...improving their communications to parties internally and externally. There this group is consisted of 3 members and the chosen industry and organization for this report is gaming consoles; Microsoft Xbox. While conducting our research on the context of the industry and Microsoft Xbox, several marketing tools were used to acquire this information. With the utilization of Asteroid Tabulation, we were able to acquire supporting information on consumers. This information would involve the use of the Roy Morgan surveying data base. By conducting marketing research through the use of Asteroid and Roy Morgan resources the group was able to determine and observe formalities, and purchase and consumer behaviour of the customers. Other areas of context of the gaming console industry were analysed, one of the areas included the way Microsoft Xbox has communicated to prospective customers and current customers. In terms of marketing perspective; we will discuss the ideologies and perspective Microsoft Xbox are communicating to their customers. A situation analysis is also conducted in terms of the environment Microsoft and other gaming console company’s face. As competitors also determine the behaviour of how a corporation will behave, therefore to determine decision making in response to competitors, A SWOT analysis is conducted to identify strengths, weaknesses, opportunities and threats. Based on the following information from the context analysis, the report will discuss the analysis...
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...Xbox 360 Defines Today and Tomorrow Robert Gaugh DeVry University Xbox 360 Defines Today and Tomorrow In 2005 Microsoft introduced the Xbox 360 to the world of console gaming; a moment that would define today and tomorrow for the rest of our lives. Microsoft stood out by treading uncharted waters that other competitors and previous consoles failed to explore. With people in mind, innovative heads at Microsoft catered to every gamer’s needs with the release of Xbox 360. By capturing exclusive rights to five game of the year titles, improving the online gaming experience, and remaining on the forefront of cutting edge technology, the Xbox 360 defines today and tomorrow. With big names like Sony and Nintendo ready to knock the consumer right off their feet, Microsoft needed to stand out and shine in a way its competitors couldn’t. The Xbox 360 needed exclusivity, and accomplished this by grabbing the rights to Halo, Gears of War, Fable, Forza Motorsport and Mass Effect. Not only were these franchises game of the year recipients, they specifically were the answer to all the rival gaming successes. Halo was the answer to any first person shooter success on any other console along with Gears of War. Forza Motorsport delivered the simulated racing game that Gran Turismo did for Sony. Fable and Mass Effect, yet different in ways, brought new meaning to the role playing genre by bringing a different approach than what gamers were used to. Microsoft’s decisiveness with...
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...case and gather diverse opinions toward different key points. Those viewpoints can become the foundation for more detailed discussion during further analysis of the case. Small groups of three to five students can be applied as a second discussion format, with each group focusing on a specific issue. In those small groups, students have the chances to share their opinions more successfully with one another, thereby narrowing the scope of the problems before developing viable alternatives or solutions. A two to three person team presentation allows students to participate by preparing a presentation agenda and developing effective communication styles. It also enables experienced students to sharpen their communication skills. Discussion Questions 1 Using Michael Porter’s Five Forces Model as an evaluation tool, is the U.S. videogame industry attractive to Microsoft? 2 What are Microsoft’s chief resources and core competencies? What can Microsoft do to establish unique competitive advantages against Sony or Nintendo? 3 What entry wedges can be adjusted to promote Xbox more effectively and efficiently and bring a stronger “Trojan Horse” to the household? Sample Answers to Assignment/Discussion Questions 1. Using Michael Porter’s Five Forces Model as an evaluation tool, is the U.S. videogame industry attractive to Microsoft? Because external environment has strong impacts on a company’s strategic competitiveness, all companies must analyze it carefully before...
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...Microsoft and the Xbox 360 Ring of Death ------------------------------------------------- Table of Contents Executive Summary ...................................................................................................................... 3 Problem Statement .......................................................................................................................4 Situation Analysis ..........................................................................................................................4 Objectives ..............................................................................................4 Background ............................................................................................5 SWOT Analysis ..............................................................................................................................6 Strengths ...............................................................................................6 Weaknesses ...........................................................................................7 Opportunities .........................................................................................8 Threats................................................................................................... 8 Market Analysis ............................................................................................................................9 Previous Market...
