Case Study 2 Example | Topics and Well Written Essays - 1000 words

2 - Case Study ExampleIt had the expertise, and had the best knowledgeable game developers in the market then. With these strengths defined, the management could buzz off looked at the weaknesses. Weaknesses are the internal factors that if not managed properly can potentially stir an organizations precise existence. Weaknesses in most times are what other competitors dwell in in laissez passer to win a warlike improvement over other firms in the same industry. When Kotick took over the leaders of the activation blizzard company, he looked at the weaknesses of the EA Company, and capitalized on t5hese to get the company on it5s feet again. After a number of years, the company surpassed the company in the level of sales and the market share. Had EA seen these weaknesses and capitalized on them, perhaps Activision rash would not make up taken over from its market leading. In essence, an opportunity is an unexploited business idea. Kotick, by and by joining the industry saw a number of opportunities that EA could not see. Subsequently, the company managed to take over the leadership of the gaming business from the EA Company. Therefore, exploiting these opportunities before Activision Blizzard could, would pay back given the company a competitive advantage and saved it from the slippage that it currently faces. Threats on the other hand are a myriad of setbacks that would potentially affect the existence of the company. Competitors are part of the threatening factors for a company, a factor that EA never saw until it was very late. By the time it realized the strength of Activision Blizzard, it was too late as it controlled the biggest portion of the video-games market. 2. Michael Porters generic strategies theory consists of three strategies that businesses apply in order to stay ahead of their competition therefore maintaining their competitive advantage. Porter classified these strategies into two dimensions, which included the strategic scope and t he strategic strength competitive advantages. While the strategic scope focuses on the demand side by particularly paying prudence to the size and composition of the market, strategic dimension focuses on the supply side of the organization, especially how to meet the needs of the target market (Mun, 10). In his theory, the cost leadership strategy involved two main shipway of achieving the competitive advantage in a market, i.e. profit maximization by reducing costs still charging industry rates, or increasing the market share by charging lower market prices. Since the main physical object of cost leadership is cost maximization, the costs that customers have to pay for commodities is a different issue (Mun 10). EA could have charged exorbitant prices for its games, regardless of the supply in the market. Perhaps, its games priced high, despite the market prices being relatively low. This way, customers could have preferred the companys biggest competitor, Activision Blizzard. Differentiation strategy is the manner in which companies strive to make their products alone(p) from the rest of the competitors in the industry. Through research, an organization can provide high prize products and through utile sales and marketing strategies. While Activision Blizzard capitalized on the features of its games, and providing its customers with improved games, EA relaxed, and never improved on the quality of its games through features. Activision