Final Strategic Plan
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PerformanenvironmentalscanforTake-TwoInteractive.docxRunning head: ENVIRONMENTAL SCAN FOR TAKE-TWO INTERACTIVE 1
ENVIRONMENTAL SCAN FOR TAKE-TWO INTERACTIVE 7
Environmental Scan for Take-Two Interactive
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'Perform an Environmental Scan for Take-Two Interactive'
Determine how to create value and sustain competitive advantage using the environmental scanning strategy.
The corporate world is changing where there are growing turbulent and dynamic environments which calls for new competitive outlooks. Environmental scanning is a crucial stage in the strategic management for each firm. It entails assessment, monitoring and information dissemination from the internal and external environments to sustain essential individuals like stakeholders in the company. Firms should evaluate the internal environments, which include strengths and opportunities, and weaknesses as well as threats in the company. Technological, political and economic factors are also part of the evaluation in the scanning of the environment process.
Both external and internal environments are operating grounds for each company. There is a profound effect on the environment for firms, although the organization itself has less impact on the environment. Establishments can often scan for strengths, opportunities, threats and weaknesses in the environment (Yu et al., 2019). Organizational strengths' are vital in the maintenance and creation of competitive advantages. Companies focusing on competitive advantage have the power to value and offer outstanding services compared to other firms in the same market.
Consumers are increasing daily in the new economy, and the customers are focusing on companies that give quality products which have relatively a lower price. Each consumer has a desire for unique, convenient products. The Take-Two Interactive Company offers excellent value for its consumers through the delivery of its products to the customers specially and uniquely. Two Take Interactive organization offers its services at low prices, making the firm distinct from the other competitors (Take-Two Interactive Software, Inc. 2019 Annual...).Creation of sustainable advantage in the Take-Two Interactive Company enables it to be competitive at the same time being a hardworking company to retain its superiority. Failure to focus on that will make consumers look for services which will exploit the rivalry among the Take-Two Interactive companies like Valve software.
Evaluate the company's external environment.
Growth rate, employment level together with currency rates, are part of the economic factors affecting the company. To the everyday gamers, gaming is considered not a necessity. Recessionary periods have adverse effects on Take-Two Interactive Company because the government regards it as a luxury company (Take-Two Interactive Software, Inc. 2019 Annual…). When it comes to employment, the firm requires highly skilled personnel that is difficult to recruit because it requires high payment.
Ecological factors like digital transformation in gaming mean abandoning of the physical games to digital ones which they have to create based on the customer's preference. The materials and the machines that the producer uses when creating the game have to be dependent on energy efficiency (Take-Two Interactive Software, Inc. 2019 Annual…). The legal influences in the Take-Two Interactive Company are significant because intellectual property is the biggest asset to the company. The corporation has agreements and contracts with Sony and the Microsoft Company to ensure that its customers have access to the games.
Sociocultural factors keep changing, and this demonstrates that in the gaming industry, there is a change in trends and demographics. Females are becoming part of the e-sports sector, where they form 46% of it (Bosman, 2019). Such is a significant factor for Take-Two interactive corporation to regard because it indicates a change in the traditional target market. Their target market in the past was young male gamers, but now things are changing. There is also a debate about violent video games which result in violent comportment among young gamers.
Technological factor means a lot to the company because its operations depend on the technological industry. The company has to be at pace with current trends where it has to keep upgrading to produce excellent games and experiences for their consumers (Take-Two Interactive Software, Inc. 2019 Annual…). Innovation is also a factor to consider because other publishers and developers are innovative and are becoming more competitive. Investing in cloud computing would make the company more competitive.
Assess the company's general environment.
Take-Two interactive company ensures effectiveness in production procedures, appropriate communication channels and efficient organizational skills in the internal environment. In monitoring and managing the internal environments, the company conducts assessments concerning its operations, and it ascertains provision of the customers' needs (Take-Two Interactive Software, Inc. 2019 Annual…). The firms have set outlooks to monitor and economize on services to lower credit rating problems. Take-Two Interactive organization has prospects in charge of ensuring conventionally low margins in profit and high inventory targets and costs.
The needs of the consumers are the greatest priority for the company. The staff focuses on meeting the set objectives of the company. Social, legal, political and economic factors make up the external environment. The company ensures that it ensures the latest technology in the provision of its services (Take-Two Interactive Software, Inc. 2019 Annual…). Abiding by the laws is a crucial element for the company to succeed in its operations. The influential culture in the company assists it in providing affordable services to the customers.
Evaluate the organization's industry operating environment.
The upcoming competitors and government policies challenge the operating environment for the company. No company takes it easy with new entrants in the market. The company require high levels of knowledge to develop new video programs. The size of the portfolio required in matching the existing firms creates a challenge because it is difficult and costly for the company to make a move to a competitive level (Take-Two Interactive Software, Inc., 2019). The corporation works with resources that are in two types which are tangible and intangible. Organizational culture, brand competence and reputation are the intangible resources in Take-Two Interactive Company. The tangible resources are the financial capital and the possessions that create value in intangible resources.
Conclusion
The external and internal environments of the Take-Two Interactive organization are significant in the company's success. The firm is dominating in e-sports games because of its observance of the business aspects. Companies that want to achieve success and beat the competitive world they must offer excellent services to the consumers for them to continue thriving in the market.
References
Bosman, S. (2019). Women Account for 46% of All Game Enthusiasts. Retrieved from the new zoo: https://newzoo.com/insights/articles/women-account-for-46-of-all-gameenthusiasts-watching-game-video-content-and-esports-has-changed-how-women-andmen-alike-engage-with-games/
Sarkar, S. (2017). Trump's policies are hurting the US game industry. Retrieved from Polygon: https://www.polygon.com/2017/8/2/16083638/trump-game-industry-ea-taketwo
Take-Two Interactive Software, Inc. (2019). Corporate. Retrieved from Take2Games: https://ir.take2games.com
Take-Two Interactive Software, Inc. 2019 Annual Report. Retrieved from https://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_TTWO_2019.pdf
Yu, W., Chavez, R., Jacobs, M., Wong, C. Y., & Yuan, C. (2019). Environmental scanning, supply chain integration, responsiveness, and operational performance. International Journal of Operations & Production Management.
