Owners and managers of Alphabet Games, should not make decisions related to running their business according to their own premonitions. They should rely less on intuition, instead, their choices should be supported by hard numbers and analyses. One of such methods is the analysis of five Porter's forces which should be applied before attempting to enter a given market, expand or subsequent development. The analysis serves a purpose to assess the attractiveness of the sector and is based on few different factors that are related to the company's environment: bargaining power of suppliers, bargaining power of buyers, competition inside the sector, the threat of the emergence of new producers and threat of substitutes. This model provides a framework …show more content…
Thus, it is a strong side of Alphabet Games, which allows them to build a strong brand in the video games market and reach a wider group of players and critics. An experienced team of developers allows them to create attractive games while keeping costs in check, due to better time management. The weak side of running business results from the specificity of the activity consisting in the production of video games. The company first incurs expenditures that are returned only when the market accepts the product positively. There is a risk of delaying the game's launch, which may result from various factors: erroneous estimation of the work schedule, underestimation of production costs and limited access to financing. The postponement of the premiere may also be due to technical problems at the level of the programming layer. The above affects the rate of return that can be achieved from the implementation of a given …show more content…
The risk is significant because people who are part of the creators would want to start their own operations, without the participation of Alphabet Games. There is, therefore, a risk of employees leaving for the development of their own projects. Threats to the company's operations should also be seen in the specificity of the recipients of the product - these are retail customers, individual gamers. The success of placing the game on the market may be difficult due to the changing consumer tastes, market trends and variable fashion. Before starting work, it is necessary to determine the direction of changes in the future. The fact that they were rightly assessed is not known until the launch, in which the company could be unable to predict