Table of Content
Executive Summary 3
I) Introduction: 4
II) External Analysis: (see exhibit 1) 4
III) Internal Analysis: (see exhibit 2 and 3) 6
IV) SWOT Analysis: (see exhibits 1, 2, and 4) 8
V) Current Strategic Posture 9
VI) Strategic Alternatives and Recommendation 10
VII) Implementation: 11
VIII) Conclusion 12
GAMETRONICS (here on called "GT") has currently heard rumors that Sony Corp. is planning to partake in a hostile takeover of GT. The major shareholder of GT, Martin Fueller, will not support this takeover, provided management of GT produces a long-term strategy for the company.
GT has many problems within its organization and the external environment is not one that provides many opportunities. Two hardware companies dominate the software designers and rivalry is fierce between these designers. Inside GT, they are experiencing numerous manufacturing problems and their R&D has failed to produce a blockbuster.
All this has lead to squabbles between the various divisions of GT and inter-company co-operation is declining.
As such, GT should re-focus its game design to the personal computer market. This should be coupled with an expansion into the educational software industry through the creation of a joint venture or the acquisition of Educomp, an Indian company already having success in the educational software industry.
GT is a manufacturer of video game software that began as a division of Protoinfo Inc., a corporation owned by Martin Fueller, in 1980. After initial success as a division, GT became a wholly owned affiliate with Harold Green as the President. In 1985, Fueller took GT public, selling 57.5 percent of his shares, but was able to maintain effective control as no other single shareholder held more than 20 percent of the stock. In 1994, Harold Green announced that...