Business plan research task

 

Strategic Planning for a Games Companies

My objective is to understand and communicate the significance of developing a sophisticated business plan and establish a defined market strategy.

Task:

1.       Explain the fundamentals of business planning and then research and analyse successful and unsuccessful games companies. (1)(2)

2.       Analyse how their business plans contributed to their success or failure. (3)

3.       Where possible explore successful games companies and analyse how their business plans contributed to their success. (4)

 

1.       Investigate the fundamental elements of a business plan?

There are 7 fundamental elements to a business plan;

·         Executive Summary

·         Company Description

·         Market Analysis

·         Organization and Management

·         Products or Services

·         Marketing and Sales Strategy

·         Financial Projections

Executive Summary : An executive summary is a precise overview of the entire document. It serves as the first section and provides a view into the key points of the plan. The main components typically found in an executive summary are, Mission (State the company’s mission statement and briefly describe its purpose), Company History and Management (Provide basic details about the company’s location, duration of work, and key management personnel), Products or Services (Explain what the company offers and how it addresses consumer needs), Market (Summarize the market size and potential for growth), Competitive Advantages (Highlight strengths that differentiate the company from competitors), Financial Projections (Estimate sales projections for the initial years in business) and Startup Financing Requirements (Mention any funding needs).

Company Description : A company description is the part that outlines what the business does and why it exists. It focuses on your products and services, and what sets you apart from other similar companies. Also, it includes your company’s mission and vision. In this section you should introduce who you are and the company, explain how your business operates and where it will operate, the services/products you offer and what sets them apart from other similar companies, when you plan to start all of this and what’s on your business timeline of operations and finally why you are starting this specific business.

Market Analysis : A market analysis is one of the most crucial parts of a business plan as it provides inside view of the market your product/service is trying to reach and operate. This section involves researching and analysing different aspects of your targeted market/competitors/industry trends to understand the dynamics of that area.  

Organisation and Management : This section provides crucial insights into how your business will be structured and who will be responsible for its success. There is 3 crucial roles, Organisation, Management and Business Structures. Organisation- The organization aspect outlines the structure of your business and the people involved. If you have a partnership or a multi-member limited liability company, this section becomes essential. For a sole ownership or a home-based business where you’re the sole operator, this section may be less detailed. Consider including any outsourced workers or virtual assistants who play significant roles in your business. You can represent the organizational hierarchy using a chart format.
Management- The management component focuses on the responsibilities of different managers and their contributions to the company. Begin by providing a summary of your management team: Mention the team’s size, composition, and a brief overview of each member’s experience. Specify roles such as: President or CEO, CFO, Director of Marketing Any other key roles relevant to your business.
Business structure- Common business structures include Sole ownership, Partnerships, LLCs, Corporations, Tailor your organization and management section based on your specific business type.

Products or Services :  The products and services section of a business plan is crucial for outlining what your business offers. It goes beyond merely listing your products or services; it provides necessary details that investors and stakeholders need to understand before giving funding or collaborating with you. You should clearly describe your products and services that your business will provide and highlight the valuable benefits of what you offer.

Marketing and Sales Strategy : This is your plan for reaching, engaging and converting target prospects into profitable customers. An example of media from different sections working in harmony is Yugioh Chronicles as it uses the card game to promote the new anime and vice versa  with new cards being shown. In this section you would present the ways you would be using to get your product out there on sites like eBay or amazon ect. But you could also say about creating your own  website to market your product on there. Your sales strategies are what your strategy for selling your product is such as, selling on Amazon which is a worldwide site for everyone to access and see your product or Specific advertising through youtubers, streamers or on billboards. Your sales strategy is very important as you need to be able to get your product out there and get sales going, as without this your company would crash very quickly due to not enough money to keep the company alive.

Financial Projections : In this section you would write down cost to make products/services and the amount of the product/services you need then the sell price of your products/services. By using existing and estimated financial data to forecast your business’s future income and expenses, with this data you can test different scenarios to see how changes to one aspect of your finances might affect your profitability such as increasing or decreasing costs.

