Outcome 1 Alphabet Games Essay

2249 words - 9 pages

Outcome 1 Business culture and strategy
Word count: 2196 words
Pages: 9

Intro:
The Aim of this assessment is to show how the industry that Alphabet Games deals in has changed and continues to do so. I need to show how these changes have taken effect using the P.E.S.T Analysis and S.W.O.T Analysis, I also need to provide a set of guidelines to the company on how to use a S.W.O.T Analysis so that they can continue to monitor their needs etc.

P-Political
Political views and guidelines have changed the way most companies work these days. Alphabet Games works within an area of business that is constantly changing in the world of politics. The Government has set out new rules for ...view middle of the document...

Anyone found to be distributing counter fit games; consoles or other computer equipment will be brought to justice.
After researching the political changes you can see that it both helps and hinders the Gaming industry.

E-Economical
Alphabet Games falls into an industry that can be hit hard by the economical values, with the ever rising cost of essential items needed for day to day living, unfortunately luxury items such as video games and consoles have to take a back seat. Prices of games continue to rise and they can range from £5 - £60 for new releases and consoles can be from £100 - £600. With the suffering economy many consumers are looking at cheaper alternate ways to purchase games such as auction sites and second hand shops. However the rising costs of living can also help the industry as many people are staying in more rather than going out and “gaming nights” are becoming quite popular especially with young adult males.
There are also so many companies making games and other computer equipment that competition is fierce and Alphabet games may be forced to reduce their prices in order to stay ahead in the industry and seek more customers as better sales produce better profit margins.
Not only are the prices of these items rising but the cost of operating a company is rising too. The cost of rent and mortgages is astronomical at the moment along with the heating costs, electricity, insurance, and unfortunately this is being reflected in the price of the games etc.
You can also find that the class system that seems to have imbedded itself in our world can also have an effect on the way games and what games are sold in certain areas, for instance you will probably find that the working class are more likely to play popular games such as Call of Duty than middle and higher class. And more mind provoking games such as brain training and games that require a certain amount of intelligence are sold within areas of better education systems than those who are maybe not as educated.

S-Social
There has been a huge difference in the social system and how this has affected the way that Alphabet Games trades. Traditionally it was younger kids that have been associated with video games, however this is changing and more older people are getting involved as the following information below shows. It shows how more and more women are also getting involved and that it’s becoming more acceptable to own a console no matter what age you are.

This information was collected by the Internet Advertising Bureau UK (IAB) and is not my own findings:

1. 32.9 million People across the UK play games, 82% of the 8 – 65 year old online population

2. 51% male, 49% female

3. Playing games was found to be more than twice as engaging compared to any other media

4. Seven out of ten 16 – 65 year old game players regularly use a gaming device (at least 3 times a week)

5. Games consoles are more likely to be played for longer periods (30 mins –...

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