Valve Corporation Final Project Essay

4190 Words Apr 25th, 2014 17 Pages
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Introduction ……...………….……..………..….……………………………………………………………………………….. 3
External Analysis …………….…………….…………………………………………………………………………………….. 3
PESTEL Analysis ……………….……………………………………………………………………………………………. 4
Political Factors ……………………………………………………………………………………………………. 4
Economic Factors …………………………………………………………………………………………………. 4
Socio-Cultural Factors ………………………………………………………………………………………….. 5
Technological Factors ………………………………………………………………………………………….. 6
Environmental Factors ………………………………………………………………………………………... 7
Legal Factors ……………………………………………………………………………………………………….. 7
Five – Forces Model ……………………………………….……………………………………………………………. 8
Supplier Power ……….………….…………....………………………………………………………………… 8
Buyer Power
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Currently, Steam has over 6.6 million users and has an estimated share of 50-70% in the digital distribution PC market (Mudgal). Valve is a U.S. based company that resides in Bellevue, Washington. The founder of Valve, Gabe Newell, is currently the president and owner of more than 50 % of the company. Newell, has an estimated net worth of around $1.5 billion dollars. The analysis of this report will demonstrate that the Valve Corporation is extremely successful and continues to dominate the video distribution industry.

External Analysis The following segments of this study will be using the PESTEL analysis and the Five-Forces Model to examine Valve Corporation as a gaming industry giant. The PESTEL Analysis will feature the political, economic, socio-cultural, technological, environmental, and legal factors of the company. Additionally, The Five-Forces Model will include how the supplier power, buyer power, degree of rivalry, the threats of new entrants and substitutes have and will influence the Valve Corporation.

PESTEL Analysis

Political Factors The Valve Corporation enjoys numerous benefits most traditional companies have only dreamt about achieving. Being a privately owned company, employees enjoy the freedom of not having any managers overlooking their shoulders constantly. The 250 employees who work at Valve decide which projects they want to work on and for whatever duration

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