Case Study on Games Companies Play in Markets

Case Study on Games Companies Play in Markets


A game in the context of business may be defined as strategies or simply feasible actions given in a set, with rules for the players involved to observe. The players often combine the strategies to come up with a win from the competition, making up decisions which normally pay off in the end. The games could be cooperative or even non cooperative at all, having the players in a formation resembling a coalition or the players go as individuals. The players can come up with decisive piece of plan which is always deemed feasible, a notion called a strategy for winning the game played. The games played by companies often have a set of rules which are to be adhered to in terms of defined feasible strategies, cooperation and a time frame. In the end, firms may be regarded as rational decision makers or inform a behavior from another company. All this detail is envisaged in the analytical frame work of every company. A research question in this work is: Are the games played by companies benefitting them in any way together with the customers? This paper hypothesizes that the games played by the companies benefit them together with their own customers.

The outcome of these games is normally determined by how much these companies have on each other. In most cases analytical frameworks are normally used in a research, bringing a combination of analysis patterns to be able to come up with an appropriate solution to a certain problem in the economic industry. This is normally done with the help of useful organizations, techniques and the approach of using the examples specifically with a certain rate of a successful. The Nash equilibrium says that whenever a player has settled on a decision given that the other player’s decision or choices have been made, the game will have Nash equilibrium, and may even have multiple or no equilibrium at all. A firm may decide on quantity or even the pricing of the goods they produce, but not all the items at play. Tools, techniques and checklists are normally in cooperated by analytical frameworks to carry out a research in a particular area, such as a certain type of architecture or even a business analysis. Whenever accompany is looking for certain characters or skills to meet the general societal demand in which it prevails in, it tries to employ this patterns of analysis in its frame work. If it happens that a certain candidate demonstrates a character trait or the experience and abilities which are listed in that particular frame work, they are deemed likely to be successful in the tasks assigned to them thereof.

Understanding the Analytical Frame Work Structure

Take for example you are trained in doing carpentry and your employer has assigned you some work to carry out. If the workshop of your employer happens to be poorly equipped with the tools required to carry out your duties, then automatically your innovation techniques are bound to be limited to the confines of the tools at your disposal (Lieberman 163). But if it happens that the working environment has been equipped with almost all the tools relevant to your work as a carpenter, you are capable of coming up with new and greater complex pieces of design. Having said that, an analyst may come up with a better conclusion given a provision of powerful tools of analysis, various successful examples at their disposal coming hand in hand with a set of modeling approaches which will definitely boost their information however complex the data might seem.

A frame work of analysis is normally composed of together by five major components; use full patterns for analysis, models for analysis, skills and techniques for carrying out a research, different tools and lastly the methods which will be used for presenting and grouping the data which seems complex. Whenever analyzing a business frame work, the tools used to capture processes and articulate the facts together are basically the soft wares used to come up with various models (particularly models like unified modeling language, UML) which are used to capture various case studies. These tools can be made to accommodate simpler versions for data analysis and presentation. The patterns which are applied in the analytical domain includes all aspects business system patterns (taking of orders in the company), the industrial patterns such as packaging for shipping and scheduling for distributions in the organization. Whenever you apply certain themes in a business repeatedly for a given period of time, these trends tends to create patterns which are therefore observed in this frame work analysis (Lieberman 203). Application of an Analytical Framework

A frame work of analysis can be applied to a business study in regard to three basic situations. To be able to understand these situations, we look at them differently. First, whenever a change of the role being undertaken by an individual in the business setup is desired. An example could be a scenario where one changes from being a system analyst role to a more defined test analyst role. Both of these two roles are completely different from each other since they happen to bring out a different product having a different documentation in the process. Whenever such a situation arises, it happens to be a complex matter in resolving for a transition. One only needs to call upon a certain guide of analytical framework from any system which abides by the rules of a certain institution, to assist them in this transition process.

The individual has a choice of only taking into account the analytical frame work of every section in the institution and their work becomes very easier in the sense of the transition process, thereby reducing on time wastage which would have occurred had they not opted for an analytical approach. The second area for which analytical frame work comes in handy is whenever an outsourcing of skills has to be done by an organization.  Normally, most of the companies do make an assumption that the group being outsourced to carry out a certain piece of work on behalf of a certain department has all the experience required to carry out this mandate. But this is never true to the letter. The easiest way to come up with an informed conclusion about their ability is by looking at the presentation of artifacts given in the picture which depicts the teams abilities, skills and there by building on the confidence for the company in the team. All this is simply looked up for by an analytical framework (Lieberman 214).

Thirdly, whenever training is to be carried out in a company, the easiest to do so is by employing the works of an analytical frame work. A team’s ability needs to be improved regularly to be able to enhance its capability to carry out its mandate properly. The essence of bringing an analytical frame work into play is simply because it assesses with ease the necessary tools, elements, patterns, and skills possessed by the individual people in the team, there by indicting the necessary additions required by the team. Assuming one is a senior software developer for a company which has just moved you to a new elevated position of being the company chief architectural developer. The company staff looks upon you to explain to them the technical details en compassed in the new development taking place in the company. Without further ado, you set out on an expedition to learn all about the system and its architecture. To be on the safer side, all you need to do is to look at the analytical frame work and make several decisive judgments since even though you happen not to have been involved in the development of the previous architectural designs, you already have an idea of what the similar designs to this new entails. This can be done easily by having a look at the various technical aspects of the design and the models which have a similarity to the current design.

