When plans go wrong


Introduction
            The purpose of this discussion is to research an organization that had a good plan that did not come to fruition because the market changed, and many innovative competitors entered the market. The organization that the researcher selected was Atari. According to Shankar et al. (1998), “Although pioneers outsell late movers in many markets, in some cases innovative late entry has produced some remarkably successful brands that outsell pioneers.”. The researcher will discuss what happens when plans go wrong, why organizations have unsuccessful plans and how an organization can work to avoid the impacts of an unsuccessful plan.
When plans go wrong why organizations have unsuccessful plans and impact example
            At one time the Atari gaming company was the largest video game maker in the world. So, when they filed bankruptcy it was a shock and a heartbreaking event for the video game industry. The first system that Atari released was an instant success and they were unable to replicate its success years and many consoles later (Gallagher & Park, 2002). In the 1990s throughout the early 2000s, Atari faced fierce competition and they failed as an innovator when they made the decision to continue making cartridge-based games and the gaming industry was moving towards cd-based systems (Lendino, 2018). Many organizations have failed or unsuccessful plans because they adopt scenario planning and not strategic planning (Godet, 2000). Atari adopted scenario planning and not strategic planning because they were focused on the results and they did not have a good understanding of the ever-evolving video gaming environment.
The relevance of the example, the impacts and how to avoid the impacts
            The fall of Atari is a relevant example of a company that fails to adopt a sociotechnical plan. Atari focused more on their technology and company than they did their workers and customers. They had the wrong view of the video gaming industry and considered gaming to be an individual process and not an experience that could be shared. Many of the programmers of their games were not given the proper credit for the work that was gone and many of them left and formed their own independent ventures. Video game console companies learned a valuable lesson from what happened to Atari and are now working harder to avoid issues by valuing their employees more and by adopting sociotechnical plans and by encouraging the collaboration between their people and their technology.
Forces
Force #1: The CD revolution (Technological force)
            At one time Atari was the number 1 video gaming company and they were passed by Sony, Nintendo, and Microsoft. How do you think this happened? First, Atari thought they were invulnerable because they had most of the market share. Theirs misunderstand of how the gaming market was heading and their inability to make changes to their hardware platform allowed the others to out-innovate them. The competition moved to the CD game format from being a cartridge-based system.
Force #2: Pricing
              Atari continued to offer their games in the cartridge format for years and by the time they developed a CD-based system, it was too late. Cartridges cost a lot more to create that CD’s and therefore the cost of the games were higher. So. Pricing was another one of the driving forces behind the development of CD and then digital download systems.
           
Summary
            An organization that does not have a good plan can find themselves in a difficult spot when the market changes and more innovative competitors entered the market. Atari was such a company and at one time they were the largest video game maker in the world. Atari faced fierce competition and they failed as an innovator when they made the decision to continue making cartridge-based games and not cd-based systems. They had the wrong view of the video gaming industry and considered gaming to be an individual process and not an experience that could be shared. Theirs misunderstand of how the gaming market was heading and their inability to make changes to their hardware platform allowed the others to out-innovate them. Pricing was another one of the driving forces that influenced innovation. If a company fails to change with the market, they might soon find themselves out of business.   



References
Gallagher, S., & Park, S. H. (2002). Innovation and competition in standard-based industries: a
historical analysis of the US home video game market. IEEE transactions on engineering management, 49(1), 67-82.
Godet, M. (2000). The art of scenarios and strategic planning: tools and pitfalls. Technological
forecasting and social change, 65(1), 3-22.
Lendino, J. (2018). Adventure: The Atari 2600 at the Dawn of Console Gaming. Ziff Davis.
Shankar, V., Carpenter, G. S., & Krishnamurthi, L. (1998). Late mover advantage: How
            innovative late entrants outsell pioneers. Journal of Marketing research, 35(1), 54-70.

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