The paper 'Video Game Console Issues' is a wonderful example of a Management Case Study. This report has been designed to provide readers with a thorough understanding of the analysis of the video game console industry in the United Kingdom. The report has been crafted in a manner to include two different segments. Firstly a macro or environmental level analysis and secondly a competitive analysis of the video game console industry in the United Kingdom. The report initially begins with a complete discussion on the environmental analysis of the video game console industry in the UK which for better understanding has been explained by the help of a PESTEL analysis to figure out the different macro-level factors which impact the video game console industry.
It is to be further noted that the analysis is done on the basis of the complete industry and not specific to a particular organization or firm. The report in its second part looks to further explain the findings from the environmental analysis by concentrating upon the competitive analysis in the video game console industry. To ensure easy and in-depth analysis of the competition in the aforesaid industry, Porter’ s Five Force Model has been used as a strategic tool along with identifying three giants in the video game console industry which are Sony, Microsoft, and Nintendo and making a competitive analysis of the mentioned organizations through recent facts and figures. Lastly, the report provides a conclusion to the overall discussion so as to ensure both practical and theoretical understanding of the entire topic under study. Environmental Analysis Before looking into the environmental and competitive analysis of the video game console industry it is first important to understand some facts about the video game console industry.
The video game console industry is a broad market which comprises of all video games which are used in conjunction with consoles along with its all associated hardware comprising of consoles, peripherals, and accessories like different cables, memory cards, and gamepads. The video game console industry in the United Kingdom has gone through a series of technological changes along with significant growth. Even during the economic downturn, the global video game console industry was successful in maintaining a growth of 23.7% in 2008 which itself highlights the immense opportunity in this industry.
Nintendo, Sony, and Microsoft are among the market leaders in the global video game console industry occupying over 70% of the overall global market share in the industry. Let us now have a look at the environmental or macro-level factors which affect the video game console industry in the UK which has been explained through the help of PESTEL analysis to ensure coverage of all factors which could impact the industry. 2.1PESTEL Analysis PESTEL analysis is composed of different factors like political, economic, social which includes legal and cultural factors, technological, environmental, and legal factors that externally affect an organization in a particular industry and are those factors that are beyond the control of any organization.
However, such factors can in no sense be overlooked as the impact of the same can be so serious that it may eventually lead to the shut-down of larger giants operating in any industry.
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