Situation Analysis For Microsoft Xbox

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Situation Analysis The brand we represent is Microsoft Xbox. Below is a situation analysis for Microsoft Xbox as well as trends and driving forces for the last few years. Industry Analysis: Bargaining Power of Suppliers The bargaining power of suppliers for this industry is Low to Medium. Nintendo, Sony, and Microsoft respectively, are the world’s largest players in the video game industry (Euromonitor, 2014). With their sizes, these companies create bidding wars between suppliers for their business lowering the power that suppliers hold. The ability for suppliers to bargain simply on technology is weak, however the price is another matter. For example, the Xbox One costs $471 with a retail price of $499, giving it little room for profit…show more content…
“(Statt, 2014) Threat of New Entrants Threat of new entrants is very high in the gaming industry. Open source gaming such as Ouya and Nexus Player are newcomers coming to compete in the industry. Ouya is an inexpensive system that lets users play countless of games from their android operating system and enables developers to create games easily (Ouya, 2013). While Nexus Player is a TV console operated by Android that lets users play games and movies (Crossley, 2014). Rivalry Global Video Game Console Industries must try to maintain a sustainable competitive advantage through innovation such as creating an upgraded version of the game every year or increase their on and off line presence to better satisfy their customers. There are many competitors in the Video Game industry that include PlayStation 3, Xbox 360 and Wii. These gaming consoles compete in terms of price, durability and loyalty. With Intensity Rivalry being a major determinant of competitiveness, video game companies work towards dominating the industry as well as gaining the major part of the industry profit pool. (Blackwell, 2002) SWOT Analysis Strengths The Xbox One, being one top competitors in the gaming console industry has many features that differ from other gaming consoles. One main feature is the Xbox Live which is an online service for the Xbox console allowing an individual

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