Global Video Games Industry - Porter's Five Forces Strategy Analysis

The ubiquitous video game which incepted as a concept and soon caught on as a wildfire business proposition in the early days of 1972 was traditionally positioned conservatively at kids who were believed to be the dominant purchase influencers. The present market situation however begs to differ which presents the video game market as a serious business proposition which exceeds age groups as well as retains them the world over. Current day video games market has consumers which use this channel as an expression of competitive ability transcending boundaries as well as serious arcade game championships participations.

Aruvian Research analyzes the Global Video Games Industry in Michael Porter's Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.