maintains their status as a leading manufacturer of video games or even home entertainment.
Bargaining power of Buyers – Each company’s products have their own consumers and buyers yet, some consumers who are more into advance and sophisticated products shifted to another company that met his/her expectation. The strong competition among companies like Sony, Nintendo, and Microsoft, brought significant ambiguity from the buyers. Yet, Sony made it to gather powerful buyers compared to its competitors like Microsoft and Nintendo.
Threat of Substitutes – this became prevailing among the companies in order to adapt to the changes of consumers behavior towards material products. Moreover, substitutes also becomes detrimental if executed wrongly like what the Senga tried to risk when it introduced a new product which Sony defeated in terms of its worldwide production.
Rivalry – Quite interesting to observe and see how each company tries to compete and defeat each other’s weaknesses. Understandably, the competition is fierce and close-knit. Yet who prevails among the rest is one with great power to strategize highly effective managerial and business methods and create friendly and attractive products for consumers’ consumption.
Credit:ivythesis.typepad.com
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