The paper "PESTEL Framework - Computer Games " is a perfect example of a business case study. Every new business which enters the global market has to first analyze the targeted market. For this micro and macro analysis of the environment has to be carried out. This paper is also based on such an analysis. The paper is based on the idea to open a computer games shop on the fact that more and more people are becoming computer literate, own computers at home, and computer games are becoming a hobby for most people, which mean there is a ready market for the services.
This shop would provide outstanding services to all clients. It will base the competitiveness of its services on the sophistication and distinctiveness of the services provided. The business hopes to enter the international market in line with the growth in the use of computers. Microenvironment PESTEL Framework The PESTEL is something extremely important in the globalization process. Since every new venture has to apply a PESTEL analysis before they enter an unknown market. As for this new video game shop it has to also analyze its potential in the video game market of London. Political A lot of factors like tax policies, foreign trade regulations and social welfare policies all have an effect on the video game market of London.
Video games usually affect customers' psyche. Since London is a multicultural city influence the player’ s actions as well and thus they may have a negative effect on peace and law. Thus Government has the power to ban games that they think are unfit for the market. Like they have the right to ban games that promote extreme violence or racism.
They also have the right to rate games according to the age of the customers. However, the government even funds this sector a lot. It gives more than 5 million pounds for its development. This makes London a strong market for video games. The UK games industry is to get a £ 2 million government funding boost. The news follows the coalition government's move to scrap a proposed 20% tax break for UK games companies in last month's budget announcement (Lynch, 2010).
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