Based on the case study, Sony has had problems with their production which gave Microsoft the lead to come out with Xbox before PS3 by Sony. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
One of the biggest forces in gaming industry would be the bargaining power of buyers, or customers. Therefore, the PC industry is not highly concentrated. In this analysis we will see how these five forces relate to the video game industry, how strong each force is, and answer the question of whether it is an attractive industry for Sony to be in, in They erode the market share of the PC.
In this case, firm rivalry is the strongest out of all five factors. Now there are three big companies in gaming industry and no space left for the others, because of Microsoft and Sony, the most advanced gaming experience out there, enter the market and become almost unbeatable opponent.
They are increasingly functioning like computer. Smart phones and tablets are the substitute of the PC. While they have both succeeded in producing incredible consoles, they have fallen behind Nintendo in the most important area, which is amount sold.
The big PC manufacturers have established strong relationship with it distributors, which make it difficult to access to the distribution channels. In the video game industry, rivalry among competitors seems to be driving force. These elements not only show the state of company but also why some of them are so successful then the others.
Everyone wants to have the best and most popular console. The case of study did not discuss substitute products in general, but one product that could be seen as a substitute is PC games, in which Microsoft was formerly involved with.
Which then lead companies like Sega, Sony, and Microsoft develop faster and more realistic games which lead to side accessories such as dvd players and internet accessible. The five forces are customers, entrants, substitutes, supplies, and the nature of rivalries.
While the Wii is not the most powerful console, it was able to produce innovative capabilities, in order to appeal to a much more board fan base, and not just the traditional gamer.
Whereas Nintendo went towards more user friendly for all ages, in which has now lead them to dominate the video game industry based on sales and income. Focus on the people all ages brought to Nintendo success and big sharks such a Microsoft or Sony could only be angry.
The Economies of scale is large. Another substitution is advanced game devices, like Play station and X-box.
That just proves how important the customers is, and that the Wii did so well because it satisfied the customer, and not just met certain computer specs.
There are two major suppliers of hardware in PC industry. None of them dominates the market.
As previously discussed, Nintendo has always put up good numbers because of the ease of use in their systems, and the wide fan base they have attracted. So in terms of supplies, if a supplier raise their products costs the company that would be receiving these parts would have to increase their prices which in return may turn off certain buyers away from buying their product.
Furthermore, large economies of scale require intensive capital investment The PC industry has already entered the stage of maturity, meanwhile, the production differentiation is low and customers are more sensitive to the price.
The barriers that were hit when entering the gaming industry are internal policies of company marketing changes and economics scale. Based on the case study, there was not sufficient evidence to do a full analysis on the gaming industry. Though they are highly concentrated industry, but they compete with each other for the market share.
Microsoft is the dominant supplier of software and its OS, therefore, they will exert some pressure to their buyers. More essays like this:The Five Forces Analysis on Gaming Industry Essay Sample. Every man in the business uses five forces in order to progress in company’s industry. The five forces are customers, entrants, substitutes, supplies, and the nature of rivalries.
These elements not only show the state of company but also why some of them are so successful then the others.
Essay Porter 5 Forces Analysis of Computer Industry Porter’s five forces analysis of the Personal Computer (PC) industry In his article “The five competitive forces that shape strategy“, Michael Porter () updates and extends his “five forces” framework he first introduced in and which has influenced the academic and business research for.
Porter's Five Forces Model Porter's five forces analysis is the structure framework for industry analysis and business strategy development. (Porter, M.E. ) Using Porter's five forces analysis is a way to figure out the different firms competition levels and force of said "attractiveness" of a market.
Porter 5 Forces Industry Analysis of the Pc Industry. Porter 5 Forces Industry Analysis of the Pc Industry is an analysis model that helps the industry to develop an ideal business strategy. It employs the use of five forces that have been widely identified to rate, or categorize an industry as highly competitive.
The PC manufacturers focus on the reduction of cost rather than differentiations of the products. By PC manufacturers’ net profit margin was 5%(excluding apple).
The low profit margin causes the intense competition among the PC manufacturers. The growth of the PC industry grows slowly, because the appearance of the tablets. PC INDUSTRY ANALYSIS.
By using Porter’s 5 Forces model, the global PC industry can analyzed to get better understanding for the attractiveness of industries, success determinates and the driving forces. As figure shows, five forces are able to influence the decision making on whether to enter or invest further into PC market.Download