PESTEL socio-cultural factor Virtual Worlds

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PESTEL socio-cultural factor Virtual Worlds

  1. 1. PESTEL : Media Management VT09 HHS Andreas Bockisch | 70363 | 70363@student.hhs.se Celeste Cantú Alejandró | 70364 | 70364@student.hhs.se Nina Steiner | 70385 |70385@student.hhs.se Alejandra Fernandez del Valle | 70391 | 70391@student.hhs.se
  2. 2. What is a Virtual/digital World <ul><ul><li>Interactive simulated environment accessed by multiple users through an online interface </li></ul></ul><ul><ul><li>&quot; There are many different types of virtual worlds, however there are six features all of them have in common: </li></ul></ul>Shared Space Graphic User Interface Inmmediacy Interactivity Persistence Socialication/community
  3. 3. Examples of Virtual/digital Worlds <ul><ul><li>There are at least 30 Virtual/digital Worlds </li></ul></ul><ul><ul><ul><li>Second Life </li></ul></ul></ul><ul><ul><ul><li>Active Worlds </li></ul></ul></ul><ul><ul><ul><li>Entropia Universe </li></ul></ul></ul><ul><ul><ul><li>There </li></ul></ul></ul><ul><ul><ul><li>Multiverse </li></ul></ul></ul><ul><ul><ul><li>Varst Park </li></ul></ul></ul><ul><ul><ul><li>Metaplace </li></ul></ul></ul><ul><ul><ul><li>Club Penguin (pre-teen) </li></ul></ul></ul><ul><ul><ul><li>Webkins (pre-teen) </li></ul></ul></ul>www.virtualworldsreview.com
  4. 4. PESTEL <ul><ul><li>A PEST(EL) analysis is a strategic tool for understanding market growth or decline, business position, potential and direction for operations. It is used when a business enters new markets and new countries. </li></ul></ul>SOCIO-CULTURAL FACTORS demographics, lifestyle trends, population shifts, education, health, living standards, leisure activities, etc.
  5. 5. Trends in the usage of Internet http://www.internetworldstats.com/stats.htm
  6. 6. Socio cultural issues <ul><li>Social factors profoundly impact user behavior, influenced by subjective norms as well as attitudes. </li></ul><ul><li>From social psychological and economic perspectives, two types of social influence are distinguished: </li></ul><ul><li>social norms and critical mass. </li></ul><ul><li>Social norms consist of two distinct influences: informational influence, which occurs when a user </li></ul><ul><li>accepts information obtained from other users as evidence about reality, and normative influence, which </li></ul><ul><li>occurs when a person conforms to the expectations of others to obtain a reward or avoid a punishment. </li></ul><ul><li>Enhance knowledge </li></ul><ul><li>Identification with or against society </li></ul><ul><li>Compliance </li></ul><ul><li>Sharing opinion without exposing themselves </li></ul><ul><li>Avoid rejection and hostility </li></ul><ul><li>Influencing individuals </li></ul><ul><li>Generation of new identities, ”cultures” </li></ul>Hsu, Chin-Lung & Lu, Hsi-peng, 2003
  7. 7. AGE http://www.theesa.com/facts/index.asp  Growing number of Virtual Worlds for young users
  8. 8. Second Life: Age and Gender User’s ages <ul><li>60% Female </li></ul><ul><ul><li>Top 5 countries: US, Germany, Brazil, Japan, UK </li></ul></ul>Resident market share by age tier Average monthly hours by age tier http://static.secondlife.com/economy/stats_200710.xls Melanie Swan Age %   13-17 1.23%   18-24 27.16%   25-34 38.88%   35-44 21.13%   45 + 11.61%  
  9. 9. Usage of Virtual Worlds <ul><li>Stanford Research Institute found out that 25% of all users spend more than 20 hours per week in Virtual Worlds. </li></ul><ul><li><1 hour           12.5% 1-5 hours        26.3% 5-10 hours     15.0% 10-20 hours   21.3% 20+ hours       25% </li></ul><ul><li> High engagement might substitute other media consumption (TV) </li></ul><ul><li>http://virtualworldsig.com/2008/03/ </li></ul>
  10. 10. Forecast wirtual World Adoption <ul><li>http://www.worldsinmotion.biz/2008/06/strategy_analytics_1_billion_v.php </li></ul>1 billion users in 2018 BUT: Growth of Second Life seems to slow down Maybe reaches its peak soon  Need for new concepts
  11. 11. Future of Digital Worlds <ul><li>the value of technology to a user increases with the number of its adopters. As email systems increased in popularity, for example, they became increasingly valuable, attracting more users to adopt the technology. </li></ul><ul><ul><li>Virtual Worlds are created for the new generations: Club Penguin (Pre-teen), which might evolve as new needs might arise in the generation involved. </li></ul></ul><ul><ul><ul><li>They are here to stay and make a generational change (including adiction to the game) </li></ul></ul></ul><ul><ul><ul><li>Subtituting TV advertisement  digital advertisement </li></ul></ul></ul><ul><li>Disruptive change, caused by technology and socio-economic changes, due to trends in usage of Internet. </li></ul><ul><li>USA military is using virtual life to recruit new memebers. </li></ul><ul><li>Companies are using them to learn from themselves </li></ul>
  12. 12. Conclusions <ul><ul><li>PEST analysis looks at the external business environment and is an appropriate strategic tool for understanding the “big picture” of the environment in which business operates and gives implications how to enable future opportunities and minimize threats. </li></ul></ul><ul><li>The demographics profile of virtual worlds shows users who are young but more educated and more affluent than the general public. The phenomenon already reached the stage of a mainstream application, the growth rates seem to slow down. </li></ul>
  13. 13. References <ul><li>Hsu, Chin-Lung & Lu, Hsi-peng, 2003, “Why do people play on-line games? An Extended ATM with social influences and flox experience” , Department of Information Management, National Taiwan University of Science and Technology, Taipei, Taiwan, ROC, November 2003 </li></ul>

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