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Introduction
Sony Company has contributed to the evolution of technology, leading to enhanced productivity in the market. Sony has presented itself as a corporate strategy from a long-term view in relation to entertainment, thus creating a solid foundation for its success. The introduction of PlayStation 5 (PS 5) has led to users experiencing a sense of technological advancement by Sony Company. PlayStation 5 features audio and visual technology through the controller, which enables users to experience games with a sense of reality and in an impressive manner. A considerable number of individuals have been able to embrace PlayStation 5 hence the success. Therefore, Sony will increase its user engagement by strengthening the PlayStation experience (Yasir & Ali, 2021). However, the company faces various market situations that it needs to analyze to determine their implication in growth and acceptability to customers. Due to its successful and impressive technology, Sony plans to continue leveraging its strengths, weaknesses, opportunities, and threats to generate more content for its clients, creating room for evolution and long-term growth.
Market Analysis Situation
The current market situation of PlayStation 5 includes various impacts, its stakeholders, and competitors who play a crucial role in terms of growth. These market dynamics includes external and internal factors that will be analyzed under the Strength, Weaknesses, Opportunities, and Threats (SWOT) analysis (Vlados, 2019). Strength and weaknesses are internal factors, whereas opportunities and threats are external factors. PlayStation has shown its potential growth in the industry due to a wide range of gaming activities. Its comprehensive level of acceptance has shown its positive success in the gaming market. Sony Company believes that PlayStation 5 will have high performance compared to the vast success Playstation4 (PS4) had and continued loyalty to the brand. This has been one of the most significant strengths towards targeting a positive market response. Consequently, the great success of PlayStation goes in hand with high profits hence ensuring that they remain competitive against their rivals. The growth of Sony Company has also been attributed to internal management whereby they can make a reliable decision. Additionally, Sony being one of the biggest brands globally has high acceptability of gaming. Sony has also created job opportunities for many individuals across the world, thus having good reviews in terms of operations. The Covid-19 pandemic has made many individuals have a lot of leisure time. Rather than boredom, these individuals have diverted to gaming, thus increasing marketing. A high percentage of the young generation has contributed to the popularity of PS5, making it to be acceptable internationally (Macák, 2020). It is clear that PlayStation 5 has a lot of strengths that will contribute to its success. Further, remaining significant in the market provides Sony with an opportunity to dig dip to create customer satisfaction the relevant stakeholders of PS5 are customers, suppliers of equipments and business partners who have a crucial role towards identifying success of this gaming.
However, regardless of the massive popularity and acceptance of PS5, this gaming faces various weaknesses that need to be addressed. Deficiencies might lead to a change in customers tastes and preferences, leading to the products failure. Sony is perceived to be one the greatest brands; however, it is expensive to many of its markets. Despite the willingness to purchase games, high prices cut short the interest of individuals who loves gaming. Additionally, the PlayStation is unsuitable for gamers who do not like using a controller to play the game. The experience of using keyboard and mouse support is not as good as for those who use controllers. Many users associate the game with consuming more space, and there is no room to expand storage at launch; therefore, some of them decide to shift to games occupying less space. To take full advantage of PS5, one needs to have the latest television technology, which is not affordable (Torre, 2020). Users of PS5 cannot use the Dual Shock controller of PS4, making it a must-purchase for its specific controller. At times PlayStation may limit expansions whereby the company will be concentrating on the present success. These weaknesses need to be appropriately addressed to ensure Sony will have an opportunity to work out on them. Additionally, these weaknesses can be advantageous in designing a less complex and affordable PS5.
PS5 have had the most incredible opportunity to expand due to widened market attraction. Various people are stuck at home, and they need something to spend time on. PS5 thus has the chance of a market change to advertising itself to individuals to buy it spend more time at home to protect themselves. PlayStation can be used as a movie and show watching platform. Further, PS5 has an opportunity to partner with external businesses to ensure that their software is selling at best. This implies that they will have a more robust relationship with customers. Targeting a large group of users can be increased to ensure the widespread of PS5. Currently, only the young generation and gaming fans have been exposed, raising the alarm on numerous strategies that can help improve the customer base. Expanding its services across the globe goes in hand with increased revenue which is the core need of its survival in the long-term operations. Sony also aims to contribute towards the interest of its users. It depicts that individuals will have the opportunity to share their experiences and various interests that might require attention.
PlayStation 5 and the Sony Company face a potential threat from their competitors. Their competitors include Xbox Series X which continues to thrive despite the presence of PS5. The presence of a substitute can result in customers switching to a more affordable one since the market is always sensitive to prices. Other platforms and their sales pose a significant threat to PS5, which reduces sales. Having a limited number of customers who can purchase the gaming leads to decreased profit generated. Other companies might be willing to have a price reduction to attract many customers, and this might be a massive impact on PS5 and Sony if they are not willing to adjust their prices. There are possible causes of hacking by third parties leading to considerable data losses. Additionally, taxes and changes may affect the PS 5 generation. The government may raise complicated procedures in acceptability of this gaming, thus leading to loss of time. Determining the ideal locations to maneuver might lead to high operational costs, especially when moving from one place to another. The gaming industry is dynamic, and this calls for more often reviewing of the PS5. Regarding this, it depicts that PS5 should constantly be updated to ensure that it consists of new technological changes. PS5 also faces a threat of new entrants from new technological gaming. Concerning this, companies are working restlessly to ensure they have more advancements of PS5 (Pallavicini et al., 2019). Every individual generates their gaming mode, and if the market is not alert, it might lead to the growth of fake products. Therefore, these threats raise the alarm then need to remain significant in the market. PS5 data should be encrypted and encoded to avoid hacking and threats from third parties. Further, the company should design its way of safeguarding information and how it can be passed to its user without being tampered with.
