1. Imagine you are Kazuo Hirai head of SonyComputer Entertainment Inc. From your perspective, how attractive does thevideogame industry look in late 2008? 2. Asthe case suggests, Sony has 3 main...

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1. Imagine you are Kazuo Hirai head of Sony Computer Entertainment Inc. From your perspective, how attractive does the videogame industry look in late 2008?



2. As the case suggests, Sony has 3 main strategic options when it comes to the Wii. Pick the one that you think it’s best and explain your choice.


1. Option #1: Stay the course and ignore the Wii


1a. What would Sony try to achieve with this option?


1b. What are the advantages of this option?


1c. What are the main challenges/risks associated with this option?


1d. What is the resulting positioning vis-à-vis the Five Forces if Sony were to pursue this option?


2. Option #2: Embrace and extend the Wii


2a. What would embrace and extend mean?What is the logic of this option?


2b. What are the advantages of this option?


2c. What are the main challenges/risks associated with this option?


2d. What is the resulting positioning vis-à-vis the Five Forces if Sony were to pursue this option?


3. Option #3: Target a new market segment


3a. How should Sony pursue this option?


3b. What are the advantages of this option?


3c. What are the main challenges/risks associated with this option?


3d. What is the resulting positioning vis-à-vis the Five Forces if Sony were to pursue this option?



Answered Same DayDec 23, 2021

Answer To: 1. Imagine you are Kazuo Hirai head of SonyComputer Entertainment Inc. From your perspective, how...

David answered on Dec 23 2021
112 Votes
Sony should go for third option which is Target a new market segment
3a. Sony should capture the new ma
rkets with a product designed to non-gamer customer
segments to the market for example office goers and female professionals. These target
groups are typically not associated with any kind of serious gaming and penetrating this
group will be a very good opportunity in terms of numbers and brand value. The value
proposition would be to entertain rather than to provide hard-core gaming experience.
They need to focus on wholesome entertainment for all members of the family. Nintendo
revolutionized the gaming market and won a valuable new customer segment while
earning superior profit margins.
3b. The greatest advantage of this new value proposition is to establish Sony’s gaming
products as one of the most sophisticated products which are not only for kids but for the
grownups who believe in serious business. With this Sony will be able to beat its greatest
threat competitor- Nintendo which sold 32.4 million units for...
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