The strength of competitive forces in the video game industry The industry‘s driving forces The position of the leading competitors as indicated by a strategic group map Swot Analysis Competitive strength assessment Recommendations

Rivalry among competing producers — a strong competitive force.

The potential entry of new competitors — a weak competitive force.

Barrier bear substantial early losses accumulate a sufficient installed base reap the benefits of game licensing

Competitive pressures from its substitute products — a moderately weak competitive force

Bargaining power of suppliers — a moderately strong competitive force

bargaining power still is not considerable Only a few big manufacturers in those field Fierce competition in the same domain increases their desire to sign contracts with console makers

Bargaining power of buyers — a strong competitive force

Resellers bargaining power Competition among major console makers pushes them to expand their sales channels in large resellers like Toys “R” Us and Circuit City

The strength of competitive forces in the video game industry The industry‘s driving forces The position of the leading competitors as indicated by a strategic group map Swot Analysis Competitive strength assessment Recommendations

Driving Forces Buyers and Usage Internet Technology Entry or Exit Policy Changes Product Innovation Cost and Efficiency

The strength of competitive forces in the video game industry The industry‘s driving forces The position of the leading competitors as indicated by a strategic group map Swot Analysis Competitive strength assessment Recommendations

Overall Cost to Players of Video Games Arcade Operators Low (Coin-operated Equipment) Medium (Video Game Consoles) High (Personal Computers) Sony, Sega, Nintendo, Microsoft, etc. On-line Game Providers including MSN Gaming Zone, American Online, Pogo.com, etc. Publishers of Games on CD-ROMs Many Some One Distribution Channels Strategic Group Map

SWOT Analysis

Opportunity Strength Weakness Threat

Strength Innovation 'play together'

Opportunity Strength Weakness Threat

Not a true "home hub" Not powerful enough Weakness

Opportunity Strength Weakness Threat

Opportunity Industry: fast developing

Opportunity Strength Weakness Threat

Threat Competitors Suppliers

The strength of competitive forces in the video game industry The industry‘s driving forces The position of the leading competitors as indicated by a strategic group map Swot Analysis Competitive strength assessment Recommendations

Technology Manufacturing Distribution Marketing Skills and Capability Key Success Factors

Weighted Competitive Strength Assessment

Strategic Issues Core: the R&D department of game, graphics dealing, storage space etc. Differentiation Strategy Developing a particular game related to a specific customer’s demand of a certain region.

Recommendations

Recommendations