Growth Analysis

In the target customers article, it was determined that there are approximately 17.1 million people that make up the target audience of SIE. Given that the target audience meets the criteria of being self-proclaimed gamers and preferring play on consoles, it is a given that some of that target audience only play on competitors’ consoles. Following the current SIE Brazilian market share numbers of about 48%, we can estimate that at the beginning of this growth phase, SIE is currently serving 8.2 million customers. In order to reach a goal of majority market share—51%, SIE should be aiming to grow to initially serve approximately 8.7 million customers, or 500,000 new customers. This can be done by investing in a Brazilian PSN data center and building a factory in Brazil to manufacture consoles.

According to ICTSD, the total up-front cost of an on-premise server costs $20,920 (ICTSD, n.d.). Assuming that three servers per data center are needed to account for projected growth numbers, the total cost of the servers will be $62,760. The total construction cost of a 15,000 square-foot factory with concrete block / bearing walls is $1,843,350, according to the price per square foot listed by RS Means (RS Means, n.d.). Factoring both costs, the total initial investment estimate to build the facilities necessary to accommodate expected growth is $1,906,110.

Next: Personnel Analysis

References

(n.d.). How Much Does A Server Cost For A Large Business? ICTSD. https://www.ictsd.org/business/how-much-does-a-server-cost-for-a-large-business/

(n.d.). Construction Cost Estimates for Factory, 1 Story in National,US. RS Means. https://www.rsmeans.com/model-pages/factory-1-story

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