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Sony Playstation

CHELSEA ELDREDGE | JAN CORRO | STACY MAENG . Sony Playstation. BRIEF HISTORY. About the SCEA. KEY ISSUES. Extremely intense competition Top competitors: Microsoft Xbox Nintendo Wii Unstable economy Lack of marketing: Some advertising on systems N eeds more focus on games. SWOT.

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Sony Playstation

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  1. CHELSEA ELDREDGE | JAN CORRO | STACY MAENG Sony Playstation

  2. BRIEF HISTORY About the SCEA..

  3. KEY ISSUES Extremely intense competition Top competitors: Microsoft Xbox Nintendo Wii Unstable economy Lack of marketing: Some advertising on systems Needs more focus on games

  4. SWOT STRENGTHS • Established well-known brand • Competitors raise prices based on new Sony PS releases • Strong, lasting loyalty • High consumer demand creates obstacle for new entrants • Best BluRay player on the market • Innovative system packaging WEAKNESSES • Starts at most expensive console • High-priced products • Lack advertisement of products like new games • Many current competitors • Need to create new, younger consumer demographic

  5. SWOT OPPORTUNITIES • Powerful brand equity • Rapidly growing industry • Expansion • Low production cost • Strong influence over suppliers • Maintain advanced technological standing, stay ahead of the game • Larger memory space than competitors THREATS • Economical standing • Consumers cutting back on entertainment products • Intense competition: Xbox, Wii, Dreamcast • Arcades are less popular than previous generation, dyingindustry • Xbox rising fast with innovations like Kinect • Piracy & hacking

  6. 5 TESTS OF A GOOD STRATEGY 1 Value Proposition • Built-in Wifi • Cheap entertainment & social • Online play • Best & cheapest BluRay • Fastest loading time • HighDef playback • Prime DVD upscaling • Picture quality • Larger memory space • Up-to-minute latest firmware updates • Supports all audio formats • Studio quality • Finest gaming environment • Luxury system upgrades: memory, speed, etc • Newest HDMI interface • Flexible card reader • Best bang for your buck • Most popular gaming console

  7. 5 TESTS OF A GOOD STRATEGY 2 DIFFERENT, TAILORED, VALUE CHAIN • Free online play • Competitor Xbox Live charges $50.yr • Less compatibility issues with BluRaydiscs than competitors • Innovative systems packages • New models released by competitors aren’t that different from those already existing • Game selections • Free downloadable demos available to players even before purchasing games in PS Network 3 TRADE OFFS • Last model launch was most expensive console because of all its new features • Due to an immense package.. • Headset not included • Xbox provides set with each console • HD cables not included • Also provided with Xbox • No rechargeable battery • Download games & movies • Tends to be slow, online glitches due to overload of player because it’s free • Vulnerability to hacking • Not compatible with other games

  8. 5 TESTS OF A GOOD STRATEGY 4 REINFORCING ACTIVITIES • Price cuts take place as the new, cheaper PS3 Slim is launched • Short term: Profit margins take a hit • Long term: Smart decision • Extended value proposition so “consumer wins” • Many pros than cons for consumers, so in any situation the consumer would always be satisfied • New profits will come from loyalties & licensing • Will be able to capture bigger market share • Launched PS2 “Greatest Hits” series • PS2 already has established experience & familiarity • Classics are dirt cheap • Invites new & existing players • Easy access for everyone to purchase 5 CONTINUITY • “Next gen gaming platform” • Maintains advanced technological standingto stay ahead of the game • Forward compatibility • Accessories, add-ons, upgrades, updates • While new players buy consoles, existing players purchase add-ons & are kept on the market • Powerful brand equity • Extremely stable workforce

  9. PORTER’S 5 FORCES

  10. Throughout their rise, fall, & comeback… Sony PS currently has an intense competitive rivalry.

  11. RATIO ANALYSIS • 2008 sales & operating revenue was ¥8,871,414 Yen in millions • Sales dropped in 2009 to ¥7,729,993 &2010 to ¥7,213,998 • Sales have not increased despite their new products • 2011 sales & operating revenue was ¥7,181,273 • Sales & operating revenue for 2012 has been the lowest ever to ¥6,493,212 • Sony PlayStation profit ratios from 2008 to today are 4.23% - 4.85% - 5.20% - 5.22% - 5.77% respectively

  12. RECOMMENDATIONS • Have more ads • Have more variety of games • With variety of games at cheaper cost, sales are likely to increase

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