Market Segment Analysis
Market segmentation is a technique that involves conducting market research to determine how a product will be developed and developed for its customers. Market segmentation allows a company to have an in-depth understanding of clienteles and how many recommendations are required to ensure the success of these products (Taleizadeh et al., 2018). An effective market analysis criterion will have to undergo distinct steps to ensure a positive outcome. Regarding the PlayStation 5, conducting a market segmentation analysis involves numerous steps. First, Sony Company needs to set an objective on which it will be able to work to achieve. Regarding this, Sony as a company has to identify the targeted market of PS5 and the ranging variables to be successful. Second, understand customers; this includes collecting and analyzing data in relation to PS5 gaming. For example, identifying the population around will determine whether gaming is an ideal business for them. Further, evaluating the target segment is also necessary (Trail & McCullough, 2018). This entails identifying the potential group and location whereby the product can thrive well. Researching other platforms and their success rate is keen to determine how the market changes. This will give a go-ahead of the PS5 in terms of projected goals, market viability and product status. Identifying the key stakeholders who will assist launch the plan using the target sectors is vital to ensure success. As such, it is easy to determine the compatibility of PS5 in a targeted area through market segment analysis. The discussed segment provides justification on the importance of each sector. Every section depends on each other to ensure that market analysis is successful.
Target Market Analysis
By conducting market segmentation, there is a wide range for the desired outcome in the market, such as determining competitive advantage. Operating a PS5 in a segmented area will provide the know-how of the driving forces towards the acceptability of the product (Ruiz-Pava & Forero-Pineda, 2018). Consequently, it is easier to improve the product development process (Wijewardhana et al., 2021). Such includes pinpointing weaknesses, hence creating services that will satisfy the intended group. Conducting market analysis segmentation also helps improve performance because it will aid in decision making (Dolnicar et al., 2018). Individuals behavioral changes play a crucial role in determining the readiness of a group to purchase the PS5 and how much time they will spend to adapt to changes, hence determining the future viability and possibility of growth. Carrying out psychographic segmentation helps navigate habits, social status, personality and values of customers and how many appraisals they have towards the product. Psychographic segmentation has a crucial role in determining attributes that cannot be noticed physically.
Another recommendation regarding the target market section is geographic segmentation. Setting up a PS5 and thriving is determined by the location construct. The determination of an appropriate location is based on country size and the state the company wants to build. Further, it entails identifying the characteristics of the location, such as its population density, whether urban, suburban or rural. These factors set up a base for operating the PS5 business. An urban area is more ideal for technological growth and advancements than a rural area (Macák, 2020). Therefore, individuals in urban areas are likely to embrace the PS5, thus current development and future assessments. Additionally, a target market analysis goes in hand with generation segmentation. Before setting a PS5, Sony Company may determine ideal customers using their generation classification. Currently, the various group categories include Generation Z, Millenials, Generation X, Baby Boomers and the Silent generation. It is believed that these peers share different preferences, behavior, personality traits and beliefs (Ivanova et al., 2020). Compared to the Silent Generation, Generation Z has more technological advancements. Therefore, different ages pose a clear advantage in determining the market analysis. The various recommendations pose a great justification on how Sony can meet an ideal market on PS5 gaming. A flourishing market provides a positive outcome and an opportunity for future growth.
Conclusion
In summary, the potential growth of PS5 is determined by the ability of Sony Company to identify the strength, weaknesses, opportunities and threats prevailing in the market. Being able to differentiate these factors provides a robust opportunity towards success. Determining the strongholds keeps the company and its services competitive in the business. Additionally, it supports maximizing profits due to the ability to assess the success of a product. Nevertheless, being weak helps identify loopholes hindering a product from generating and realizing gains. Any weaknesses of PS5 will aid Sony to define various strategies and options that will curb the situation. Moreover, opportunities assist in navigating new markets and ideas later execute them. PS5 may create a prospect to identify an opportunity that goes in hand with the existing business operations. This is essential for outplaying competitors through other channels of generating revenue. On the other hand, threats help PS5 grow in technological advancements. When Sony realizes any attempt to breach in their product, they can adjust their data into a more compatible way. Further, it is necessary to layout procedures that will help meet customers demands while also maximizing the companys goals. It is essential to work out long-term goals due to the nature of gaming that can change at any time. Therefore, carrying out a market analysis aids in determining the acceptability and future growth of PlayStation 5.
References
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Yasir, M., & Ali, Y. (2021). Review on real time background extraction: Models, applications, environments, challenges and evaluation approaches. Learning & Technology Library (LearnTechLib). Web.
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