Trusted by 2+ million users,
1000+ happy students everyday
1000+ happy students everyday
Showing pages 1 to 2 of 4 pages
Section AQuestions Part 1:a.Introduction:The case talks about the ideas, plans, challenges, threats etc. that Ryotaro Kurosawa, president of TheFreakomon Company (Freakomon) is facing in the introduction of a new video game controller in themarket. The vision of the company is to expand its customer base in the gaming industry which iscodenamed as ‘Rashomon’. They are trying to introduce such a product that can be used by all sectionsof people like women, children, adults, etc. and the game is not limited to the teens and young menonly. In context of this vision, the document contains an analysis of the competitive trends in thisindustry in the early 2000s because the company is pioneer in such a product. The document also talksabout the periodic market cycle of the video game. Since no new product can be introduced without thesupport of senior management people so the leadership of Kurosawa is mentioned and the aims of‘Rashomon’ too.b.The stakeholdersIn 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 the market.Similarly, the manager has the responsibility of managing people so that they deliver their best andmake this move a success in the market. The owners of Freakomon are concerned about their long termgrowth and success which is related to this launch of the product.
In the same way, the external stakeholders are associated with this because the customers are directlybenefitted if they get this product, they will get something new, shareholders will invest in building this,creditors lend their money for successful launch and production, etc.c.Competitive position of Freakomon using Porter’s Five Forces ModelForcesCompetitivepositionReasonBargaining powerof suppliersMore/HighNo other company had ever released such a controller and it wasaltogether a different model. So, it could have an advantage of amonopolist in the market and hence it can bargain with the buyersas they do not have the option of buying this from any othersupplier.Bargaining powerof buyersLess/LowThe competitors of Freakomon like Sony, Microsoft etc. did notintroduce any such thing in the market, nor were they planning to.So, the buyers did not have the option to buy the similar productfrom any other company. They had only one choice if Freakomonintroduces this new concept in the market. So, they had relativelyless bargaining power. The prices would be non-negotiable betweenthe buyers and Freakomon.Threat of newentrantsLess/LowThe barriers to entry in this gaming industry are high. This is becausethe established players in this industry like Sony, Microsoft andFreakomon have invested largely in this industry. So, the newentrant will have to arrange for huge capital to enter this industry.Also, the existing players have well-established distributionnetworks and huge customer base which is very difficult for a newentrant to capture.Threat ofsubstitutesLess/LowThe company Freakomon does not have threat of substitutesbecause it is introducing this kind of product for the first time in themarket and no similar products will be introduced in the short run.However, with the advancement in technology and replication ofthe model, other companies may also come up with similar or betterproducts.Industry rivalryMore/HighFreakomon has many big competitors like Sony and Microsoft whoare well-established players. They have established the trend oftargeting the young fans in this industry. Also, they have advancedtechnology and huge networks of distribution. So, they create rivalryin the industry.d.Recommendation for information systems (IS) or information technology (IT) that could supportFreakomon’s approach to improve its strategy:Freakomon should use cloud based technology so that it can successfully manage its customerrelationships. The vison pf this company is related to expansion of its customer base and it aims totarget many different sections of the people. So, for this, the company needs to establish itsrelationships with the customers so that they get interested in this innovation and they easily accept this