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...XBOX & MICROSOFT’S BATTLE FOR THE LIVING ROOM Teaching Note Case Overview Microsoft, a renowned software company found in 1975, is one of the largest corporations in the world. Since its inception, Microsoft not only established itself as a leader in the software industry, but also succeeded in diversifying into various software related businesses. Today, Microsoft is an eminent name in computer applications, multimedia, Internet service, and movie products. At the turn of the century, Microsoft decided to enter a new market – the videogame industry, and introduced its videogame console – the Xbox. The Xbox business venture presents several challenges to Microsoft. First, Microsoft needs to sell enough units of consoles and videogames to consumers to make its videogames division profitable. Second, as with most its other businesses, Microsoft hopes to attain leadership position in videogames industry. Despite the fact that videogames are a primary form of modern entertainment, hence, presents significant business opportunities, only very few vendors have had the chances of achieving dominance in the industry. Third, through Xbox, Microsoft wishes to evolve from a PC software company into a home entertainment company. The Xbox is an intermediary for Microsoft to sell its thousands of entertainment products and services through both direct and indirect methods. For Microsoft, the battle for the living room is not just a war over a console; it is a war of Microsoft’s...
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...The proceeding marketing research will analyze and describe in debt the XBOX 721X video gaming and system. The marketing team will be conducting its research and assessment on Microsoft Global Corporation and will be focusing on one of its most popular products, the XBOX and its arrival of the XBOX 721X. The Microsoft XBOX721X will be the next greatest game system upgrade to arrive on the market in 2015. It will allow everyone the opportunity to enjoy Microsoft’s XBOX in new dimensions. The team has evaluated many concepts and ideas in the creation of this product. The product will give those that felt video games were only for those that play games a chance to experience gaming, listening to music, and watching television in high quality, high definition viewing. The original XBOX was released in 2001 and was marketed as one of the top gaming systems at that time. As technology developed, so did the XBOX. The XBOX360 was introduced in the mid 2000’s. A new century calls for new things, in 2015, the Microsoft Corporation will introduce the new XBOX721X. Microsoft Corporation Microsoft started as a small project in 1975. Elite members of the project that later became one of the most successful companies in the world were: Steve Wood, Bill Gates, Bob Greenberg, Gordon Letwin, Paul Allen, Marc McDonald, Jim Lane, and Andrea Lewis. Microsoft took advantage of a software need that was created in those years and computer manufacturers also contributed to the success of Microsoft...
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...A Case Study With Sony On Penetration Pricing As Global Pricing Strategy Meaning of Penetration Pricing This is a marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is that customers will buy and become aware of the new product due to its lower price in the marketplace relative to rivals. It can often increase both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs and higher inventory turnover, both of which are positive for any firm with fixed overhead. The tagline “special introductory offer” is the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is, therefore, the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, sometimes lower than the costs too, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely...
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...company in the industry, the threat of substitution by another product, the bargaining power of the buyers, the bargaining power of the suppliers, and rivalry among currently existing competitors. These competitive forces are easily seen in the video game industry, as there is already immense competition in the industry due to the similarities between the few major companies at play. Sony, Nintendo, and Microsoft are the three large players in the present day video game industry. Sony Computer Entertainment Inc. has been a dominant company in the industry for over a decade with the PlayStation 1 and PlayStation 2 platforms; however, it is struggling to stay at the helm of the industry due to the presence of these competitive forces. The threat of entry of a new company in the video game industry is a relatively weak competitive force for Sony. The video game industry is already dominated by three major players (Sony, Nintendo, and Microsoft), thus the possibility of a new entrant in the industry is very low. Nintendo was established well before Sony as a major player, and Microsoft came into the industry in 2001 with the original Xbox. When Sony came in with the PlayStation 1, they completely took over the industry and continued to dominate until 2005. The entrance of Microsoft with their Xbox in 2001 was not a large threat to Sony because the PlayStation was already the video game console of choice for the majority of households. Now in the present industry, there is a high...
