BUSINESS OPPORTUNITY PLAN

Business Opportunity Plan

Business Opportunity Plan

INTRODUCTION

Games Workshop, founded in 1975, is a well renowned producer of PC games. The study here intends to propose them with a new line of production, which is of consoles console (Playstation, xBox, Nintendo) games. The gradual increase in leisure time has pulled more people to gaming, which has certainly increased their demand. The gaming industry is facing vigorous development especially in the past few years. (Stutley, 2002)

The purpose of this term paper is to present the finding of research on the proposal of a business opportunity plan to Games Workshop. The plan will cover the marketing as well as financial aspects of study. (Rice, 2002)

Market Analysis

The DFC intelligence report indicates that sales are on the rise for video game market. The gaming market has grown considerably and any new opportunities are there for the grab. Games Workshop should also focus on improving its profits by introducing consoles (Playstation, xBox and Nintendo) in its product lines. (Elliot & Elliot, 2003)

Marketing Mix

Marketing the product well is the most essential part of generating revenues. Games Workshop has already had a great marketing background and should continue with it to focus on the new products. (Stutley, 2002)

Product

The product itself is something very demanding in the market as gaming on Playstation, xBox and Nintendo is on the rise. Games Workshop has to maintain a good quality to ensure that its product is successful in the market.

Price

Pricing a product is the second most important step. Games Workshop will place an average price tag on the product to ensure that potential customers do purchase it. (Damodaran, 2002)

Placement

Games Workshop is proposed to make a separate shelf for the product to catch attention of customers. It would be placing its product in various shops and places that are visited by potential customers often. (Stutley, 2002)

Promotion

A marketing CD will be created which would then be shown to various dealers for the purpose of better understanding and awareness. Furthermore, customers would be targeted using electronic as well as paper media. (Damodaran, 2002)

Promotion and Advertising

The promotional strategy would focus on customers that are already attracted towards gaming. Associating the various games with its products would be the core promotional strategy of Games Workshop. Promotional and advertising activities will play vital role in gathering customers for Games Workshop. (Damodaran, 2002)

Various mediums including TV, radio, magazines, newspaper and the internet would be used for promoting the product. The Chart 1 (next page) portrays the increasing expected trends, for the new product, in customers based on the assumption that the promotional strategy will be executed effectively. (Atrill & McLaney, 2002)

Chart 1

2011

2012

2013

(000)

(000)

(000)

College Students

725

1,013

1,366

Job going People

275

287

332

High School Students

525

626

780

Other

275

344

398

Total

1,800

2,269

2,876

Financial Analysis

The financial plan has to cover a wide variety of areas before a proper financially managed report can be made. The various aspects of financial planning, which the Games Workshop must evaluate are incorporated in the report here onwards. (Stutley, 2002)

Assumptions

The financial feasibility for the incorporation of the Games Workshop is build upon the following assumptions:

Economy grows constantly without any ...