Consumers and Markets Coursework Example | Topics and Well Written Essays - 2000 words

Consumers and Markets - Coursework Example Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 PRESTCOM Analysis 5 Political 5 Regulatory 6 Economic 6 Social 7 Technology 7 Competitive 8 Organisational 8 Marketing 9 SWOT Analysis 10 Strength 12 Weaknesses 12 Opportunity 13 Threat 13 Conclusion 14 References 15 Bibliography 16 Introduction The computer games market in the entire world is worth about 27 billion USD in a year and it is experiencing a rapid growth. Sony entered into gaming market in the year 1994. The concept of PlayStation was originally discovered by joint partnership of Sony and Nintendo in late 1980s. However, when they wanted to announce their new hardware, Nintendo re-read the earlier contract and found the agreement to be unsatisfactory. Thus, Sony Corp. began working on their previous research and developed the PlayStation. Hardcore gamers are the major customers of PS3. The PS3 targets customer, who are usually 15 to 30 years. As the PS3 support the Blu–ray, secondary customer s are also interested in PS3 because of its HD video quality (Brainmoats, 2008). PRESTCOM Analysis PRESTCOM analysis of Sony will help in analysing the external factors of their business. It helps to understand the new legislation and regulation of government, various business restrictions, and laws relating to tax, VAT, social change and technological factors. It is also used for market analysis. This will help the company to run the business properly. Company can develop new strategies according to the changes in business environment and develop productivity as well. The company can advertise their products and promote their brand. PRESTCOM analysis helps the company to predict the near future condition of business by using political, regulatory, social, economic, technological, competitive, organisational and marketing factors (Maqsood, 2010). Political Political factors consist of the laws of government and pressure group. It affects the company and company’s business in a provided market environment. The policy and rules of government can affect the productivity of Sony Corp. Sony Corp. must need to take permission from the government of a country where it is manufacturing its products. Sony Corporation must develop new innovations to stay ahead of its competitors. Many global policies and laws can affect the company’s regular operation. Government of any country can change or enact various trade restrictions which can make it difficult for products of Sony to survive in the industry. It can change the way Sony works. Government can raise various tax rates such as VAT, Sales tax, Income tax, minimum wage rates, which can hamper the company’s sales. Therefore, the company must prepare for any kind of circumstances (Maqsood, 2010). Regulatory There are various rules and regulations which can affect the company’s productivity. These are: Trade and Business restriction, Returning of product and Warranty regulations. Employment law is also an important factor. It can determine the cost of the product in a specific country. Appreciation of currency plays a significant role in company’s business. For example Sony’s hardware sales decreased because of appreciation of