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...XBOX 360 Marketing Plan Marketing February 20th, 2010 Mark Lundberg Table of Contents: Part 1: Executive Summary Part 2: Company Description * I: History of the Company * II: Current Objectives Part 3: Situation Analysis * Internal Analysis * Environmental Analysis * Customer Analysis * Competitive analysis Part 4: SWOT Analysis * SWOT Analysis * Porter’s Five Forces Model Part 5: Marketing Objectives & Strategies Part 6: Marketing Strategies * Primary target market & Marketing Mix * Secondary markets Part 7: Marketing Implementation Part 8: Summary & Conclusions Part 1: Executive Summary: The Xbox 360 is a gaming console made by Microsoft, Inc. It is in the middle of its product life, being 4 ½ years old at the time of this marketing plan. The success of the original Xbox made the Xbox 360 a likely success for Microsoft, and it has paid off. With millions of units sold around the world, it has become a huge success. This marketing plan will go over where Microsoft currently is in its marketing efforts with the Xbox 360, and what they plan to do to conquer new markets, reach out to new customers, and expand their product line. Part 2: Company Description I: Brief history of the Company Microsoft was founded in 1975 by Bill Gates and Paul Allen. They started off with selling BASIC, which was one of the first computer language programs. Their first customer was MITS Computer. From there...
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...A Case Study With Sony On Penetration Pricing As Global Pricing Strategy Meaning of Penetration Pricing This is a marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is that customers will buy and become aware of the new product due to its lower price in the marketplace relative to rivals. It can often increase both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs and higher inventory turnover, both of which are positive for any firm with fixed overhead. The tagline “special introductory offer” is the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is, therefore, the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, sometimes lower than the costs too, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely...
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...Market Our target product chosen is the Xbox 360+Kinect gaming console. Launched in November 2010, it held the Guinness World Record for being the fastest selling consumer electronics device from 2010 to 2012 (BBC 2012). This is a good indicator of how the Xbox 360 + Kinect has captured its target market in a growing games industry which promotes family bonding through entertainment. 1.1 Market Share and size of market Currently, Xbox 360 holds 47% share of the overall current-generation console market, with Kinect sales accounting for 19 out of 67 million copies of Xbox consoles sold (Microsoft Corporation 2012). Enabling Microsoft to achieve 13.3% of the current market share in the gaming console industry with the Xbox 360+Kinect. Figure 1. Market share of Xbox 360 + Kinect in the industry. Source: (Microsoft 2012) 1.2 Market Position The following graph depicts year on year sales of the Xbox 360 console against competitors since its inception in 2005. Undoubtedly, the Xbox 360 has garnered the most sales in 2012, characterized by steady growth over the seven years (Microsoft 2012). Figure 2. Console Hardware sales in the US. Source: (Microsoft 2012) 1.3 Company’s principal product in terms of features and benefits Other than the Xbox 360, Microsoft has launched products, which were equal or even more representative of the company. Being the most popular platform, with a 10-year old history, Windows XP Operating System is thus considered to be the principal...
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...non-gamers. The console is cheaper than the others. Innovative controller. The virtual console. The wiiware. * The Wii is for the casual gamers, yet they advertise it like it's for everyone, including the hardcore gamers. This isn't true. Therefore, everyone wants one. it appeals to both casual and hardcore gamers and has tons of casual games like MySims and WiiPlay and than nintendo busts out its killer apps like galaxy and brawl Hmm... innovative control scheme and abigger focus on casual gamers, non-gamers, and women... while continuing to bring out hardcore games * price advertising uniqueness ability for everybody to play Introducing something new to the market - Controller Getting mainstream help - Media (south park, Elderly people playing, helping stroke victims) Helping people loose weight - WiiFit, WiiSPorts Its cheaper than competition Bringing back old gamers. a big thing you should talk about is their family name. for more then twenty years nintendo has been seen as always a good choice. parents knew if they would get their kids a maro game they choose quality. explain their franchises that call to everyone. if you want to seem cool you should qoute that line about mario in that one video of that guy talking to snake explaining how mario is known through out the world. also talk about how nintendo managed to be the best thing in handheld gaming since the gameboy was created and never lost a generation * Nintendo completely changed their look in...
