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Game Industry What is going on in the external environment of the company? The company needs to understand that it has uncomfortable forces in its external environment. The operation of the Japanese game industry in the U.S has been influenced by the emerging game industry in the U.S. This trend has led to the decline of its U.S market share from 50 to 10 percent. It is difficult to control the external forces. It is significant to note that the industry has faced fierce competition from the U.
S companies in the sense that they have developed more attractive and competitive brands in markets, which outshines the products of the Japanese industry. Demographic factors in the U.S have influenced the operation and success of the Japanese industry in international market especially the U.S (Inafune, 2011). The sex, age, and marital status of the American citizens have different attitudes about imported products because they aim at promoting domestic industry than international companies.
Therefore, Japanese game industry needs to merge with American company in order to succeed in the U.S market. In addition, the Japanese industry does not use modern technology like its competitors in the U.S. For instance, Japanese game technology is lurking behind than its competitors in the U.S. It is clear that the technical quality and the user interfaces have been enhanced but some concepts such as the game play and design are the same. This shows luck of originality and innovation. What is their customer base?
The company only commands ten percent of the external market. For instance, in 2002, the company claimed about 50 percent share of global revenues but it declined in subsequent years because of fierce competition, demographic changes, and poor technology. Who are the market leaders? The market leader is a Nintendo company, which is a medium sized Japanese organization with 10 years experience in the computer game industry. Who else might be a competitor?The company might face competition from Senatorendo Company and other companies that operate in the U.S. What are the typical performance indicators for organizations in this sector?
The key performance indicator of the Japanese game industry is attempting to increase the sales in order to avert considerations like whether to measure value of sales (products). The company should adopt modern technology in order to remain in the market. Taking advantage of the new available and emerging technologies is great (Inafune, 2011). The reality is an issue yet to be solved by most of the organizations. The complexity and cost pin out most small and medium enterprises. Organizational goals achieved by aligning business strategy, culture, process and technology in the business environment improve the effectiveness of the organization.
It ensures the balance between the future and the present demands for a sustainable operation of the organization. In a business environment, the degree to which objectives of the organization are achieved can be termed as the effectiveness of the organization. ReferenceInafune, K. (2011). Staying in the game, McKinsey Quarterly. Retrieved 24 November 2013 https://www.mckinseyquarterly.com/Strategy/Innovation/Staying_in_the_game _2828
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