Gamedog is a small start-up company that develops video


GameDog is a small start-up company that develops video games. An independent marketing research firm - using a combination of demographic and psychographic variables - has broken the overall video game market into three major segments: these have been defined as Segment A (multiple player games), Segment B (single player games), and Segment C (educational games). Because GameDog lacks the financial resources to compete in all three segments, management must decide which of the three it will pursue as its target market. Accordingly, GameDog's top management has asked you to explain which criteria it should take into consideration to assess the attractiveness (i.e. profitability) of each segment. In doing so, explain the relevance of each criteria. (Please note that you are not being asked to recommend a particular segment. Instead, the criteria you describe should be applicable in any similar situation.)

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Operation Management: Gamedog is a small start-up company that develops video
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