Market Formation Approach for the IT Convergence Business Development : Case Application - Serious Game

Abstract

The term ‘convergence’ has changed from ‘convergence between technologies’ to ‘convergence between industries’. Now convergence is recognized as a new business creation opportunity for corporations and organizations’ sustainable growth in an increasingly competitive and complex environment. The main focus in convergence businesses is "market formation" rather than "market segmentation" by strategic alliances and business area expansion. For convergence business, directors must consider the expectation level of the potential customers’ essential needs and possibility of purchase. STP(Segmentation-Targeting-Positioning), the most representative customer analysis method, focuses on extracting the market shortfalls in defined markets and customer characteristics. STP has advantages in the definition on niche market but it is limited in explaining unpredictable convergence businesses which never existed in the past. For the purpose of explaining convergence businesses, we suggest the PTS(Proposal-Targeting-Setting) approach for the process of generating new business opportunities. PTS is a new approach for newly designed services by convergence in technology which lets businesses, industries and etc, select the major markets among feasible ones and dominating the created target market.