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Take Two Interactive (TTWO)

Take Two Interactive (TTWO). Group 12. Agenda. SWOT Analysis Strategic Objective Recommendations Risks & Assumptions Implementation Rejected Strategies Wrap-up. Strengths: Rights to Grand Theft Auto, the largest video game franchise in the world

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Take Two Interactive (TTWO)

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  1. Take Two Interactive (TTWO) Group 12

  2. Agenda • SWOT Analysis • Strategic Objective • Recommendations • Risks & Assumptions • Implementation • Rejected Strategies • Wrap-up

  3. Strengths: Rights to Grand Theft Auto, the largest video game franchise in the world Pure play competitor in interactive entertainment software games Strong crossover of brands into other entertainment industries Weaknesses: Overly dependent on the success of GTA Opportunities: Changes in the console market Price cuts by Summer 2004 Sony’s PSP launch Overall growth in the software market Threats: More software developers plan to compete in the mature market Lessened demand for M-rated games SWOT Analysis

  4. Recommendations • Growth Strategies: • Diversification: • Lessen dependence on GTA, Max Payne franchises • Development of new, non M-rated franchises • Reduce business risk • Strategic Alliances: • Increasing cross-over with music, movies, cartoons • Generate significant revenue and publicity • High barriers to entry in entertainment business • Partners share specialized knowledge of their individual businesses

  5. Strategic Alliances • Movies: • 67% of customers more likely to buy/rent games with tie-ins to movies • 50% of all Americans age six and older play video games • Growing trend: • Tomb Raider, Final Fantasy, Lord of the Rings, Resident Evil • Music: • Video games appeal to a target demographic of 18-35 year olds • Same audience that buys CDs and listen to MP3s • Steven Spielberg: music and sound represent 50% of the value of his films

  6. Strategic Alliances - cont’d • Cartoons: • Agreement with Cartoon Networks to acquire first-look rights to develop and publish video games for all new Cartoon Network branded properties • Appeal to Cartoon Network’s core 6-11 year old audience • Merchandising: • Action figures, t-shirts, toys • Ties in neatly with cartoon-related franchises

  7. Questions?

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