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Swot analysis for the Playstation 2

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A swot analysis shows where a business is at the present time. To find out where a business actually is and how they are doing requires a marketing audit. A swot analyses the external and internal factors which affect a company’s performance. Most businesses analyse their current position by using a swot analysis.

Internal

* Strengths- the strong points of the business

* Weaknesses-the problems it has at present.

External

* Opportunities -which may arise in the future

* Threats- which may arise and should be avoided.

Strengths.

* The Sony playstation 2 has a vast range of games available compared to its rivals like the X-box and Nintendo game cube. The playstation has over 500 games. The X-box only has over 60 games and the Nintendo game cube has just over 35 games.

* The cost of the playstation 2 is reasonably price since it consists of a DVD player. The games are adequately priced compared to the other consoles because the games of the other consoles are very expensive with the cheapest prices starting at �40 per games and with playstation 2 games starting from only �20. The playstation 2 works out to be more economical in the actual long run.

* Customer loyalty is probably one of the best strengths that the playstation has because the playstation 2 is made by Sony who are a multibillion pounds organisation and are known worldwide and are trusted for there quality and reliability of their products.

* With the integrated DVD player Sony has increased sales and helped people to save money by people not needing buying separate DVD players and games consoles. The DVD player has also helped to boost DVD sales.

* Sony is a well established brand and is known worldwide for there quality and reliability.

Weaknesses.

* Many games are still very expensive especially the latest ones which are the games, which people want the most. This can reduce sales because the games people want are just too expensive and the ones they don’t want are the cheapest.

* Sales and revenues were lost when the playstation was released because only a certain number of playstation 2 consoles where sent to each country. This means they need to speed up their production process and think about the quantities, which will be required.

* The original playstation accessories are still very expensive so people are starting to approach third party accessories as an alternative.

* All the compact discs must be handled gently so if a young person accidentally scratches it then the CD will become useless.

* Any knocks and bumps may result in a malfunction so since the playstation is also targeted at young people the playstation 2 should be made resistant to light damage such as the odd bump and knock.

Opportunities

* A boost of sales can be achieved by an increase in advertisement because you want people to know how good the playstation 2 is and want them to buy it

* Increased sales can be achieved buy introducing a new range of accessories such as a battery pack to play the playstation with no plugs and even portable screens for the car so the playstation can be use anywhere and any time by using the car battery.

* Instead of playing the same old family and friends the playstation 2 can become connected to the internet so an owner is able to play a relative or even anybody they don’t know on the other side of the world from their own home.

* By expanding their product range by bringing out multicolour playstation 2 consoles the sales of playstation 2 may rise because it can become a fashion statement because not everyone wants to own a black playstation 2 (like at the moment) so they will have a range of different colours to choose from.

* There may be an opportunity to bring out an advanced playstation 3 in a few years.

Threats

* The competition may like Nintendo game cube and the X-box may bring out a new advanced console and spoil opportunities for the Sony playstation 2.

* The competition may reduce their prices to match prices of the playstation so sales may decrease because more people will be purchasing other consoles.

* Bad publicity may occur because people may experience seizers due to flashing lights and prolonged usage. This may only happen on the playstation (may be of a certain game) and not the other consoles so the playstation 2 may have a sudden decrease in sales of the games and the console.

* Tax and legislation may change so to adapt to these changes a lot of money may need to be used and may also increase the prices of the playstation and its games.

* There may be a change in trends so now people don’t want to be buying playstations and want to spend there money on up-to-the-minute trendy good.

* Environmentally the days are starting to become longer and warmer which poses a huge threat because this means people will be spending their time outdoors and not staying indoors playing on the playstation 2.

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