Competitors P1 (e)

Competitors

Meaning and Purpose:

A competitor is any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share. Competition also requires companies to become more efficient in order to reduce costs.

Nintendo:

Nintendo Co., Ltd.  is a Japanese multinational consumer electronics company headquartered in Kyoto, Japan. Nintendo is the world's largest video game company by revenue. Founded on September 23, 1889, by Fusajiro Yamauchi.

Nintendo has long been a huge competitor in the video game business producing it's own game and system in an example of vertical integration. Nintendo is one of the most solid consistent video game company in the business, but poses a minor threat to Activision Blizzard since Nintendo's games rarely step into the same territory as Activision Blizzard staying on its own game system.

Electronic Arts:

Electronic Arts, Inc. (EA), also known as EA Games, is an American developer, marketer, publisher and distributor of video games headquartered in Redwood City, California, United States. 

Founded and incorporated on May 28, 1982 by Trip Hawkins, the company was a pioneer of the early home computer games industry and is notable for promoting the designers and programmers responsible for its games. In 2011 Electronic Arts was the world's third-largest gaming company by revenue after Nintendo and Activision Blizzard.


EA is a major competitor in the video game market. It has produced hit after hit. Hits include Mass Effect 3, Madden, and The Sims. Star Wars: The Old Republic an MMO in direct competition with World of Warcraft. During the Beta for Star Wars: The Old Republic WoW lost nearly two million subscribers putting earning it the title "WoW Killer" and with the game still young there is a lot of potential for it to grow.

Advantages over competitors:

AB has the huge advantage over many of it's competitors in that it can produce a wide range of products that appeal to a vast range of market segments e.g Age, interests, socio-economic factors.

This is because AB owns multiple studios which at any moment can begin producing products.