Essays on PESTEL Framework - Computer Games Case Study

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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).

References

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Baumol W and Blinder A (2006). Economics Principles and Policy. Abhishek Publications

Daniel Irish (2005). The Game Producer's Handbook. Premier Press; illustrated edition

David Wesley, Gloria Barczak (2010). Innovation and Marketing in the Video Game Industry: Avoiding the Performance Trap. Gower

Farago, P. (2010). Apple iPhone and iPod touché capture U.S. Video game market share Retrieved from http://blog.flurry.com/bid/31566/Apple-iPhone-and-iPod-touch-Capture-U-S-Video-Game-Market-Share on 9 January 2011

Francois Dominic Laramee (2005). Secrets of the Game Business. Charles River Media; 2nd Revised edition

Hongju Liu (2010), “Dynamics of Pricing in the Video Game Console Market: Skimming or Penetration?” Journal of Marketing Research, 47 (3), 428-443.

London's population (2010). London's population and the 2011 Census - London Regional Committee. Retrieved from http://www.publications.parliament.uk/pa/cm200910/cmselect/cmlonreg/349/34907.htm on 9 January 2011

Lynch Gerald (2010). UK games industry to receive £2 million funding boost. Retrieved from http://www.techdigest.tv/2010/07/uk_games_indust.html on 9 January 2011

Tait Leonie (2004). Europe’s leading video game market. Retrieved from http://www.euromonitor.com/UK_Europes_leading_video_game_market on 9 January 2011

Weber, T. (2010). Game industry renters new level. Retrieved from http://news.bbc.co.uk/2/hi/6523565.stm on 9 January 2011

•Korotayev A., Malkov A., Khaltourina D., 2006. Introduction to social macrodynamics: compact macromodels of the World System growth. M.: URSS. 128 p.

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