...Apple is planning to enter the intensely competitive gaming industry, dominated by three large competitors, Microsoft, Sony and Nintendo. Apple’s has success with providing quality products and, has already established markets for Mac computers, notebooks, TV, iPad’s, iPhone’s and iPod’s. As Apple has a reputation being high quality, stylish and, luxurious brand, the new game console will be perceived to have the same qualities. Step 1 - Idea Generation With the new technology and changing consumer preferences the gaming industry is continuously evolving. With the right product catered to the market, differentiation can bring market share, profits and, growth. Using marketing research Apple needs to identify what is already in the market, the demand for them, how they could be improved and differentiated. Step 2: Screening Strength • Already established successful brand name • Loyal customers • Apple perceived as innovative, superior quality and, stylish products • Ability to generate higher profits due to premium price charged Weakness • Failure in the launch of the first gaming system • Inexperience in the video game industry • Short life span on game consoles Opportunities • Apple caters to the premium market which has less competition • Continuously expanding market. • Consumer demand for new innovative products Threats • Intense competition from already established competitors • Challenges caused by the continuously evolving market to ...
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...Apple Game Console. It has been rumored that Apple is developing a game console that would be competition with systems such as the Wii from Nintendo, Xbox 360 from Microsoft, and PS3 from Sony. Any new foray into this market would have to be well researched and strategized if it were to be profitable. Although this market is still strong I believe that it is in its mature phase of the life cycle for the most part and it would take a system that was unique and rare to win market share from the three big game console providers. If Apple were to enter the market and try and compete head-to-head with these competitors with a product that was not any better or different than what is out there they would more than likely fail. Although Apple has a strong brand name and brand familiarity that would certainly draw some interest from potential customers. Brand name alone will not convince large numbers of consumers to purchase a new system with limited titles available if it didn’t provide an experience that was significantly better than they can achieve with their current gaming system and its plethora of titles. Nintendo recognized this when they focused on promoting their handheld DS system and branching it out into areas other than strictly game play. They knew that to come out with a new console that was similar to what Sony and Microsoft were offering would result in minimal (if any) profits and market share. Instead they focused on coming up with a product and idea that...
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...In 2004, Nintendo had a number of strategies available to change the company position in the market. It had become more than clear that following the same tactic would not allow them to overlap its competitors. In order to growth further, Nintendo could integrate the opportunity to reduce costs and expand into other markets at the same time. Secondly, and maybe most promising, they could explore different consumers segments, which would enable Nintendo to reach market opportunities that had been ignored by Sony and Microsoft so far. VERTICAL INTEGRATION After analyzing its core competences, the costs, benefits and risks involved, Nintendo developed a strategy based on internalizing as much as possible gaining substantial influence in the final products. This allows the company to outsource primarily activities in which either they possess a low level of core competencies and/or transaction costs show clear disadvantages in internalizing. Nintendo follows a fabless production model (derived from “fabrication-less”) which means that all production processes are outsourced to external suppliers and production factories and then sent and assemble in Nintendo-owned factories. By avoiding investing money on expand vertical, the company reduce their transaction cost by outsourcing the manufacturing and still manage to maintain lower retail prices than competitors. This result in a different vertical integration compare to the previously existing model allowing Nintendo to succeed...
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... 2012 MKT 421 Ronald Bonlender Marketing Plan Apple Inc. became incorporated in 1977 and has since generated many innovations giving Apple Inc. a valuable reputation as well as immense revenue. Apple Inc. designs, manufactures and markets a variety of products sold nationwide through retail stores, online sites, and direct sale. Apple Inc. is recognized for product differentiation and will continue to do so with the introduction of Apple Inc.’s I-Magine (video game console). In creating a marketing plan, Apple Inc. intends to consider various factors, such as geographic availability, product mix, and transmission of product description. In addition, phase I of Apple Inc.’s marketing plan will consider an effective SWOT analysis to determine strengths, weaknesses, opportunities, and threats, or trends to creating this latest product. Furthermore, marketing research and analyzing consumer factors, such as demographics, psychographics, behaviors, and geographic considerations will ensure I-Magine’s success. The function in Phase I of Team B’s marketing plan is to consider industrial analysis in relation to competition and differentiation from other competitors in the video gaming industry. To pursue this strategy in Phase II, Team B undertook data-based synopsis from different online resources to gather information on the organizational strategy of Apple Inc. Findings from research information pertaining to the video game industry’s products and services will be used to quantify...
