In a fast-growing international gaming market, ABZ Corporation stands as an ambitious business looking to expand into four different markets: Japan, the US, Korea, and Germany. Through strategic analysis, this research looks into four separate markets within the gaming industry. Observing market sizes, consumer trends, and technological advances, consumers are playing international games differently. This information will help to accurately anticipate some trends that ABZ Corporation should notice and then go through with those trends.
Japan’s mobile games market is expected to grow to a size of $19.93 billion in 2027, reflecting Japan’s strong cultural connection between its citizens and gaming. This throws up a huge growth potential for industry players in terms of expanding their consumer base, as the market is also poised to have a user penetration rate of 31.1% by 2027 (Statista, 2024). The gaming industry in the United States is a huge market and is projected to be valued at $57.91 billion by 2024, the largest portion of which will be going to mobile gaming, which is going to be 60% of the total market share (Kristianto, 2022). This market is a wide range of genres of games played by American gamers, ranging from action games to puzzle games. Because of this, it is clear that Americans have a wide variety of tastes in entertainment. Mobile games are a big part of the gaming sector, owning 64% of the population who play video games in the US, and this shows the wide reach of interactive digital experiences on handheld devices across the United States. Gaming became a part of Korean Culture when it rose to fame through games such as “League of Legends” or even “PlayerUnknown’s BattleGrounds” (PUBG). In 2022, South Korea expects gaming to be heavily involved with their daily life; about 73% of Koreans are gaming fans, and this is one of the reasons why South Korea is one of the eSport Titans in the world, leading along the way in the gaming industry (Global Data Plc, 2021). Supporting this statement is Korea’s dedicated and efficient infrastructure that has nurtured the right conditions for the growth and development of its online gaming community. With all of these factors, it is considered an official sport for South Korea. According to reports, Germany’s gaming industry is expected to grow at a compound annual growth rate of 9.05% between 2024 and 2027 (Statista, 2024). As opposed to how some would think, it is the older demographic that makes up 18% of consumers in the German market, aged from 50 to 59. The different age ranges of consumers in this market strike a contrast between the common stereotype of gaming being for younger individuals, thus creating a sense of inclusivity for all in the gaming community in Deutschland. This suggests that an ABZ Corporation entry into this market will be on solid ground.
The industry of video gaming competitors, when viewed through Porter’s five forces framework, is a highly diverse and dynamic market with a plethora of industry dynamics. On a larger scale, the entry barriers to new competition are low in countries like Japan, the United States of America, South Korea, and Germany. This provides the consumer with an easily accessible market environment that caters to increasing competition since new competition may easily enter. The lower entry barriers made available often cause for a more saturated marketplace since more competition is entering the market. In all the markets, buyer power is with the buyers due to the sheer choices available to them. This means that as there are a lot of choices available to them, the power is with the buyers, pushing the companies to continuously innovate and provide better products and services to acquire and retain buyers. (Porter’s Forces). The US market is highly intense in terms of rivalry. Many of the companies in the market are major industry players, and they constantly introduce innovative products and services that evolve consumer expectations. Because of this, business owners are constantly in the process of strategic planning, developing new products, and so forth to maintain their competitive position in the industry. The major competitors are LG, Plantronics, and so on. The supplier power is moderate for all markets except the Paper Uniject, where it decreases but is still moderate. This says how much power they hold suppliers. Using his twenty power is excessive. Menorah is well on the market completely. Thus, to determine that there is not too much decreased power.
The PESTEL analysis conducted here is an abridged version of the entire study, focusing solely on external factors that influence their business activities currently or in the future. Politics within the regions of interest seem to be fairly stable. However, due to ABZ Corporation currently only operating in one country, political stability is not a current threat to strategic decisions being made. Economically, the three areas of interest for expansion are all experiencing extremely promising growth within the gaming industry. This appears to be sustained by a cultural decision to participate within the gaming industries due to the segment’s growth within society and, in reflection, by market size. Technologically, Japan and America remain in the lead, as they have been known to be advanced nations and still have a renowned status of being innovators. This would definitely make it easier for ABZ as they have relied heavily on research and development in these countries. Across all markets, there is emerging concern about environmental factors, particularly around e-waste. The implication of this is that there is an increasing need for ABZ corporation to adopt sustainable practices and contribute to responsible e-waste management as part of its social corporate responsibilities. Myriad legal factors plague the industry with the various legislations that guide the gaming companies. With the uniqueness of each company in terms of their products, each company has set proprietary rules that govern the use of their gaming products and services. This brushing means ABZ Company has to have legal compliance and intellectual property management, which are spelled out for each market it intends to navigate.
With an expansive market size and an incredibly varied consumer demographic, The United States is the first market that ABZ Corporation should look at for opportunities and offer the most diversification and market growth. The dynamism of the national market is unparalleled and highly receptive to new gaming experiences. Likewise, Germany is a significant market in terms of international expansion. However, the decision to enter rests upon the rapid expansion of the market as well as significant gamer engagement across a wide spectrum of ages. Both markets significantly suit ABZ Corporation and its corporate strategy to secure its standing in the global gaming industry.
References
Statista. (2024). Video Games – Germany | Statista Market Forecast. Statista; Statista. https://www.statista.com/outlook/dmo/digital-media/video-games/germany
Global Data Plc. (2021). Market Size of Video Gaming in South Korea (2021, $ billion). Globaldata.com. https://www.globaldata.com/data-insights/technology-media-and-telecom/market-size-of-video-gaming-in-south-korea/
Kristianto, D. (2022). 2022 Gaming Spotlight: Mobile Extends Lead Over PC and Console as Gaming Market Hits $222 Billion | data.ai Blog. Data.ai. https://www.data.ai/en/insights/mobile-gaming/2022-gaming-spotlight-report
Statista. (2024). Mobile Games – Japan | Statista Market Forecast. Statista; Statista. https://www.statista.com/outlook/dmo/digital-media/video-games/mobile-games/japan
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