The video game industry is plummeting in today's market. My fiance worked in Game Stop for 6 months and he sadly saw it go under when the location he was working at shut down. More and more video games, consoles, and stores are struggling because of this market.
It is obvious when video games and consoles are stars when customers are waiting in line for days just for a chance to get their hands on the product but in today's world, things are much more instant than waiting in line for a day. iPod has changed the world with apps. Apps are now on iPads, iPods, iPhones and other electronic devices. Stars are a high-share of high-growth market. "...more than 10 billion apps downloaded from Apple’s iTunes App Store and approximately 15,000 new apps and updates submitted each week to the Apple app review team..." http://dailyappshow.com/achieving-app-store-success-with-effective-iphone-and-ipad-app-marketing
Cash cows, which are high-shares of low-growth, can be beneficial to a company however they obviously need improvement. Their strategy is to maintain or harvest for cash to build to be a star. Consoles, as mentioned above, can be a novelty when first coming out onto the market and people will wait in mile long lines just to get their hands on it. Although console sales soar in the first few weeks, it is hard to keep people interested months later; sales are at a stand still.
Video game and video game console sequel success is questionable. Question marks are low-shares of high-growth market. Nintendo, for example, is about to release the sequel to Wii called Wii U. "Nintendo is hoping to capture lightning in a bottle once again with a new console called the Wii U, which will be released in 2012." http://www.cm-life.com/2011/10/12/nintendo-hoping-to-capitalize-on-previous-success-with-wii-u/ New features and capabilities must outweigh 1) the cost and 2) the previous console. People may feel that they are content with their current console. Others may feel they must have the newest product.
When I think of dogs the first thing that comes to my mind are portable DVD players. Because of the iPad, many things have gone under. Almost any car, especially SUVs, have the option for DVD players. Low-shares of low-growth products are almost not worth being in today's competitive and ever changing market. DVD players are scarce because DVDs themselves are becoming scarce.
Everything is immediate and instant today; movies, games, apps. Majority of the stars in today's markets are instant. Ever notice that?
No comments:
Post a Comment