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...distribution and why Sony chose these partners to distribute their new product. PlayStation TV is about to change your PlayStation Vita, PSP, and PS4 experience so get ready! Product Description The PlayStation TV has many features available to the avid gamer. The most sought after feature is the streaming service and the remote play. Many however, do not know what remote play is. Remote Play is a feature that lets the PlayStation TV operate a PS4 system via a wired or wireless connection (Sony PlayStation, 2014). This gives the player the ability to play most PS4 games away from the PS4 system on their PlayStation TV in another room in their household (Sony PlayStation, 2014). The PS4 system can connect to the PlayStation TV in a two different ways. The PS4 system Link app on the PlayStation TV will pick the connection method best suited to your current situation (Sony PlayStation, 2014). Using the PlayStation 4 console as a wireless access point provide the best Remote Play experience. This allows the PlayStation TV to wirelessly connect directly to the PlayStation 4 (Sony PlayStation, 2014). The PlayStation TV connects to a router via LAN cable (recommended) or wirelessly through Wi-Fi, which in turn connects to the PS4 system. That would be the second...
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...The Challenge Of Maintaining Greatness in the Gaming Industry Strategic Management Professor : Yuri Mishina 12-12-2013 1 Table of Contents Executive Summary....................................................................................................................................... 3 Industry Analysis ........................................................................................................................................... 3 Threat of New Entrants ............................................................................................................................. 4 Power of Suppliers .................................................................................................................................... 4 Power of Buyers ........................................................................................................................................ 4 Substitutes ................................................................................................................................................ 5 Degree of Rivalry ....................................................................................................................................... 6 Firm Analysis ................................................................................................................................................. 7 Company Strategy ....................................................................................
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...2Resources11 4.Strategy12 4.2 Corporate Level12 4.1. Business Level13 5.Conclusion13 Introduction If we remember a few years ago, everywhere you could see, if on the street, in a restaurant, on the train or at home. You couldn’t avoid meeting little children or even adults playing with a little portable hand-held console. What was that magical thing that seemed to fall just from heaven? And where did it come from? Nintendo DS launched in 2004 by the same titled company Nintendo Co. Ltd. That was the start of a new generation. The company already released distinctly consoles such as the „Gameboy“ where everybody is already supposed to know “Nintendo” all over the world, if this is not the case, now everybody does due to the Innovation of Nintendo DS. An innovation during the period due to the touch screen function who Nintendo has been the first corporation to use this technology in his line. Nintendo DS is able to utilize by both younger generation and elder because of the attached software which for example helped to train the memories of one’s brain. Shortly after 2004 a successful console was released on the market. Nearly each household were storing a Wii console. Also at our homes we used to have that „Wii“. During those periods Nintendo was market leader in the gaming industry. Nintendo has had an appearance on the Media since the beginning of 2011. They released a follower of Nintendo DS which is called Nintendo 3DS in Japan, Europe and the USA. The followers shined...
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...BUSINESS MODEL GENERATION Yves Pigneur Patrick Van Der Pijl Alexander Osterwalder Alan Smith Tim Clark www.businessmodelgeneration.com, EUR 27,60 THE CORE TEAM a core team did the heavy lifting in authorship, design and production of this collaborative effort involving over 400 strategy practitioners from around the world. Lead authors Alexander Osterwalder, Ph.D, and Professor Yves Pigneur, Ph.D., Creative Director & Designer Alan Smith from The Movement, Producer Patrick Van der Pijl of Business Models Inc. and Editor Tim Clark of Hitotsubashi University Graduate School of International Corporate Strategy. www.businessmodelgeneration.com 2 AGENDA 1. 2. 3. 4. 5. 6. 7. 8. 9. BUSINESS MODEL BUSINESS MODEL EXAMPLES MORE... BUSINESS MODEL REVENUE MODEL BUSINESS MODEL BUSINESS MODEL MISC. FRAMEWORK ENVIRONMENT MEASUREMENTS INNOVATION 3 1. BUSINESS MODEL 4 BUSINESS MODEL 5 BUSINESS MODEL A Business Model Of A Company Is A Simplified Representation Of Its Business Logic. 5 BUSINESS MODEL 5 BUSINESS MODEL BUSINESS MODEL “describes what a company offers its customers, how it reaches them and relates to them, through which resources, activities and partners it achieves this and finally, how it earns money.” Dr. Alexander Osterwalder 6 KP KA VP CR CS 2. C$ by Alexander Osterwalder & Yves Pigneur (taken from the book „Business Model Generation“) BUSINESS MODELCH FRAMEWORK KR R$ 7 2. BUSINESS...
