3. Threat of Rivalry Personal Computers and the music/audio market are Apple’s two main areas of competition. Their leading competitors are Dell, HP, and Microsoft. Personal computers are quite popular today and with so many choices, the sales price of the computers need to be lowered to a competitive price which can, again, lead to a loss in profit. However Apple has, because of their easy to use and widely available, fair priced iPod(s), cornered the music market.
The second bundle, which costs a whopping $600, includes a console with roughly double the internal memory as the core. Also included in the “deluxe” bundles are three games, two wireless controllers, and several different colored faceplates that add to the appearance of the system. Although the 360 is very expensive, it does have its advantages. The game play is especially precise and accurate. The Xbox features 2.4 GHz wireless controllers that allow for a play range of up to 30 feet.
Despite the loyalty, some people are still choosing to buy the Xbox 360 Kinect over the PlayStation 3. In an article on CNET.com the author stated this, “The Xbox 360 still remains the better selling of the two powerhouse consoles of this generation, but by a smaller margin worldwide. This is partly because the system went on sale an entire year before the PlayStation 3 and because the console had a much stronger lineup of exclusives early on in its life cycle. Also at launch, Xbox 360 was considerably more affordable than the expensive PlayStation 3 (Bakalar, 2011, p.4). Consumers have chosen to buy a game system that is opposite of the sedentary lifestyle that they were currently accustomed to in the past.
PS3 vs. Xbox 360 Video games have come a long way in recent years. New technology and increasing popularity make video games one of the fastest growing industries in the world with no sight of slowing down. Two of the latest and greatest contributions to the video game industry’s success are Sony’s Playstation 3 (PS3) and Microsoft’s Xbox 360. These two consoles represent the two most advanced home video game systems on the market today. Even though both the PS3 and the Xbox 360 provide similar home entertainment, there are several technical differences that can play a key role in ones decision of which one will be a wiser investment.
Competition in the notebook PC market was fierce, and Toshiba could retain its position as market leader only by relentlessly improving its manufacturing processes and lowering costs. Toshiba had some formidable advantages over its competitors, stemming largely from huge investments in such technologies as thin-film transistor (TFT) color displays, hard disk drives, lithium-ion batteries, and CD-ROM drives. In addition, by forming partnerships and joint ventures with other industry giants, Toshiba could share the risk of developing expensive new technologies. With its highly automated factories and sophisticated communication networks, Toshiba brought formidable manufacturing expertise to these alliance. A sophisticated computer network linked OME with other domestic and overseas Toshiba development and production sites.
Yes, the 360 is still showing more numbers in sales of unit, but look at the failure rate of the console. That means many consumers re-bought the Xbox 360 once their console broke down. To continue, the PS3 beats the Xbox 360 is exclusive games. At the time of each console release the PS3 did infact lack great quality games, which many Xbox fans pointed out and shoves down the throats of PS3 fans. But the times have changed.
Sony with significant interests in the entertainment industry has established a Playstation Network – an online console service where users can also purchase or rent music, movies and other digital entertainment content. Sony has positioned the Playstation as a multipurpose entertainment console. As such Sony markets the Playstation at a loss and attempts to leverage the platform and realize profits from the games and other entertainment properties. Microsoft has traditionally targeted the “hardcore” game player offering superior processing, graphics and overall performance. Microsoft also offers the Xbox at below cost and attempts to realize profits through its own game sales and through licensing royalties from independent publishers.
Competitors quickly recognized Dell’s success; however, none were able to successfully restructure their operations to reach the profit levels that Dell achieved. Demand for personal computers began to grow in the mid-nineties due to strong economic growth and the emergence of new computer network services. However, low average profitability was common in the PC market. PC makers were faced with the challenge of developing a PC that consisted of the major components that consumers desired. This was a very complex task considering the numerous combinations of hardware and software components available.
Like pervious attempts to move away from VHS tapes, DVDs players were very costly at first. As time went on, DVD’s players became cheaper to produce and many of them where incorporated with home theater systems due to the demand of people who wanted to watch movies on their own big screen. With this boom in DVDs’ it created a demand in the movie rental marketplace. Since Blockbuster was apart of Viacom, which was a multimedia conglomerate, they were able to provide them with supplier power and buyer power. Blockbuster was able to outspend the competition, which in turn created Barriers to Entry for Rival video stores.
From the moment Tom was in charge of the company he focused on increasing the companies profit margin. This was not an easy job being that the company’s main products are considered commodities. Aside from that the partyware industry is constantly gaining new competitors that capture the market with similar products at lower prices. Tom Rose is currently faced with two marketing strategies that could be considered industry game changers and greatly impact his business. The original strategy is the launch of a brand line for Rose Partyware that will showcase a new printing technology that will improve quality and reduce costs.