Introduction to PG Seminar Topic on Strategic Management:

Threat of new entrants, the video game industry is leading now days, with three other firms that dominate in the industry with comparable market share. Existing industries provide high supply in fields of research, advertising and manufacturing. It will be difficult for the new competitors to enter into competition without sufficient market share.

Customer switching costs are low; customer is easily attracted to new models developed by consumers and game developers.

Because of independent game developers, the benefits obtained are very high. Games are developed specially for each console. As same game cannot be run on multiple consoles, developing a game involves a high cost so the developers will not afford of developing for new entrants. Therefore consumers choose among existing players so the life of new comers is difficult.

Even retail and wholesale channels also limit its services to new comers. Branded companies sell their products in stores and via channels.

To compete with the existing competitors the new comers need to invest in global distribution channels and even the new comers have chance of selling the products online via websites.

Nintendo has laid a target with the help of Wii console than with others in the seventh generation. Buyers are very sensitive towards price while choosing gaming console.

And the measures of Nintendo’s have overcome several barriers. Nintendo was responsible for consumers who are informed and the game what they play or watch is left to themselves.

The paper is about present competitors, their business and their threats they are facing from competitors and also the scope of new comers in the business. 

Download  PG Seminar Report on Strategic Management.