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...Trends •The Scenarios & Implications •Conclusion •References A Brief History of Video Games Atari to Wii Introduction (1/2) • Video games have been around since the 1940s. • Over the decades, game machines continuously evolved to become powerful machines capable of stunning visuals and graphics. • In the mid 2000 to 2007, social media, smartphone and tablet technology entered the gaming scene. • Casual games become the norm attracting previously non-gamers into the market. Introduction (cont 2/2) • As the dominant force of the mobile and gaming market, in the next coming 5 years, where does Nintendo see itself competing with threats from smartphones and other gaming platforms taking up its share of the market? • Scenario planning : To make strategic decisions that will be a sound foundation for all plausible and possible future scenarios. Company Profile (1/3) • Founded in 1889 in Kyoto, Japan by Fusajiro Yamauchi. • Manufacturer of Hanafuda “flower” cards • Expanded in 1960s by Hiroshi Yamauchi. • Following the crash of the cards business, Nintendo entered the toy industry upon discovering Gunpei Yokoi, a mechanical engineer. Company Profile (2/3) • 1970: Yokoi teamed up with Shigeru Miyamoto to create games – The Father of Modern Video Gaming, creator of iconic franchises including Mario, Zelda and Pokemon. • The rest is history. Evolution of Nintendo Gaming Consoles Industry Overview (1/2)...
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...in Kyoto, Japan and, decades later, expanded to video game production. Nintendo released its first game console, the Nintendo Entertainment System (NES), in 1985 (Nintendo, 2013). The NES became an instant hit and set Nintendo to be a pioneer in the game console industry throughout the 1990s. Gradual Decline Nintendo enjoyed tremendous success as it continuously released new consoles: Nintendo 64, Game Boy, Game Boy Advance, GameCube, and more. However, the company faced increasing competition in the early 2000s from Microsoft’s Xbox and Sony’s PlayStation consoles and its market share started to decline. In 2003, Nintendo’s share price fell sharply when Sony announced its PlayStation Portable (PSP), threatening the monopoly that Nintendo held on the portable console market (Kendall, 2009). Change in Strategy In an industry that competes based on delivering the latest technology, Nintendo’s newly promoted president, Satoru Iwata, took the company in a new strategic direction to restore the company’s former glory. Challenging the long-time video game market of boys, young men, and “serious gamers,” Nintendo decided to change their strategy and target those outside their traditional demographic: women, seniors, and families (MaRS, 2010). Rather than focus on the latest graphics processors, hardware design, or engine speed, Nintendo took a new “fun and social” approach to gaming and released the Wii console. This new gaming system was based on body motions and...
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...CASE: NINTENDO – DISRUPTOR BEING DISRUPTED PROBLEM: A great empire, like a great cake, is most easily diminished at the edges. Nintendo which was a business leader in gaming consoles is now losing its market to the competitors. In business highs are no guarantee. Nintendo soared high with the WII console but within few years saw their worst fall. Their fall in revenue could be attributed to stiff competition. Nintendo’s 3DS failed to earn the forecasted demand and revenue. Consumer’s preferences moved towards Sony PSP’s and Microsoft Kinect. New market of Mobile gaming led by Apple and Google was unprecedented competition that disrupted Nintendo SITUATION ANALYSIS * Competition: Faced stiff competition from Sony PSP’s and Microsoft’s Kinect. The mobile gaming revolution led by apple and google disrupted Nintendo further. * Lack of Futuristic View: Nintendo’s plans for innovation or expansion were short sighted. They did not plan for the technology surge. Limited view hampered their growth. * Existing business model not functioning optimally: While competitors outsourced their software development and focussed on their competencies working towards disruptive innovation, all Nintendo’s operation were in house. This stunted innovation and growth. Further their target market was casual gamers whose profile didn’t suit the product Nintendo offers. ALTERNATIVES and EVALUATION 1) Shift their target market: It is recommended that Nintendo shifts their target market and...
