Porter 5 Forces Analysis Video Game Sector

An analysis of how is the video game industry

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Porter 5 Forces Analysis Video Game Sector by Mind Map: Porter 5 Forces Analysis Video Game Sector

1. Threat of substitute products or services

1.1. Smartphones and Tablets

1.1.1. HDMI Connection

1.1.1.1. Playing games on the big scream

1.1.2. New range of applications targeted for gamers

1.1.3. Risk due to similarity of price

1.2. Computers

1.2.1. Games offered for both platforms

1.2.2. Quality of graphics processing is superior than the Video Games market

1.2.3. Higher price product

1.3. Minigames

1.3.1. More affordable price

1.3.2. Lower graphic performance

1.3.3. strength in the children market share

2. Threat of new entrants

2.1. High level of capital requirement

2.2. High entry barrier

2.2.1. Patents

2.2.2. Rights

2.3. EX: NVIDIA -Project Shield

2.3.1. Access to distribution

2.3.2. Established Brand

2.3.3. Brand Equity

2.3.4. The fact that NVIDIA is already established in the market for graphics processing helped it to get into the video game industry

2.3.5. Patent - Processor TEGRA 4

2.3.6. Sistem Android

2.3.7. Wi-Fi

2.3.8. High level ofcompatibility

2.3.8.1. PCs

2.3.8.2. Smartphones

2.3.8.3. Tablets

3. Bargaining power of customers

3.1. Bargaining leverage - Low/None

3.2. RFM analysis

3.2.1. Recency

3.2.1.1. Big Picture - The costumer are buying less smartphones and tablets, because of the release in the fourth trimester of PS4 and Xbox 720.

3.2.2. Frequency

3.2.2.1. Buy once in years. PS. Much of the profits come from the game selling.

3.2.3. Monetary Value

3.2.3.1. High

3.3. Buyer information availability - High

4. Bargaining power of suppliers

4.1. Low power of bargaining

4.2. Products with high added value

4.3. Established products on the market

4.4. With the high-tech industry, a large number suppliers can be part this party.

4.5. Everyone wants to be a Sony or Microsoft supplier in the video game industry.

4.5.1. Assured profit

5. Intensity of competitive rivalry

5.1. Minigames

5.1.1. Sony vs Nintendo

5.2. Consoles

5.2.1. Sony vs Microsoft

5.3. Competitive strategy - keep some dedicated games to the platform