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
LOUTRICIA ABUYU

REBECA AQUINO

DINEL BOWEN

ANGELITA RIVERA

JOSHUA CLARK

DENIECE MCCOY-STEVENS

CRYSTAL TRAVIS

KRISIN POPIELA

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Presented To The Board of Directors of CanGo

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
Executive summary

SWOT Analysis

Market Analysis

Competitive Analysis

Financial Analysis

Strategic Planning

Conclusion

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
CanGo is currently a company with online shopping location for books, video, and music

CanGo has an opportunity to enter the online gaming market

CanGo has being successful in the past and expects to continue this way in this new venture

CanGo will need to use their strengths, recognizing their weaknesses, taking advantage of all opportunities, and avoiding or disarming all threats in order to succeed

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STRENGTHS

Company offers a popular product
- specialized media goods at an affordable price

Company is particular about what they sell – they only carry merchandise that employees would want to buy themselves

Talented and dedicated staff

Increased sales overseas

WEAKNESSES
No formal strategic plan

No financial analysis

Weak implementation plan for online venture

Lack sufficient facilities to meet increased business demands

Ordering system needs updating

High complaint level of wrong books being delivered

Performance appraisal system lacks objective measures, resulting in server outages and order fulfillment errors

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
OPPORTUNITIES
Develop marketing plan for online gaming system

Projected 500% increase in business for upcoming holiday season

Considering issuing an IPO, which would increase profits and visibility

Increase facility’s processing system. Implement
ASDS system to increase flexibility and capacity

Develop online marking plan based off of research on consumer behavior that highlights self-concept

Engage in market research in Japan to find out why sales have increased so significantly

Research economic benefits of going into new ventures such as digital music, movies, Project
Black Bear, etc.

THREATS
Incorrect or inexperienced personnel for online and other growth ventures

Current order fulfillment system is not able to meet increased work-load

Insufficient amount of IT staff to work on bandwidth, capacity and other projects

Current staff appraisal ratings are inflated. Company will be forced to increase payroll beyond what it can afford if this continues.

Fickle nature of online consumers and ever-changing technology

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
Online Gaming growth rates have helped drive the market and has taken off in Europe and holds a potential for the U.S. “The UK has one of the most established online gaming industries and the Gaming Market is now worth as much as 30 Billion as of 2012. The size of the market is growing and growing and times have changed and the U.S is lining up to Legislate their way into the lucrative market of Online Gaming.

“H2 Gambling Capital, a leading supplier of data and market intelligence on the global gambling industry, puts the size of the global online gaming market at about US$21 billion, hitting US$30 billion by 2012 (Matuszak, 2011)”. This is considering that some of the biggest potential markets such as the U.S., China, Japan, and South Korea, still prohibit many forms of gaming over the Internet.

The Target market is geared toward all ages and background. The average game player is 30 years old and has been playing games for 13 years. The average age of the most frequent game purchaser is 35 years old. Forty-five percent of all game players are women. In fact, women over the age of 18 represent a significantly greater portion of the game-playing population (31 percent) than boys age 17 or younger (19 percent) (Matuszak, 2011).”

The online gaming industry as many consumers living in rural areas, urban areas and major cities across the globe. Their income range from $35,000 a year to $500,000. Most wealthy consumers play for the sport of it. There are social network sites that range from all ages, such as Facebook that gaming companies are closely watching for growth.

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
The online gaming market represents one of the fastest growing segments of the gaming industry and the market prospects could abound in the coming years. Business-to-business expansion: Established gaming sites are looking to license their software and services platforms to establish new revenue streams and gain market presence.

The online gaming market has a very high rate of growth. The market for global interactive gaming will grow at about 42% to U.S. $30 Billion in 2012 (Matuszak, 2010).” Online gaming growth rates have also helped to drive market consolidation, as larger players in the gaming sector have looked to fill out their capabilities or reach into new markets. Online gaming growth will continue worldwide as the potentially richest marketplace remains largely unrealized.

The United States may have the most potential as a lucrative market for online gaming. There is potential in the U.S. for new rounds of merger and acquisition activity, both among traditional gaming companies reaching into virtual markets and existing virtual leaders taking over smaller niche competitors. The industry will remain strong and is growing fast.

There is far to much demand and enough reason for consumers to keep coming back. Online gaming has a loyal customer base, the focus is high on profit sectors, listen to customers and they embrace change. As the popularity of both gaming and online entertainment continues to grow, the online gaming market is without a doubt an attractive area of expansion for software developers, casinos and other land-based gambling operators, related suppliers, and industry newcomers and investors alike.

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CanGo Inc. Strategy to Enter Online Gaming

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In order for a business to remain competitive in their market, they need to be aware of whom their competition is; this is vital to the success of a business. A competitive analysis gives a business the necessary data to remain competitive, providing detailed information about the competition; including strategies and success. Developing your own plan, without taking into account your competition, is potentially setting yourself up for failure.
Eastern Consultants have conducted a competitive analysis on behalf of CanGo to aid in the development of their marketing strategy within the Retail and Online Gaming Industries. This young business has experienced growth by chance over the last few years. The growth has been slow as of late, much slower than their competition. In order to remain competitive in the market, CanGo must understand both the
Retail and Online Gaming industries, as well as knowing their competitors objectives, market desires, and success rates within the market.
The three gaming companies were rated on site quality, user quality, customer service and match quality.
CanGo can learn a wealth of information about its competition from the few key areas that are depicted below. These areas are very important to customers/gamers and will have a large impact on revenue and growth if taken into consideration when implementing its system.

