Marketing Strategy for Sony Playstation

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Sony Marketing Assignment

Stefan van der Fluit

Analyse issues in the Company Case from a Strategy perspective, and then discuss one of the issues identified. (50% marks)
Stefan van der Fluit (1122828)
Gaming has been around ever since the invention of computers, being a great form of inexpensive entertainment. In 1993 Sony realized the true potential gaming had to offer and decided that they wanted a piece of the cake; Sony Computer Entertainment was born. A year later, Sony’s released the PlayStation. Ever since then the PlayStation brand has been a true icon amongst the gaming and home en tertainment community.
Due to the rise in competition, Sony has to keep on innovating in order to keep attracting
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Threat of new Entrants:
The possibility that there will be a new entrant into the game -console industry is quite unlikely, for many reasons. The technological know -how is quite high, and would require significant capital to invest into, in order to be able to compete with current competitors; the fixed costs to produce such consoles would also be quite high (When
Sony first launched the PS3 the manufacturing costs amounted to roughly 800 USD per unit, meaning Sony had to accept losses on each console sold. Now however they managed to reduce the costs by 50%)8. Sony also holds an impressive portfolio of patents, which would make it hard for any new comer to compete without making some sort of arrangement with Sony.9 Since the PlayStation brand has been around for over fifteen years, Sony has the advantage of long -term branding as well as high customer loyalty towards their brand.10 Therefore the threat of new entrants is: Relatively Low.

Rivalry within Industry:
As there are currently three companies in the game -console market, the industry growth rate is quite low, however now with the threat of mobile gaming , this rate has slowed down even more, reaching a saturation point in 2009. 11



(Takahashi, 2011)
(WILSON, 2008)
(Städtler, 2010)

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