abhishreshthaa

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Pest Analysis On Atari : Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Atari SA (ASA).[1]

The original Atari Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in arcade games, home video game consoles, and home computers. The company's products, such as Pong and the Atari 2600, helped define the computer entertainment industry from the 1970s to the mid 1980s.

In 1984, the original Atari Inc. was split, and the arcade division was turned into Atari Games Inc.[2] Atari Games received the rights to use the logo and brand name with appended text "Games" on arcade games, as well as rights to the original 1972 - 1984 arcade hardware properties. The Atari Consumer Electronics Division properties were in turn sold to Jack Tramiel's Tramel Technology Ltd., which then renamed itself to Atari Corporation.[3][4] In 1996, Atari Corporation reverse merged with disk drive manufacturer JT Storage (JTS),[5] becoming a division within the company.

In 1998, Hasbro Interactive acquired all Atari Corporation related properties from JTS.,[6] creating a new subsidiary, Atari Interactive.[7] IESA bought Hasbro Interactive in 2001 and renamed it to Infogrames Interactive.[8] IESA changed the company name entirely to Atari Interactive in 2003.[1]

The company that currently bears the name Atari Inc. was founded in 1993 under the name GT Interactive. IESA acquired a 62% controlling interest in GT Interactive in 1999, and renamed it Infogrames, Inc.[9] Following IESA's acquisition of Hasbro Interactive, Infogrames, Inc. intermittently published Atari branded titles for Infogrames Interactive. In 2003, Infogrames Inc. licensed the Atari name and logo from Atari Interactive and changed its name to Atari Inc.[10] On October 11, 2008, Infogrames completed its acquisition of Atari, Inc., making it a wholly owned subsidiary.



The company’s primary goal is to reestablish the image of their brand, and there are different forces that can affect the process of decision-making as well as implementing of different strategies. In terms of the threat of the new entry, because, the company has once become one of the most admired brands in the world, the reestablishments of their brand name will not be that expensive, but there will be a great demand for initial investments as well as fixed costs for maintenance and other related costs. In terms of economies of scale, the company has to use the power of media in order to start with what they want in their image rebuilding. The geographical factors will focus on the different cultures that can affect the demand as well as the operations of the company. Brand loyalty is one of the biggest factors that can affect the image development of the company, this is due to the fact that Nike, Adidas and Reebok had already established its name in the market and already gained loyalty from their current customers, this is connected to the fact that the existing players already have their close contact and strong relationship with the customers. The threat of new entry is quite low, that is why it will be difficult for new player to enter the industry.

In terms of competitive rivalry, In terms of competitive rivalry, there are moderate numbers of competitors; it means that there will be little number of companies that will share to the sales. On the other hand, due to the fast growth of the market, and continuous improvement in the industry of sport, sales will also increase. On the other hand, it will be a disadvantage for those companies in the industry due to the fact that the there are low cost of switching as well as low levels of the product differentiation. It means that customers can switch from one brand to another.

Another important factor that must be considered is the high needs for the strategies. That is why each and every player in the industry has their different strategies in catching the attention of their possible customers.

The exit barriers are also high, this is due to the fact that each and every machineries and capabilities are all specialized, and it will be hard to sell those machines.

The size and trends of the industry is also high, that is why strategy management is important. In general, the competitive rivalry can be considered as high.

In terms of supplier power, the brand reputation is important to be considered. This is because, it is important to include reliable supplier in the supply chain of any company. In addition, the geographical coverage is also important. The destination of different supplier is important for the production process of the company. The main advantage of the industry is that the suppliers are fragmented. That is why in general, the power of suppliers is not that high.

The change in the market distribution can affect the overall performance of each and every company that is included or operating in the industry. On the other hand, the fashion and trends are great factors that can push substitution, for the customers. But the said case can be prevented by the loyalty of the customer and close relationship with them. The threat of substitution is somewhat high due to the fact that each company has almost the same products and services that are being offered.

The consumer has a great power over the performance of the industry. This is due to the fact that their choice can greatly affect their behavior towards the product. In addition to that, it can be affected by the undifferentiated products that are being offered by the players.

But it can be compensated by the large number and size of the buyers as well as the importance of the products to the lifestyles of the customers.
 
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