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BSAD 184. Discussion Session 2. Agenda. Announcements Strategy Alternatives Exercise The next case Open Q&A. Announcements. Discussion Forum Attendance Office Hours When in doubt, e-mail! Xbox case. Strategy Alternatives: Company Information. SquareSoft
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BSAD 184 Discussion Session 2 Anthony Griffin
Agenda • Announcements • Strategy Alternatives Exercise • The next case • Open Q&A
Announcements • Discussion Forum • Attendance • Office Hours • When in doubt, e-mail! • Xbox case
Strategy Alternatives: Company Information • SquareSoft • Entertainment software developer and publisher • Specializes in the role playing game (RPG) genre • Creator of the popular Final Fantasy series • Enix • Entertainment software developer and publisher • Specializes in the role playing game (RPG) genre • Creator of the famous Dragon Quest series • Both companies have merged to form Square Enix
Strategy Alternatives: Company Information (2) • EB Games • Entertainment software specialty retailer • Sells new software and gains large profits from buying and selling used software • Gamestop • Shares an almost identical business model • In 2005, GameStop acquired EB games and all of its retail stores
Strategy Alternatives: Company Information (3) • Acclaim • Former entertainment software developer and publisher • Strong performance during the 1990’s • Current generation games sold extremely poorly • Recently the company was forced to sell all of its assets (office buildings, property, unsold product, etc.)
Strategy Alternatives: Company Information (4) • Microsoft - Xbox • Relatively new player in the entertainment software industry • Intentionally incurred a financial loss with the original Xbox in order to gain market share and brand recognition • Attained second largest console market share in the U.S
Strategy Alternatives: Company Information (5) • Nintendo Game Boy • Over 15 years of continuous improvement • Game Boy • Game Boy Pocket • Game Boy Color • Game Boy Advance • Game Boy Advance SP • Game Boy Micro • Nintendo has dominated the portable gaming market for over 15 years
Strategy Alternatives: Company Information (6) • Ford • Owns or has vested interest in Volvo, Mazda, Jaguar, Land Rover, and Aston Martin
Your Task • Using the previous information and your own knowledge, select the strategy alternative(s) that best describes each of the following situations
Situations SquareSoft and Enix merge Gamestop acquires EB Acclaim sells all assets Microsoft Xbox Nintendo Game Boy Ford’s acquisitions Southwest goes international (hypothetical) United Airlines declares bankruptcy Strategies Vertical Integration Horizontal Integration Market Penetration Market Development Product Development Concentric Diversification Divestiture Liquidation Retrenchment Your Task
Suggested Answers • SquareSoft and Enix merge to form Square Enix • Horizontal Integration • Gamestop acquires EB Games • Horizontal Integration • Acclaim shuts down and sells all assets • Liquidation • Microsoft grows market share with original Xbox • Market Penetration • Nintendo evolves the Game Boy • Product Development • Ford’s acquisition of other car companies • Horizontal and Vertical Integration • Southwest expands internationally (hypothetical) • Market Development • United Airlines declares bankruptcy • Retrenchment
Additional Strategies • Concentric Diversification • Selling new but related products (Dell) • Conglomerate Diversification • New and unrelated products (Gillette/Duracell) • Divestiture • Selling parts of an organization
The Next Case: Heineken • Part I (Internal Analysis) • Perform a S.W.O.T. Analysis for Heineken • Part II (External Analysis) • What is the structure of the global beer industry (Porter’s 5 Forces Analysis)? • What recent changes have impacted the structure?
Open Q&A Questions, Comments, Concerns?