 

 

 

 

 

 

2.       Identify key components specific to the gaming industry?

There are Nine key components specific to the gaming industry;

·         Game Concept and Development

·         Technology and Platforms

·         Monetization Strategy

·         Market Trends and Audience Analysis

·         Competitive Analysis

·         Intellectual Property Considerations

·         Community and Social Engagement

·         User Acquisition and Retention

·         Game Lifecycle and Updates

 

Game Concept and Development: Game Concept and Development in the gaming industry involves thinking up ideas for new games and then making those ideas into reality. It's like dreaming up a story or adventure and then bringing it to life in a digital world that players can explore and enjoy. This process includes brainstorming concepts, designing characters and worlds, coding the game mechanics, creating art and music, and testing everything to make sure it works smoothly. It's a creative and collaborative effort that requires teamwork, problem-solving, and attention to detail to create fun and engaging experiences for players to enjoy.

Technology and Platforms: Technology and Platforms in the gaming industry are all about the tools and places where games happen. Think of technology as the gadgets and software that make games possible, like computers, consoles, and smartphones. Platforms are the places where you find and play games, like app stores for mobile games, or services like Steam for PC games. It's basically the stuff and the spots where gaming magic comes to life.

Monetization Strategies: Monetization strategies in the gaming industry are how game creators make money from their games. This can involve players paying a one-time fee to buy the game outright or purchasing virtual items and upgrades within the game. Subscription services offer access to a library of games for a recurring fee, while advertising generates revenue through displaying ads during gameplay. Downloadable content (DLC), season passes, and special passes provide additional content and rewards for players who are willing to pay extra. Cosmetic items, like character skins and emotes, allow players to personalize their experience, and loot boxes offer randomized virtual items for purchase. These strategies vary widely and are often tailored to suit the game's target audience and business model, ultimately supporting the ongoing development and maintenance of the game.

Market Trends and Audience analysis: Market trends and audience analysis in the gaming industry involve understanding what people like to play and how they like to play it. This means looking at data and paying attention to what games are popular, what platforms people prefer to play on, and what features they enjoy the most. Game companies use this information to decide what kinds of games to make and how to design them to appeal to players. For example, if lots of people are playing multiplayer games on mobile phones, a company might decide to make more mobile multiplayer games. By keeping an eye on market trends and understanding their audience, game developers can create games that people love to play.

 

 

 

 

 

Competitive Analysis: Competitive analysis in the gaming industry is like checking out what other players are doing in a game to see how you can do better. It involves looking at other games that are like yours and seeing what makes them successful or popular. This might include things like what features they have, how they're priced, or what kind of audience they attract. By understanding what's already out there, game developers can figure out how to make their own games stand out and appeal to players in a unique way. It's like studying your opponents in a game to learn their strategies and find ways to win.

Intellectual Property Considerations: Intellectual property considerations in the gaming industry are about protecting the creative ideas and work that go into making a game. This includes things like characters, stories, artwork, music, and even the code that makes the game run. Game developers need to think about how to keep their creations safe from being copied or used without permission by others. This might involve things like copyrighting their games, trademarking logos or brand names, and using contracts to make sure everyone who works on the game knows who owns what. It's like making sure nobody steals your favorite toy or book so that you get to keep all the credit and rewards for your hard work.

User Acquisition and Retention: User acquisition and retention in the gaming industry is all about getting people to play your game and keeping them interested so they keep coming back. Think of it like inviting friends over to play your favorite game and making sure they have such a great time that they want to come back again and again. User acquisition involves strategies to attract new players, such as advertising, promotions, or word-of-mouth referrals, while retention focuses on keeping existing players engaged through regular updates, new content, rewards, and community events. By finding ways to bring in new players and keep the ones you already have happy, game developers can build a strong and loyal player base for their games.

Game Lifecycle and Updates: The game lifecycle and updates in the gaming industry are like taking care of a plant to make sure it keeps growing and stays healthy. When a game is first released, it's like planting a seed—it's new and exciting, but it needs attention to grow. Updates are like watering and fertilizing the plant, adding new features, fixing bugs, and keeping things fresh so players stay interested. As time goes on, the game evolves through different stages, from initial release to ongoing updates and possibly even expansions or sequels. Just like a plant needs care to thrive, games need regular updates and attention to stay fun and enjoyable for players over time.