Sony, Microsoft and Nintendo in Video Game Industry - Literature review Example

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This paper "Sony, Microsoft and Nintendo in Video Game Industry" took into consideration the information offered by varied management tools such as a SWOT, PESTLE, along with a macro and micro-study of Sony’s PS3, Microsoft’s Xbox 360 and Nintendo’s Wii as the means to analyze the sector…
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Download file to see previous pages At present, Nintendo has captured the lead in unit placements, but over the long haul, if it cannot increase its number of titles, the financial clout of Microsoft and Sony under their more expensive console and games will wrest market share away. In terms of understanding how the varied tools referred to in this report fit together De Wit and Meyer (2010, p. 52) advise the strategy process includes strategic thinking, strategy formulation as well as strategic change. The deductions made herein come from the Grant (2010) case study and other sources were made from the analysis of corporate actions and findings.  According to Wit and Meyer (2010, p. 75), firms rarely if ever publish their formulated strategies due to competitive reasons thus the deductions made were a result of an analysis of many factors. As brought forth herein, the paper represents the strategic process companies generally employ. In looking into the varied tools used to analyze the video game industry in this report, it must be remembered that these all fall under the auspices of strategic management as represented by the decisions and paths taken by the three companies discussed. In defining Strategic Management the Small Business Advancement National Centre (2010) advises it “… entails three ongoing processes: analysis, decisions, and actions”. In furthering the understanding of the term Burgelman et al (2008, pp. 21-28) tell us that it represents the analysis of varied strategies goals such as mission, vision, and objectives as well as the analysis of the organization’s internal and external environments. The variables and considerations that managers utilize in making strategic decisions manifest itself in the future performance of a company and thus explains why some firms outperform others (Volberda et al, 2010, pp. 76-81). Successful managers utilize strategic management to ascertain the variables of the competitive market and trends for the future under a process that looks visually like the paper presents. In elaborating further Hill and Jones (2008, p. 26) advise that “The formal strategic planning model has been characterized as the fit model of strategy making because it attempts to achieve a fit between the internal resources and capabilities of an organization and the external opportunities and threats in the industry environment”. This report brings this forth through the analysis of the actions of Sony, and Microsoft that opted for a high technology approach in their latest console models, whereas Nintendo choose a user-friendly less sophisticated approach. Whilst Nintendo’s fiscal position necessitated the preceding, its management considered the ramifications of a broader market appeal outside of the traditional gamers as represented by young males, to include young adults and females (Grant, 2010). As shall be shown herein, this wider appeal base resulted in Nintendo assuming the market lead in console units sold as a result of the aforementioned and simplified controller operations and a lower price (Grant (2010). The microenvironment represents considerations inside the industry as represented by suppliers, distributors, customers as well as competitors (Hemlin et al, 2004, pp. 12-16).  ...Download file to see next pagesRead More
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