STEEP-analysisThe puzzle of the macro environmentGroup 6A
Media Management 2304
Finding opportunities and threats in a new environment
Steep-analysis
SocialTechnologicalEconomicEnvironmentalPolitical
GDP-growth rate Inflation Interest rate Unemployment Purchasing power Labor cost Currency exchange ratewww.netmba.com/strategy/past
Main economic factors
“Casual games are video games developed for the mass consumer, even those who would not normally regard themselves as a ‘gamer.’”
http://archives.igda.org/casual/IGDA_Casual_Games_White_Paper_2008.pdf
Casual Gaming Industry
Fundamental indicator reveling the tendency of the economic development
Defines the attractiveness of the economy GDP-growth rate describes the business cycle
stage Indirect effects on casual gaming industryMost casual games are “free” and hence GDP
is not directly related to casual gaming industry. However, a too low GDP indicates that people can’t purchase the casual game equipment
GDP-Growth Rate
Casual gaming industry = low-involvement purchase (high involvement product)
No big investments for developing the casual games inflation/interest rate not influencial
“Price wars: the price for downloadable PC games decreases, with $6.99 becoming the new industry standard”
http://www.slideshare.net/alawar/the-state-of-the-casual-games-industry-in-2009-market-trends-and-opportunities
Inflation/Interest Rate
With unemployments people play morehttp://stuffunemployedpeoplelike.com/2009/06/02/92-
playing-casual-games-until-their-hands-cramp/
Due to unemployment, people have more time to play, hence the demand should increase. However, the demand for casual game equipment should decrease.
Unemployment
Unemployment effects the purchasing power Several casual games are for free demand
of basic games should not be effected due to lack of income
Purchasing of extras should decrease effecting the industry
With higher purchasing power,people can spend more money
on casual game equipment
Purchasing Power
Labor cost stands for a majority of total cost in casual gaming industry
Industry demands knowledgable, specialist people
Shortage of people available to work in the industry
http://www.sudesca.org/green-economics/the-games-industry-casual-and-serious-reasons-for-continued-growth/
Since the casual gaming industry is labor intensive and it requires specific knowledge, the industry should be highly effected by the labor cost.
Labor Cost
International market Products of export Extras and equipment is payed with local
currency and bought on local markets Currency exchange rate effects the industry
– revenues, profitability and attractiveness in general
Currency exchange rate
”Seeing that most causal games are free or inexpensive for customers to use, the economic factors such as GDP and interest rates, should not have as much impact as in most other industries. However, factors such as unemployment rate and labor cost are important economic factors in the casual gaming industry”
Conclusion
www.netmba.com/strategy/past http://archives.igda.org/casual/
IGDA_Casual_Games_White_Paper_2008.pdf http://www.slideshare.net/alawar/the-state-of-the-
casual-games-industry-in-2009-market-trends-and-opportunities
http://stuffunemployedpeoplelike.com/2009/06/02/92-playing-casual-games-until-their-hands-cramp/
http://www.sudesca.org/green-economics/the-games-industry-casual-and-serious-reasons-for-continued-growth/
Reference
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