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Valve Corp. SWOT analysis


grimdercell

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Hi everyone, I need some help from all of you for my Business and Management Extended Essay project which I'm going to write about the corporate culture of Valve. I'm currently constructing a SWOT analysis on Valve, and I really appreciate it if you guys could suggest some ideas or thoughts about this.

 

Basically, I will need you guys to think of a few points for each of the following:

 

- Strength of Valve 

- Weaknesses of Valve

- Opportunities

- Threats 

 

Please be serious when posting as this project is very important to me :(

 

All ideas given are greatly appreciated, thanks :)

 

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Weakness of valve ? Too many Americans dont know about it. And think xbox, sony, nintendo. So lots of competition and not enough advertising for when they launch steam machines. 

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- Strength of Valve: Have close ties to their communities and listen to what their fanbase wants for the most part

- Weaknesses of Valve: They have very few original games, they mostly buy out other franchises and make sequels, leaving them to deal with complicated areas of the law as seen in Dota

- Opportunities:Continued support for their games

- Threats: Microtransactions. There is a movement starting against them and that is Valve's pride and joy.

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Christley </3 Peelz

- Strength of Valve 

the huge amount of games and their cheap prices. also the userbase loves valve. they can keep back on ep3/hl3 for over 5 years and people still think valve is the best.

 

- Weaknesses of Valve

all the phishers, their systems are often down. so the biggest weakness of valve are their servers which are very unstable. all around. not only tf2.

 

- Opportunities

every possible opportunity. they are going slow and steady, yet fast. they can test so much things (steamos, steam controller, steammachines etc) because they have yet to make a terrible game/platform. so people generally speak highly of valve

- Threats

^this video pretty much shows the threats

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- Threats: Microtransactions. There is a movement starting against them and that is Valve's pride and joy.

I think people get mad at that since they paid for a game and then there's micro transactions. The only game that VALVe has done so far that does that is CS:GO to my knowledge.

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Christley </3 Peelz

- Strength of Valve: Have close ties to their communities and listen to what their fanbase wants for the most part

- Weaknesses of Valve: They have very few original games, they mostly buy out other franchises and make sequels, leaving them to deal with complicated areas of the law as seen in Dota

- Opportunities:Continued support for their games

- Threats: Microtransactions. There is a movement starting against them and that is Valve's pride and joy.

 

 

mostly? what more games have they done that with excluding dota?

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Weakness of valve ? Too many Americans dont know about it. And think xbox, sony, nintendo. So lots of competition and not enough advertising for when they launch steam machines. 

So can I consider their weakness to be something like, lack of marketing advertising? Because various competitions would most likely be considered a threat to valve instead.

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Strength: Faithful user base, increasing user base, ability to sell games at lower prices, acts as a publisher for many game companies, largest PC game distribution platform, lenient DRM (you can trade games for in game items, enough said)

Weakness: The huge sales could stop, killing a lot of the userbase

Opportunities:  sell games more games by AAA producers. I know this isn't what we really like, but it brings in a lot of money.

Threats: Origin, U-Play, those. There are games that are "exclusive" to these platforms that may draw people over. Battlefield is one of my guilty pleasures, and I have to use origin for it. 

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mostly? what more games have they done that with excluding dota?

Team Fortress, Left 4 Dead,  Alien Swarm, Counterstrike, Day of Defeat. The latter two are mods of valve games that valve purchased the rights to and put out a full game.

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I think this could help you a bit actually: http://www.reddit.com/r/NoStupidQuestions/comments/1sqal4/why_is_valve_considered_such_a_wonderful_company/

 

 

Like Blizzard, they have a small--yet extremely high quality--library of games. Their "it's done when it's done" approach means that the one great game that comes out every few years is better than getting a rehash of the same mediocre game that gets crapped out every year.

Like Netflix and other (I am loathe to use this word) "innovative" companies, they came up with something (Steam) that was just what people wanted even though nobody was asking for it. In fact, people were pretty skeptical of Steam when it first came out, but Valve did it well and now everyone loves it.

 

 

 

I think valves popularity comes down to steam. It was one of the first programs that allowed you to go online to download and play a game. At first there was some pushback from people fearing another company controlling their games.

Really half life 2s requirement of steam pushed the product. Then as people saw that steam is low profile and not a resource hog , it started to become very popular. Even today steam is not a huge resource hog (im sure someone will correct me if im wrong). Steam today has a Huge library with constant new content and GREAT sales. Before steam I do not remember a single vendor that sold games with prices as low as steams. Oh did I mention I can install steam games on any pc with internet as many times as I want?

Its hard to do it justice without looking like a fanboy. But just compare it to other products like it. Say ORIGIN which i have to use for BF4.

Steam works straight forward. You either buy the game IRL and install it to steam or you buy it online then download and install it. After that steam keeps the game updated (and lets me choose when to update). It gives me a lot of info as far as how the games effect my storage space. Once updated you just launch the game and its done. I also always have the choice to go into offline mode and no internet is required to play single player content (at least as long as the game itself is setup for it).

It just feels solid to use all around with all its community tied in through a lightweight client.

The only complaint I ever really had was my personal difficulty to really understand its file/folder structure when I used to make HL2 / CSS maps but even all of that editing and modding is supported in steam.

Compare that to BF4 on origin. I launch origin which seems to take longer to load in the first place. Then the Buying BF4 felt ok (dont remember being pissed about something). Now After vaguely mentioning something about filesize it starts downloading. All I got after that was a picture with a progress bar saying :" downloading" . I then could not tell how much was left to download or how fast i was downloading or how long it might take. This is truly industry standard to do. Then launching the game it takes me to stupid web browser. So now I need 2 applications running before the game itself starts, even if I want single player I need the web now 24/7.

This might be mostly BF4 stuff. But origin just feels so much clunkier.

TL:DR : I think Valve is so loved because steam is so good compared to the rest of the download portals.

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http://www.mcvuk.com/news/read/breaking-the-steam-monopoly/0123983
http://www.escapistmagazine.com/articles/view/issues/issue_245/7285-Steam-A-Monopoly-In-the-Making
http://truepcgaming.com/2013/11/15/tpg-asks-about-the-steam-monopoly/

 

Steam's anti-competitive practices and their rigid DRM fall under both Weaknesses and Threats. Their complete lack of competition so far has been a major Strength, but now that more digital distribution services are entering the market, Valve needs to react to them more directly.

 

Other Threats/Opportunities include the low market share of PCs in general. Not only do consoles have a wider use due to simplicity, but with cloud gaming starting to get a foothold (although admittedly OnLive has not been successful, others like Kalydo, Gaikai, and Playcast Media Systems are still doing R&D). While Steam has announced their own console (and it is in beta), we won't know how successful it is until release.

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❤ΣκαπανέαςGr❤

strenght of valve:

You cant play tf2 if you don't have steam.

what more you need other than that?

 

ppl are following team fortress for 16 years now in an ever growing community.

if tf2 is sold to origin i ll use origin till then there is no other option really.

 

they have the best team based fps multiplayer game ever created so steam is a must have either you have a window apple Linux or steamOS pc.

 

maybe you need to focus on the openess of the steam corp in every aspect.

 and how you own the games you buy and they dont get outdated every year.

if you like your 7 year old game you can still play it in your brand new machine.

 do that to a xbox nintendo sony crap console.

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