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Overview
Infogrames Entertainment SA (IESA) has acquired Hasbro Entertainment to obtain the rights to the Atari name. Infogrames wants to avoid being taken over by a larger software company and they also want to increase their market share and take over industry leadership from Electronic Arts. CEO Bruno Bonnell has decided to implement a name brand strategy whereby IESA will become Atari. Bonnell’s decision was presumably based upon the positive recognition given to the Atari name brand by teenagers, and adults in their 20’s and 30’s. The key issue facing Infogrames is whether name branding is a source of sustainable competitive advantage.
Conclusion and Recommendations
Infogrames’ implementation of a name branding strategy will not be successful for two reasons. First, the following analysis reveals that there are three key success factors for software companies participating in this industry. Infogrames’ acquisition of Hasbro does not help them to better meet any of these three objectives. Second, Infrogames has rationalized the acquisition of Hasbro based on the name branding strategy using the Atari moniker. The analysis, however, reveals that there is no competitive advantage gained on the software side of this industry for name branding. In short, consumers do not appear to make their game purchases with any regard whatsoever for the company that produced the game. As such, the acquisition of Hasbro, and the name branding strategy, will be a failure for ISEA because neither the acquisition nor the branding strategy contributes to the key success factors identified for this industry or to achieving a sustainable competitive advantage.

Analysis
External Environmental Conditions (General Industry): The gaming industry is growing, but it is consolidated, which produces a high level of competition between companies fighting for market share.

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