Analysing the firm’s brand image is quite beneficial when looking at the launching of a new product. It helps to give some information of the Philips Company to the consumer. This could be information such as the reputation of the company or its dominance in a particular market. This allows a judgment to be made on whether the company has the brand loyalty, finance and technological facilities in which to produce a new product and assure fulfilment.
Philips is a PLC (Public limited company). This is a business, in which anyone can buy and maintain shares. This shows that Philips are a big company and this gives the company an advantage of raising large amounts of money by issuing more shares so if they decide to release a console they can raise a huge amount of money to finance the development of the console. The promotion and advertising can be financed and banks are more likely to lend money to the business as they know that Philips are a big company that can probably pay back loans in the long term so this can be used to finance the console too. I think that as Philips are a PLC and are technologically advanced they have an advantage of covering research and developmental costs and also start up costs
Sony has taken control of the video games console since 1996, and is now concentrating its dominance with the launching of the November 2000 launch of the Playstation 2 (source Keynote Website). Due to this the games console market has been under immense competition, with Sega expanding elsewhere consequently it has made way for Microsoft launching its Xbox in March 2002. Additionally Nintendo have launched its gamecube in 2001.
A common problem that can be seen is that the forecast data for Electronics games market is merely estimation and therefore it is not as reliable. This could cause problems for Philips as entering the market with false predictions may have serious consequences.
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