Business and Information System.
Added on - 20 Sep 2019
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Section AQuestions Part 1:a.Introduction:The case talks about the ideas, plans, challenges, threats, etc. that Ryotaro Kurosawa, presidentof The Freakomon Company (Freakomon) is facing in the introduction of a new video gamecontroller in the market. The vision of the company is to expand its customer base in the gamingindustry which is codenamed as ‘Rashomon’. They are trying to introduce such a product thatcan be used by all sections of people like women, children, adults, etc. and the game is notlimited to the teens and young men only. In the context of this vision, the document contains ananalysis of the competitive trends in this industry in the early 2000s because the company is apioneer in such a product (Feng, 2011). The document also talks about the periodic market cycleof the video game. Since no new product can be introduced without the support of seniormanagement people so the leadership of Kurosawa is mentioned and the aims of ‘Rashomon’too.b.The stakeholders1
In the above diagram, the internal stakeholders are affected by this new product. The motivation,success and promotion of the employees depend on the success of this new product in themarket. Similarly, the manager has the responsibility of managing people so that they delivertheir best and make this move a success in the market (Chevalier, 2016). The owners ofFreakomon are concerned about their long-term growth and success which is related to thislaunch of the product.In the same way, the external stakeholders are associated with this because the customers aredirectly benefitted if they get this product, they will get something new, shareholders will investin building this, creditors lend their money for successful launch and production, etc.c.Competitive position of Freakomon using Porter’s Five Forces ModelForcesCompetitivepositionReasonBargainingMore/HighNo other company had ever released such a controller, and it2
power ofsupplierswas altogether a different model. So, it could have anadvantage of a monopolist in the market and hence it canbargain with the buyers as they do not have the option ofbuying this from any other supplier.Bargainingpower of buyersLess/LowThe competitors of Freakomon like Sony, Microsoft, etc. didnot introduce any such thing in the market, nor were theyplanning to (E. Dobbs, 2014). So, the buyers did not have theoption to buy the similar product from any other company.They had only one choice if Freakomon introduces this newconcept in the market. So, they had relatively less bargainingpower. The prices would be non-negotiable between thebuyers and Freakomon.Threat of newentrantsLess/LowThe barriers to entry in this gaming industry are high. This isbecause the established players in this industry like Sony,Microsoft and Freakomon have invested largely in thisindustry. So, the new entrant will have to arrange for hugecapital to enter this industry. Also, the existing players havewell-established distribution networks and huge customer basewhich are very difficult for a new entrant to capture.Threat ofsubstitutesLess/LowThe company Freakomon does not have the threat ofsubstitutes because it is introducing this kind of product for thefirst time in the market and no similar products will beintroduced in the short run (Majumdar, 2014). However, withthe advancement in technology and replication of the model,other companies may also come up with similar or better3