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Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version


Describes the launch of Sega's 16-bit Genesis console in 1988 and its effect on competitor Nintendo. A rewritten version of an earlier case.

Authors :: Peter J. Coughlan

Topics :: Strategy & Execution

Tags :: Competitive strategy, IT, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version" written by Peter J. Coughlan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Genesis Sega's facing as an external strategic factors. Some of the topics covered in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study are - Strategic Management Strategies, Competitive strategy, IT and Strategy & Execution.


Some of the macro environment factors that can be used to understand the Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version casestudy better are - – technology disruption, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, etc



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Introduction to SWOT Analysis of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Genesis Sega's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Genesis Sega's operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study
2. Improving business portfolio management of Genesis Sega's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Genesis Sega's




Strengths Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Genesis Sega's in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version Harvard Business Review case study are -

Highly skilled collaborators

– Genesis Sega's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Low bargaining power of suppliers

– Suppliers of Genesis Sega's in the sector have low bargaining power. Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Genesis Sega's to manage not only supply disruptions but also source products at highly competitive prices.

High switching costs

– The high switching costs that Genesis Sega's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Training and development

– Genesis Sega's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Superior customer experience

– The customer experience strategy of Genesis Sega's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Diverse revenue streams

– Genesis Sega's is present in almost all the verticals within the industry. This has provided firm in Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Effective Research and Development (R&D)

– Genesis Sega's has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Strong track record of project management

– Genesis Sega's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Analytics focus

– Genesis Sega's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Peter J. Coughlan can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Cross disciplinary teams

– Horizontal connected teams at the Genesis Sega's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

High brand equity

– Genesis Sega's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Genesis Sega's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to lead change in Strategy & Execution field

– Genesis Sega's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Genesis Sega's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.






Weaknesses Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version are -

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Genesis Sega's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version, it seems that the employees of Genesis Sega's don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Aligning sales with marketing

– It come across in the case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version can leverage the sales team experience to cultivate customer relationships as Genesis Sega's is planning to shift buying processes online.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version, is just above the industry average. Genesis Sega's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Genesis Sega's has relatively successful track record of launching new products.

Workers concerns about automation

– As automation is fast increasing in the segment, Genesis Sega's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Genesis Sega's supply chain. Even after few cautionary changes mentioned in the HBR case study - Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Genesis Sega's vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– After analyzing the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Products dominated business model

– Even though Genesis Sega's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version should strive to include more intangible value offerings along with its core products and services.

Low market penetration in new markets

– Outside its home market of Genesis Sega's, firm in the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Slow to strategic competitive environment developments

– As Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version HBR case study mentions - Genesis Sega's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.




Opportunities Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Genesis Sega's is facing challenges because of the dominance of functional experts in the organization. Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Genesis Sega's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.

Creating value in data economy

– The success of analytics program of Genesis Sega's has opened avenues for new revenue streams for the organization in the industry. This can help Genesis Sega's to build a more holistic ecosystem as suggested in the Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version case study. Genesis Sega's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Better consumer reach

– The expansion of the 5G network will help Genesis Sega's to increase its market reach. Genesis Sega's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Genesis Sega's can use these opportunities to build new business models that can help the communities that Genesis Sega's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Genesis Sega's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Genesis Sega's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Genesis Sega's to hire the very best people irrespective of their geographical location.

Developing new processes and practices

– Genesis Sega's can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Building a culture of innovation

– managers at Genesis Sega's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.

Leveraging digital technologies

– Genesis Sega's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Buying journey improvements

– Genesis Sega's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Genesis Sega's in the consumer business. Now Genesis Sega's can target international markets with far fewer capital restrictions requirements than the existing system.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Genesis Sega's can explore opportunities that can attract volunteers and are consistent with its mission and vision.




Threats Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version are -

High dependence on third party suppliers

– Genesis Sega's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Genesis Sega's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Environmental challenges

– Genesis Sega's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Genesis Sega's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Genesis Sega's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Genesis Sega's business can come under increasing regulations regarding data privacy, data security, etc.

Easy access to finance

– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Genesis Sega's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Genesis Sega's in the Strategy & Execution sector and impact the bottomline of the organization.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Genesis Sega's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Consumer confidence and its impact on Genesis Sega's demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Regulatory challenges

– Genesis Sega's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.

Shortening product life cycle

– it is one of the major threat that Genesis Sega's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing wage structure of Genesis Sega's

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Genesis Sega's.




Weighted SWOT Analysis of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Competitive Dynamics in Home Video Games (C): The Sega Genesis, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Genesis Sega's needs to make to build a sustainable competitive advantage.



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