Valve Corporation Final Project

4218 words 17 pages
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Introduction ……...………….……..………..….……………………………………………………………………………….. 3
External Analysis …………….…………….…………………………………………………………………………………….. 3
PESTEL Analysis ……………….……………………………………………………………………………………………. 4
Political Factors ……………………………………………………………………………………………………. 4
Economic Factors …………………………………………………………………………………………………. 4
Socio-Cultural Factors ………………………………………………………………………………………….. 5
Technological Factors ………………………………………………………………………………………….. 6
Environmental Factors ………………………………………………………………………………………... 7
Legal Factors ……………………………………………………………………………………………………….. 7
Five – Forces Model ……………………………………….……………………………………………………………. 8
Supplier Power ……….………….…………....………………………………………………………………… 8
Buyer Power
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It builds respect, which in turn should build pride in the work and the company” . Workers do not have to worry about external political or governmental factors interfering with their creative work. If any such restrictions are or would be placed on the company for any reason, they would have to conduct their inquiries directly to the owner responsible of the policies and procedures issued at Valve.

Economic Factors Although, the U.S. economy has had its difficulties the last several years, the Valve Corporation has had continuous growth since the company first opened in 1996. Since, Valve is a privately owned company; it is not required to release financial information to the public. Yet, as of March 2012, Valve had an estimated value of $3 billion dollars. Forbes estimated its worth by consulting video game industry insiders, equity analysts, investment bankers, and technology analysts . Valve is the largest video game distributer in the PC gaming market and the introduction of its Steam platform has made it the most popular video download website ever known. In one year alone, research conducted by Forecasting and Analyzing Digital Entertainment (FADE), said Valve’s Steam service accumulated $1 billion dollars in revenues in 2010 . The economic strength of the company is doing exceptionally well. Valve will continue to expand and evolve in their innovative technologies.

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