Process of Creating an Analytical Framework

Whenever firms compete to come up with different retail prices, the consumers always make a decision on how much to buy and at what price for a certain commodity given a set price by both the firms. This is normally envisaged as totally different from the quantity competition. This will in turn bring about a discontinuity in demand there by affecting the discontinuity in profits. Thus an analytical frame work will always put in check the best response as a function of one firms market pricing which brings about its concept of profit to another companies market pricing. Whenever a completion emerges between two companies a situation which demands the outlook of the consumers, there happens to be a constraint on the capacity as a whole (Mornell 43-44). Therefore it’s better to first determine the capacity of production and the find out the marketing price of their units. This can best be done by using an analytical frame work which has all the appropriate tools and patterns for doing the necessary job.

Consumers are always there in the market, ready to purchase things they do not eve need. This motivates the companies to quickly come up with newer strategies and incentives for enticing the customer who is always ready to buy. This in turn fuels the consumers to get to a point at which they do spend a lot more than they had anticipated. This has always been the case since the customer believes that a particular commodity may not be there tomorrow when they come back, they would rather spend more money a one set up and go home with that particular item. Companies also play a game of quick rotating strategy, which comes in conjunction with the one day specials. The fact that a customer might have left the house when not ready to by a certain commodity, the one day selling price tag is usually very enticing and might lead to an anxiety mode by the customer thinking that tomorrow a certain commodity which has a reduced price for that particular day may not be there when they come back tomorrow. Whenever purchases are made by consumers in an anxiety mode or a panic mode, the decision to buy is very much likely to be a poor and less informed strategy, which is bad for an analytical framework. Companies will always play the game of relying on rapid turnover, a plan and strategy to continue benefitting and claiming that the customers will always be kept steadfast to the rapidly changing fashion trends.

Whenever companies play such games, other scenarios will eventually arise. There is the case of a merger by two firms. Mergers can only arise whenever knowledge of an innovation or a technology has arisen. The two have a greater driving power in the global firms’ economy, since it usually depicts a greater strategic alliance. Mergers as a whole normally takes place for improvement of the product quality diversify the product and also expand the market. Others may have in their minds a formation of a cartel to be able to counter the rest of the companies in the region, which in turn brings an increase to the cost efficiency. Mergers are often regarded as the most visible threats to competition in any region. One should also note that the farm which has been merged is still similar to the others which still existed in the region. Therefore, if it happens that the formed merger rakes in a greater profit and creates sufficiently large cost savings then the merger is so considered a greater game for the companies (Mornell 53).

A merger has a leader firm being larger than the follower, and in any case they happen to be more profitable. A Stackelberg model always has L as the leaders and F to portray the followers in the industry, hence  L + F =N  and if  one wants to find out if a merger profitable, given N, L and F as shown, then :

The two forces which countervailing is

  1. Less followers remain → profit grows
  2. More leaders’ → profit declines for each leader.

A merger in which 2 followers have come together will be more profitable if, the above expression is always positive hence firms will always want to merge. Mergers also happen to be of harm to the consumer in that if two firms have decided to come together, the position of the consumer in the chain worsens. The firms are going to benefit in that several factors are at a balance, for example the firms merging happen to lose their separate identity but do not lose the control over the product variety. Therefore the merger will always tend to increase the profits of the merging firms but the consumer is the most hurt, according to most analytical frameworks conducted.

Another game at play in most of the companies is the process of off shoring. This can only be understood by looking at various activities together and then having them distinguished, the factors which leads to the production of goods and services. The diagram below depicts the activities order of formation.

Any product has many different activities involved in its manufacture. Panel (a) lists some of these activities for a given product in the order in which they occur



Relative Wage of Skilled Workers 

The first assumption is that foreign wages are less than those at Home, so

Also, that the relative wage of low-skilled labor is lower in Foreign than at Home, so

The scenario given depicts that the costs incurred for labor in foreign land is lower but the costs incurred for doing business in foreign land is higher. These costs tend to be higher because they include the construction costs of building the company itself going hand in hand with the cost of production for goods and services. When coming up with the decision to venture into the foreign land or offshoring, the company cuts on higher costs of construction and production with that of cheaper labor. This is referred to as the value chain slicing (Mornell 74). The company may only improve on its chances in a foreign land by coming up with strategies like making a market concentration which is indeed good for the innovation. All these can rather be achieved by coming up with an informed and better analytical framework for the reference of the better good of the company.

Whenever a company starts researching and developing new ideas, technologies and innovations, it spends a lot of money which could be justified since the industries concentration in the market increases rapidly. The technical advancement of the company will be evidenced by the fact that it will be able to sustain itself through coming up with a proper analytical framework, that will encompass all the tools, skills, technology and innovations required for the betterment of the company’s fortunes. The company’s research and developmental activities are more driven by the innovation rather than the size of the company itself together with its financial might.


If companies came together and started cooperating in the activities such as research, development and extension services, they would benefit a lot given the fact that they are bringing together a collectiveness of greater knowledge, power experience and expertise. This would really help most of the companies by reducing wastage of resources which is used for repeating the same thing over and over again for a every innovation they try to pull off, rather than coming up with a cooperation which will cut down on completion and focus on amore developmental and results oriented research. By so doing, the company’s fortunes will increase to a substantial amount. This will also increase the output and give the consumers a greater opportunity to buy at their own will, whenever it deems fit and necessary.

This will also stop the customer discrimination as is seen by the door delivery system of business where the customer is always charged the price depending on the distance covered to their homes rather than service delivery, a norm seen purely as monopoly of the whole system. In a challenging environment for most of the firms, a variety of tools and techniques, together with patterns and models should be employed to come up with a system that is sustainable having encompassed all the elements required for a success full business. And by creating together with adapting analytical frameworks, one will absolutely prepare ahead before time for a better result.


Works Cited

Lieberman, Benjamin. Applying an analytical framework. New York: McGraw-Hill, 1977. Print.

Mornell, Pierre. Games companies play: A job hunters guide to playing smart and winning big. Stanford, CA: Stanford Univ. Press, 2004. Print.