The competition in the gaming industry can be termed as oligopolistic competition as there are few major players and many buyers. The major players have maximum market share and maintain prices through a mutual understanding or by price leadership. They also have the advantage of economies of scale. Nintendo- the most important and major leader in the field of gaming. The best known in the industry and has survived the longest and has the maximum market share. Some of its products include Game Boy, Game Boy Advance, Game Boy Advance SP, Game Boy Micro, Wii, etc.
[...] Videogame industry revenue in the US and Canada will grow at an average rate of 5.8 per cent annually for the next five years and will outpace all other forms of entertainment, says PricewaterhouseCoopers. In a recent report, the firm said that it expects the videogame industry to generate USD 17.2 billion in sales in 2009, and grow up to USD 21.6 billion in 2013. By comparison, the music industry is expected to decline 4.4 per cent annually to USD 7.2 billion in 2013, films will rise 3.4 per cent a year to USD 45.1 billion and TV subscription fees will grow 5.4 per cent annually to USD 97.3 billion. [...]
[...] As there is stiff competition among the top players as well as smaller low cost players, the suppliers are plentiful and if the company wants to remain at TOMR (Top Of Mind Recall), they need to pay careful attention to the wants and needs of the buyers or consumers. SUPPLIERS Bargaining power of suppliers- The suppliers are equally strong as there are few suppliers supplying too many. In the matter of substitutes though the suppliers have less bargaining power as they are many substitute products readily available. [...]
[...] The PESTEL factors are- Political Economical Social Technological Environmental Legal Competitive In the current discussion of the Sony Play Station Portable (PSP) and its further variants, the most important factors PESTEL-C which have an impact are as follows (in order of importance)- Technology & Competition Economic & Social Environmental SWOT ANALYSIS FOR NINTENDO Strengths- The brand name of Nintendo Product features and product range Design of the product, appearance and lesser price in comparison to Sony PSP range Light weight and earliest handheld gaming console Variety of games options available with each upgraded version Weakness- The games available [...]
[...] Industry drivers- The major driving forces in this industry are technology and product innovation over any other factors as they are the most important instruments the companies have to take advantage of and to better the others, in order to maintain and better their own positions. PORTERS 6 FORCE MODEL PORTER'S 6 FORCE MODEL POTENTIAL ENTRANTS- Threat of new entrants It is very important to achieve economies of scale in this industry as there would be large scale production as it is an entertainment product. [...]
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