42581040-Responding-to-Wii-V1 - BASM 580A Responding to the...

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Responding to the Wii Case Click to edit Master subtitle style November 15, 2010 November 15, BASM 580A – Responding to the Wii Case Analysis and Recommendations Presented By: Davin Luke, Jesse Goranson, Kelly Moss, Jorge Lobo, Kyler Tebbutt, Howe Gu
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Responding to the Wii Case 22 Executive Summary {F AFDD79-C572-4D86-8A32-359BDD6406E1} Situation {6EDA7DF3-D7 7-4EF0-8FD5-82E796CD3547} able to capture market share from traditional and non-traditional players in the game console industry {0 31 47B-8EC6-4187-8F C-5 B64C C4C38} Complication success and ensure its viability in the long term within the video gaming industry {919505B4-068 -4740-A1BE-C3FE3E967234} Resolution ppeal to a broader demographic. Sony should also differentiate by creating network externalities via online gaming capabilities. tomers interacted with games – the intuitive nature attracted non-traditional customer segments also outselling Sony in volume (2:1 ratio), beating it in every month since August 2008 except one periority to establish leadership position in other media delivery channels
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Responding to the Wii Case 33 Historical Positioning Strategy In recent dynastic cycles Sony has dominated the gaming console industry. However, with the introduction of the Nintendo Wii, Sony’s competitive position has been dwarfed by its inability to penetrate non-traditional customer segments. {6 797475-CF E-4B30-98DD-0C9057358716} {F6C14560-C38E-43BC-BC 2-1D98B60D1E94} {A162CB49-8 C6-40 E-B097-6DCF 232372A} 1980 {5386471A-D415-4FBA-9F10-B39C76747467} 1970 Casual Serious Mixed Ata ri Ninten do Fairch ild Col eco N E C Seg a Son y Ninten do Micros oft
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Responding to the Wii Case Hardware: Low Many suppliers Low switching cost Software: High R&D costs Network Brand equity Aligned developer High PS3 & XBOX core player Wii causal player & core player High Many (cheaper) options Low switching costs Low Other living room entertainm ent: TV, PC & Movies 44 Current Industry Assessment – Porter’s 5 Forces Framework Although Sony has few competitors (Microsoft & Nintendo) due to high barriers-to-entry and startup costs, buyers and suppliers (game developers) have high bargaining power and low switching costs – they can easily choose between console systems that provide the most innovative attributes.
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42581040-Responding-to-Wii-V1 - BASM 580A Responding to the...

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