Final Strategic Plan
Create a 10- to 15-slide Microsoft® PowerPoint® presentation with visuals and speaker notes to present the strategic plan, summarizing all relevant elements from previous weeks. The objective is to sell the strategic plan to investors or company directors.
Running head: TAKE-TWO INTERACTIVE SOFTWARE 2
TAKE-TWO INTERACTIVE SOFTWARE 2
Take-Two Interactive Software
Take-Two Interactive Software
Take two interactive software company is one of the major players in the technology industries. The company maintains its dominant position in the market by analyzing various market factors, including internal and external factors that affect the competitive ability of the firm in the industry. The company deals in the manufacture, distribution, and marketing of interactive video games (Gupta & Herman, 2010). Examples of products produced by the company include console games, personal computers, and handheld game systems. Consumers have access to the products of the company by visiting their retail outlets, cloud streaming, online gaming, and digital download. The company has strategic internal advantages that help it to thrive in the industry (Gupta & Herman, 2010). For instance, the company has a very skilled workforce that has been achieved through successful training in current technological developments. The company spends huge resources on training employees, and this is a huge source of motivation for its workers.
The automation of activities in the firm has brought consistency and efficiency in the way the activities of the organization are conducted. Furthermore, Take-Two interactive company has effective customer relationship management that has ensures customer satisfaction (Gupta & Herman, 2010). The strong chain of reliable suppliers has enabled the company to reduce problems related to insufficient raw materials. The company has a reliable corporate culture that defines the behavior of employees. The employees of the organization demonstrate the utmost competency and professionalism. The vast resources owned by the company give it an advantage in the industry (Gamble, 2008). For instance, the organization owns 2k, publishing labels, and rock star games that are very popular among young people. Huge operating income is also a significant internal strength of the organization.
The most important strength of the organization is a strong dealer community. Take-Two interaction has built a strong relationship with the distributors. Most distributors not only advertise and promote the products of the company. They also conduct training for their sales representatives to increase sales in the market (Gamble, 2008). The sales representatives are trained on how to explain to the customers how they are likely to extract maximum benefits from using the products of the company. Most customers have expressed satisfaction from using the products of the company based on information provided by the sales representatives, mostly trained and employed by the distributors of the firm. The main weakness of the firm is that it has not invested in research and development well enough to compete with the faster-growing technology demand compared to other players in the market (Gupta & Herman, 2010). It is important to appreciate that the organization is spending above the industry average in terms of research, but has not been able to compete with the leading industry players. It posits as a mature firm seeking to manufacture products based on the tested market features. However, the company is growing and has accumulated sufficient resources concerning revenue, employees, and equipment to enable it to open the future of technology and innovation in the gaming industry.
Take-Two Interactive Company has various internal environmental factors that have a touch to the general gaming industries. For instance, values are an important undertaking in technology. The gaming industry wants games and simulations that enhance positive values in society. The values advanced by an organization must correspond to the perception of the same in the industry. Furthermore, the organization has a well-defined mission and objectives that are futuristic and corresponds to the dynamic nature of the gaming industry (Gerasimova, 2016). Other important internal factors include the cooperate culture, business structure, human and physical resources. The analysis of the organization’s external environment is crucial in understanding the dynamics of the market. Therefore, it is crucial to assess the major external environmental factors and how they influence the performance of the organization. The stable cash flow is an avenue to invest in the adjusted product (Gamble, 2008). The availability of more cash in the bank provides a crucial investment opportunity, especially in other product categories. The intergovernmental trade agreement enables the company to open more markets to increase the area of operation and profitability. The increase in the country’s economic development has increased the purchasing power of citizens. The lower inflation rate has resulted in more stability in the market, and this enables credit to be obtained at low-interest rates for clients of the firm.
Take-Two Company operates in an environment with very stiff competition. The profitability nature of the industry has attracted many players willing to have a share of the gaming market. High innovation and increased players have reduced the company’s revenue stream (Gamble, 2008). Most companies are competing so hard to maintain the power and profitability in the industry. The competitive basis of the company is based on diversity, the development in the sector, as well as barriers the entry of the industry. Take two interactive software is experiencing stiff competition from major players such as the Microsoft cooperation, GameStop Corp, Sony cooperation, and Electronic Arts, among others. However, the company has positioned itself strategically with unique products and has a significant market share that ensures a stable revenue stream (Gamble, 2008). The main competitive ability of the company is well-trained employees with an understanding of the current dynamics in the gaming industry. Besides, the company has also established an effective relationship with the distributors, which helps in the effective marketing of the products of the firm.
Just like any other organization, Take-Two Interactive has a definite structure that is crucial in enhancing the operations of the firm. The company has a CEO, chairman of the board, and seven directors. Other functional units of the organization are the finance department headed by the chief financial officer, office of the executive vice president, and legal affairs department (Gupta & Herman, 2010). The organization has youthful leaders holding on various positions to steer the agenda of the firm. The structure of the firm is made simple to prevent complex operation procedures that may reduce the time needed to provide services. The staff and the board members clearly understand the mission and objectives of the firm and thus increase productivity and competitive advantage of the firm. The structure makes it possible to share information with all levels of staff to update them on the decisions taken by the management and what is expected of them (Gerasimova, 2016). The CEO determines most of the activities undertaken in the organization. However, the directors also have a significant part to play in the running of the firm.
Gerasimova, E. I. (2016). The Investment Potential of the Video Game Market. (11 (53), 24-29.
Gamble, J. E. (2008). Competition in Video Game Consoles: Sony, Microsoft, and Nintendo Battle for Supremacy. McGraw-Hill
Gupta, S., & Herman, K. (2010). Take-Two Interactive Software, Inc.