Tuesday, October 14, 2014
Week 2 EOC: Boston Consulting Group - Video Games
With market shares for gaming console being extremely competitive, the "console wars" was only limited to two separate consoles. These consoles were Microsoft's Xbox One and Sony's Playstation 4. However, these wars were competing for the majority of only 50% of the entire market. The majority share holder in the market is Nintendo. Most people would not think so at a glance but, Nintendo currently has four consoles in the current market. Nintendo is a cash cow, with Microsoft and Sony competing at dogs. "Cash cows are low-growth,
high-share businesses or products. These established and successful SBUs
need less investment to hold their market share. Thus, they produce a
lot of cash that the company uses to pay its bills and to support other
SBUs that need investment." - Marketing: An Introduction. Nintendo seems to have a smart business model by marketing consoles in different formats that do not directly compete with themselves but only with other game and console makers.
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