Valve Swot analysis

Valve Swot analysis

Valve is an international corporation that focuses most of its energy into the development, innovation, publishing, marketing and the sale of video game packages, mobile and online interactive games. Valve can produce and distribute games that are compatible with several platforms such as X Box 360, Sony PlayStation 4, Nintendo. The Company also provides a version that is played on PC. The developers of the Company have ventured into the distribution of games for handheld devices for PSP, Apple iPod, Smartphones as well as Nintendo DS. The Company has expanded its operations to 35 countries across the globe.

Weaknesses

There are instances where Valve us forced to downsize meaning that almost 17% of its workforce were to be laid off; also the Company closed down nearly 9 of its video producing studios. Because of market forces, the Company had to lay off their Head of casual entertainment four months after she joined the workforce. The second weakness of Valve Company is that the type of software they develop is dependent on the platforms which they are played on. Thus, often there are limitations in graphics, capabilities as well as game performance. The other weakness is that the game release times have to be strategic in certain times of the year, such as spring or Christmas. Any slight complication or error could have severe implications for their sales or make their items less profitable.

Opportunities

Valve, as a gaming company, has the chance of acquiring websites which can be used as a gaming-based social network. The Company can obtain new Korean-based developers to improve their development of PC games. There is a unique opportunity in the US where the army requires simulation training, and Valve can give the material to achieve these objectives. Innovations in the modern day have led to the rise of new interactive training tools such as instructional coaching and voice commands. Valve can develop a line of sports toys that use electronics to reward children when they apply proper strategies.

Threats

Profits and revenue for the Company depend on the prolonged purchasing of gaming software and consoles. If the sale of certain gaming consoles is slow, then the effect spills over to game sales. There is a serious threat facing the gaming industry and is software piracy. An example of piracy is in South Korea where laws are not implemented, and software ends up being pirated, and this negatively impacts valve cutting into the profits.