Emergent Strategy and Changing Capabilities in Video Games Industry - Essay Example

Since this is a broad topic, a holistic qualitative method of study was chosen. A case study regarding Sony’s emergent strategies was undertaken, following the examples provided by the review. The research uses a structured grounded approach to the study. A structured grounded theory is a research approach that allows the hypothesis to emerge from exploring a case study. The data collection was based on secondary documentary evidence, supported by Yin (2003). In case of study research, data collection, analysis, and dissemination occur cooperatively in order to explore a descriptive case study.

The research finds that Sony is able to understand when the business world is unpredictable and Sony is able to organize itself to respond to market pressures through its brand identity. However, Sony does not have adequate strength to move knowledge inside the organization to consumers or to build relationships with customers based on information, such as in the release statements of new products. Sony is able to evolve, however, its continued and rigid focus on the PlayStation line does not offer a flexible approach, particularly in seeking out new sources of revenue and innovation.

New theories in strategic management consider a back to basics approach (Grant 2007). The video game industry is one of the most volatile and high growth industries in the modern technology era (Williams 2002). However, the industry is controlled by three main competitors: Nintendo, Microsoft and Sony (Williams 2002). With the recent launch of the PS3, Sony has suffered unexpected profit losses from low purchases in both the console and the game software development. Thus, it becomes important to examine if customer satisfaction affects the marketing strategies employed.

Many firms do not focus on customer satisfaction as a method of increasing back to basics profitability and instead focus on other methods of generating money. This includes mergers and acquisitions (Anderson and Mittal 2003). Yet not all blame can be laid upon the consumer.