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...Index Introduction ………………………….……………………………………….……3 Industry analysis ……………………………..………………….……...…......4 Competitors strategy ……………………….……………………………………. Microsoft – A differentiator………………………….…......7 Sony – A differentiator ……………………….…………………9 Analysis of competition………………………………………………………11 Nintendo’s strategy …………………………………..……………………….14 SWOT ………………………….…………………………………………………….17 Recommendations …………….………………………………………………18 References ……………………………..………………………………………….20 Introduction The first video game was created in the 1960's. Half a century later, the industry of video games represents a 42 billion Pound industry. The recent significant increase in this industry is due to the growth of broadband, the adoption of more robust wireless networks and phones, and the consolidation of game developers and publishers. This global turnover is divided in two parts: the software component is worth (32 billion pound) and the hardware component is worth (10 billion pound). Some recent analysis shows that there is about 300 millions of players in the world. It is quite difficult to find the exact number because a game or a console can be used by more than one player. The Video Game Hardware market is dominated by three main competitors: Nintendo (49%), Microsoft (30%) and Sony (21%). While the video game software market is dominated by four companies: Nintendo (19%), Activision (12%), Electronics Arts (11%) and Konami (5%). These figures indicate that Nintendo is the leader...
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...| Company Write-up: Xbox 360 | Built for Fun | | Michele Herriman | Principles of MarketingDr. Dennis Pedrick | 4/18/2011 | | Company History The Microsoft Corporation, as many people know, is one of the world’s leading computer software manufacturers. Headquartered in Redmond, Washington, the company is known for developing, manufacturing, licensing, and supporting a range of software products and services for various computing devices worldwide. Established in 1975 by Paul Allen and Bill Gates, Microsoft began developing interpreters for microcomputers. By 1980, Microsoft entered the operating system business after signing a contract with IBM, which resulted in the branding and ownership rights of MS-DOS. By 1984 Microsoft had developed its first version of the operating system Microsoft Windows, and by March of 1986, the company had gone public with its stock. Today Microsoft has expanded to much more than just the familiar Windows Operating Systems, such as Windows 7 and Windows Vista. The company also provides enterprise consulting and product support services, training and certification to developers and information technology professionals. The company offers online information products, such as Bing and MSN, and an online advertising platform for publishers and advertisers. More recent products include the Windows Phone and the Zune digital music and entertainment platform, and application software for Apple’s Macintosh computers...
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...Summary Nintendo entered the video game market in 1979 and has been a top competitor ever since. In 2006, with the release of the Nintendo Wii, they secured their competitive advantage in the video game industry. The Wii was created to establish a new standard in game control, using innovative and unprecedented interface with the Wii remote. The remote’s motion sensor capabilities allowed the user to interact and manipulate objects on the screen by moving and pointing the remote in various directions. It really changed the way games were played. In 2010, they were the market leader of that generation of video console sales growth, ahead of Microsoft and Sony. By the fall of 2010, Sony and Microsoft were starting to gain on Nintendo’s competitive advantage when they came out with their own gaming systems that had innovative controllers along with much better graphics. If Nintendo wants to keep their competitive advantage, they will need to reevaluate their strategies. External Environment If a company does not keep up with changes in the external environment, it becomes difficult to sustain competitive advantages. There are two components to the external environment to analyze. The general environment, which consists of demographic, sociocultural, political/legal, technological, economic and global conditions; and the competitive environment, which includes rivals, suppliers, customers and other factors that may directly affect a company’s success. Nintendo used...
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