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Paybackgames.com

Paybackgames.com currently holds the number one slot was built by gamers for gamers each and every feature on their site was created and designed based upon feed-back from PBG gamers

There is a moderator present for each and every Daily Match, watching the players to ensure that there is no cheating, as well as that game behavior and communications are appropriate and not disruptive to the match and its players.

Paybackgames.com listens to its user’s feedback, and weighs user suggestions regarding how they can improve the site or the matches that they are providing.

Paybackgames.com has excellent match structure. They provide free matches daily, and the match types allow for individual and team play. They have regularly scheduled tournaments, as well as money and prize matches.
FraggedNation.com

FraggedNation.com is a fairly large competitive gaming website. They have managed to grow their website fairly successfully without sacrificing much of the quality of the site, or the matches.

The site is clean, and the information is easily visible and accessible. Advertisements blend in with the site's format, instead of blasting the player in the face. To a new-comer with no competitive gaming experience, it may be too complicated for them to digest.

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
FraggedNation.com, as these are the users which actually care about game etiquette, and who contribute to quality game play experiences - plus the cheating occurrences are fewer amongst these users.

Turn-around for trouble-tickets is much faster, with it usually occurring within 24-48 hours. However, this may be due to the fact that the user community within the site is so good.
Gamebattles.com

GameBattles.com is the largest online destination for competitive console and PC gaming. Amazing in its quality, but covered with advertisements. The ads are the first thing you see, instead of the actual content of the site, which is a negative.

Most of the users of this website consist of "weekend warriors" or juveniles who are constantly yelling obscenities at you that would make anyone's mother blush with shame.

With a response time of 48 - 72 hours for trouble-tickets, timeliness is not impressive. This may be a result of an attempt to save money on employee costs, which results in a lower quality experience for gamers.

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

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Ratio
Efficiency Ratio:
Receivables
Turnover
Efficiency Ratio:
Inventory Turnover
Financial Leverage
Ratio: Debt/Equity
Ratio
Liquidity Ratio:
Current Ratio
Final number (final result of the detailed calculation)
1.56
Explanation of why ratio is important
Quantifies the company's ability to extend credit and collect on debts
0.28
0.67
5.39
CanGo's State
Analyze how CanGo is going about collecting on their accounts receivable.
Measures how many times the company's inventory is sold, used or replaced during a given time
Proportion of shareholder equity and debt used to fund assets
We would like to see this number higher so we will need to find ways to move inventory faster
Current assets of the company compared to its liabilities.
More debt needs to be financed with equity.
Liquidity Ratio:
Quick Ratio
Liquidity: Working
Capital
Profitability Ratio:
Return on Assets
Profitability Ratio:
Return on Sales
4.53
164,520,000
0.02
0.1097
CanGo seems to be in a good position.
Short term liquidity that measures the company's ability to meet short term obligations with liquid assets.
Higher number = Stronger financial position. Would have to do an industry comparison to review how well CanGo is doing.
Determines if the company has enough short term assets to cover short term debt
Currently CanGo is operating with a good amount of working capital. It is over 50% of their current assets.
Indicates how profitable the company is in relation to its assets or generating revenue We would want this to be higher by likely working to raise net income.
The net income earned from each dollar in sales Raise this number where possible to show we have a high rate of return on sales.

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11%
$5 486 000,00
$50 000 000,00
Net Income Sales Net Profit Margin

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ROA;
2,30%
Net Income;
$5 486 000,00
ROE;
3,90%
Earnings
(after tax);
$5 486 000,00
Assets;
$235 900 000,00
Stockholder
Equity;
$142 000 000,00

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
Strategic Plan - A strategic plan tells a company where they are at now, where they will be going, and how they will get there

Vision Statement Our vision is to continually expand our company. We want to continue to provide customers with an exceptional shopping experience with books and videos, as well as grow our footprint into the world of online gaming.

Mission Statement - Our mission at CanGo is to provide an industry leading service to our customers with a commitment to quality.

Goals



CanGo is striving to increase revenue by 500% by the end of the fiscal year.
Seeking the top rated customer satisfaction feedback
Building trust with our customers to keep them as returning customers

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
Actionable Planning

Understanding the target audience

Know the demographics of that audience

Seek out the trends of where customers are shopping

Building trust with customers

User friendly Website

Competitive and Financial Guidance

Hire development talent

Build a unique distribution network

Optimize monetization

Ethics and Social Conscience

Gamers getting virtual life and real life situations mixed up

Incorporate online games that are educational and storytelling

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






Leadership Development




Team Management
Decision Making
Project Management
Strategic Planning
Be Aware of Emerging Technology

Research and Development

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
Millard, E. (2003). The Future of Online Gaming. E-Commerce
Times, 2.

Matuszak, G. (2010, March 10). Online Gaming: A Gamble or a
Sure Bet. Key Trends, pp. 5,6,10.

Return on equity. (n.d.). Retrieved from http://www.investopedia.com/terms/r/returnonequity.asp

Spiceland, J. David. Intermediate Accounting, 6 th Edition. McGraw-
Hill Learning Solutions, 2011.
<vbk:0077587502#outline(7.6.2.3.1.1)>. Pages 133-138