Situational Analysis for Massive Incorporated Essay

Situational Analysis for Massive Incorporated - Essay Example Profit. As with any business organization, Massive opts to generate profit from its products and services. This is to ensure that the business has enough funds to finance its operational costs and other projects. Clients. Being a pioneer in the market, the company aims to understand its client needs in order to deliver maximum satisfaction. Massive seeks to give a new source of revenue to developers, provide a new venue for advertisers to promote their products, and enhance the gaming experience of gamers through in-game advertisements. Leadership. As rivalry heats up in the in-game advertising industry, Massive wants to be ahead in the competition. The company seeks to become the number one choice of advertisers by gaining a strong foothold in the market. Leadership can be measured by looking at Massive's market share relative to its competitors. Massive Incorporated is a player in the in-game advertising industry. This industry is primarily responsible for the placement of ads in video games in different platforms. This industry is a response to the declining television viewing as males aged 18-34 spend more time playing games. This age group which represents a huge proportion of the global market is one of the highly sought demographic segments by advertisers. However, as they turn to video games for recreation, advertisers need to find a way to incorporate advertisements during playtime. Though Massive pioneered in-game advertising, business organizations have been very quick to realize the potential profit gain from this segment. Together with Massive, Double Fusion and IGA Worldwide captures the largest market shares. Some smaller start-ups and players in the video game industry are also taking the challenge of in-game advertising. Yankee Group reports that there are about 112 million people aged 13 and above in the United States participating in some form of electronic gaming. It is forecasted that the number will grow to 148 million in 2008. These gaming activities are being conducted on four specific platforms like consoles, personal computers, handhelds and mobile devices (Shields, 2005). Despite the rapid growth of the video gaming industry, it also faces numerous challenges. It should be noted that customers now demand the creation of video games which have more sophisticated story lines and graphic improvements. This has resulted to higher production costs as well as longer production time. On the other hand, the average commercial life of a video game has significantly dropped to less than one year. With the increasing competition among industry players, companies are launching new strategies to attract