Strategic Group Analysis of Toy and Gaming Industry

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Strategic Group Analysis of Toy and Game Manufacturing Companies The toy and gaming manufacturing industry can be broadly categorized into two groups. The first is game manufacturers for electronic devices in which producers design and program video games targeted to older children and young adults. The two strategic groups that exist are video game manufacturers for game console systems and manufacturers for online video games. In today’s market, the three major game console systems are Nintendo Wii, Microsoft’s Xbox 360, and Sony’s PlayStation 3. A major third party that these companies outsource to is Valve Corp., the manufacturer and software designer for video games such as Tomb Raider, Resident Evil, and Star Wars. They have enjoyed a reputation of being one of the most highly respected entertainment game manufacturers because of their award winning software design and innovative distribution platforms. Their biggest competitor is Activision, a world-wide developer, publisher, and distributor of interactive gaming software for both computer and console games. Since the company was founded in 1979, they have merged with Vivendi Games and became a major competitor for all corporate giants in the computer and game console entertainment industry. In addition to being the creator of Call of Duty and Guitar Hero, they own the rights to all world famous computer games developed by Blizzard Entertainment, including World of Warcraft, StarCraft, and Diablo. The second category for game and toy manufacturers are non-electronic toy manufacturers whose target market are young children ages 12 and under. The strategic groups for this particular industry are action figures and dolls, as well as board game and puzzle manufacturers. Since children are accustomed to changing toys often, the main focus is their pricing strategy and product diversification. Mattel Inc. is world’s largest toy manufacturing company and the dominant competitor for all toy manufacturing...
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