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...tertainment community. Due to the rise in competition, Sony has to keep on innovating in order to keep attracting current/new customers. Using Porter’s five forces analysis this paper will identify the issues Sony faces in the marketplace. For the sake of simplicity I will focus on Sony’s latest game consoles: the PlayStation 3 and PSP. Porter’s 5 Forces Analysis: Bargaining Power of Suppliers: As Sony is quite a large corporation this means that they also have a considerable supplier database. The advantage being that if there were to be a problem with a supplier for any reason, Sony could easily switch to one of their many other suppliers.1 In order to reduce the risk of a supplier lock -in scenario, Sony Co-Develops both the CPU’s2 and GPU’s for the PlayStation Three (CPU being the Processor and GPU being the Graphical Processing Unit), as well as using their own Blu-Ray technology. As for the games provided for Sony’s PlayStation 3, these game publishers have some say (however relatively little) as there are dozens of such publishers. Therefore the Bargaining Power of Suppliers is: Relatively Low. Bargaining Power of Buyers: Currently there are three game consoles which customers are able to choose from, Microsoft’s Xbox 360,...
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...Management Professor Kellie McGilvary By: Allen Hager Omaha, NE July 29, 2011 Nintendo is now having to compete with Apple with their new 3DS game device and are having to cut prices to be competitive with the iPad, iTouch and iPhone devices. This is very important because, “Nintendo is showing the most acute signs of pain from a wave of technologies on which games have become a central pastime, including Apple's iPhone and iPad and social games on Facebook Inc.'s social network. Those technologies tend to attract a more casual gamer with mobile-game titles like Rovio Inc.'s "Angry Birds" and Facebook games like Zynga Inc.'s "FarmVille" and "CityVille” (Wingfield, 2011). Nintendo is finding out that the marketing of the new 3D device is not what people really want necessarily and do not want to spend $250 on one of these devices. They are lowering the price to $170 and offered free software to those who purchased it at the higher cost. The lowering of the price not only reflects the change in gaming but the bleak and weakness around the world economically. “The world is different today that it has been for every other platform transition in the past,” said John Taylor a videogame analyst at Arcadia Research in Portland, OR” (Wingfield, 2011). This problem with the 3DS is more notable because of Nintendo’s marketing and redefining of video games. While Sony and Microsoft were trying to incorporate Blu-ray players and other items, they were developing the Wii and motion-sensing...
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...Sony Next Generation Portable (NGP) 2011/4/13 BUS 343 EXECUTIVE SUMMARY Recognized as the global leader and responsible for the progress of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) distributes and markets the PlayStation game console, PS2 computer entertainment system, the PSP handheld entertainment system and the PS3 system. Headquartered in Tokyo, Japan, SCEI is an independent unit of business of Sony Corporation, which was founded in 1946 (Sony Corporation, 2011). SCEI, along with its subsidiary divisions Sony Computer Entertainment America Inc. (SCEA) and Sony Computer Entertainment Europe Ltd. (SCEE) develops, publishes and distributes software. It also manages the third party licensing program for these platforms in the respective markets worldwide. The SWOT Analysis examines the internal and external environment that Sony is facing. According to Appendix exhibit C, the market share of Sony’s gaming industry has decreased by 9% after the maturity of Apple’s iPhone. Also, Nintendo has launched its latest product, 3DS. It is necessary for Sony to evaluate these competitors, so we can find the factors that contribute to the decrease. We have come up with two major marketing objectives: increase product awareness and increase market share while still maintain profitable. Through segmentation, we can better identify and group our potential customers. Since consumers have different wants and needs, by segmenting the market...
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...Esmir Hadzic 661035592 Intro to Management 2/4/14 Five Forces Analysis of the Video Game Industry As in every industry, there are five competitive forces that determine the intensity of competition between the different players. These competitive forces are; the threat of entry of a new company in the industry, the threat of substitution by another product, the bargaining power of the buyers, the bargaining power of the suppliers, and rivalry among currently existing competitors. These competitive forces are easily seen in the video game industry, as there is already immense competition in the industry due to the similarities between the few major companies at play. Sony, Nintendo, and Microsoft are the three large players in the present day video game industry. Sony Computer Entertainment Inc. has been a dominant company in the industry for over a decade with the PlayStation 1 and PlayStation 2 platforms; however, it is struggling to stay at the helm of the industry due to the presence of these competitive forces. The threat of entry of a new company in the video game industry is a relatively weak competitive force for Sony. The video game industry is already dominated by three major players (Sony, Nintendo, and Microsoft), thus the possibility of a new entrant in the industry is very low. Nintendo was established well before Sony as a major player, and Microsoft came into the industry in 2001 with the original Xbox. When Sony came in with the PlayStation 1, they...
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