Strategic Groups in Video Game Industry

A strategic group is a cluster of industries rivals that have a singular competitive approach and market approach. Nintendo and Sega’s key competitors in the videogame industry include Sony, 3DO, Atari and Phillips Electronics SNV. 

Hence, based on the companies’ market share (x-axis), and Sales (y-axis), a strategic group map was developed through which we were able to identify which companies are strongly positioned and which are weakly positioned in the industry.

Strongly positioned strategic group (1) – Nintendo, Sega and 3DO

Weakly positioned strategic group (2) – Atari, Phillips and Sony