Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability.

Wizards of the Coast

Strengths

Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive

Advantages Sustainability

Weaknesses

One hit wonder Cult? Clash of cultures Distribution Roller coaster

Opportunities

Retail stores Acquisitions Tournaments Online Macro-environment

– Political & Legal– Technological– Demographic– Macroeconomic

Threats

Online Changing

Demographics Competition

Industry Analysis

Potential Competitors Supplier Power Buyer Power Substitutes Rivalry Complementors

Potential Competitors

Brand Loyalty Absolute Cost

Advantages Economies of Scale Switching Costs Government Regulations Entry Barriers Harry Potter

Supplier Power

Few Substitutes Not important customer High switching costs Threat of integration

Buyer Power

Few, Large Buyers Buyers purchase in

bulk Supplier depends on

buyer Low switching Buyer can purchase

from many Threat of integration

Substitutes?

Rivalry

Games Work Shop– Competitive Structure– Demand Conditions– Exit Barriers

On line games Another Strategic Groups Industry Life Cycle

– Embryonic, Growth, Shakeout, Mature, Declining

– Network Economics

Complementors

Books Movies Action Figures Retail Outlets

Leadership

Peter Adkison Richard Garfield

Marketing 4 p

Target Market Price Product Promotion Distribution

Target Market

“player is a person with a good education, disposable income, and an affinity for computers.” “most popular with males in their teens or twenties.”

American Demographics; Jul/Aug2002, Vol. 24 Issue 7, pS4, 1p

To understand Gen Y's spending priorities, think personal appearance and fun. Collectively, this group spends 70 percent more than average on alcoholic beverages, 38 percent more than average on tobacco and 25 percent more than average on food away from home. When they're at home, the critical appliance is not a stove or a refrigerator but a home entertainment system. This group spends 31 percent more than average on televisions, radio and sound equipment.

Price

$8.95 Starter set $2.95 booster pack $300-$1000

Product

Card Game Portable 1 hit Face to Face Award winning

Place/Distribution

Small game/hobby shop

Target Retail stores

Promotion

Co-op Publicity POS

Situational Assessment

Product/Services Financial

The Impact of Quality on Profits

The Impact of Efficiency, Quality, Innovation, and Customer Responsiveness on Unit Costs and Prices

The Value Chain

Distinctive Competencies, Resources, and Capabilities The roots of competitive advantage:

Strategic Resources and Capabilities

Tangible– Land– Buildings– Plant – Equipment

Intangible– Brand names– Reputation– Patents– Technological or

marketing know-how

The Durability of Competitive Advantage

Barriers to imitation– Speed of imitation by competitors in

reducing advantage– Imitation by acquiring similar resources– Imitation of capabilities (more difficult)

Limits on competitors– Prior strategic commitments– Absorptive capacity for change

Industry dynamism– The rapid innovation

shortens product life cycles.

Why Do Companies Fail?

What went wrong?– Inertia– Prior strategic commitments– The Icarus paradox

Avoiding failure and sustaining competitive advantage:

– Focus on the building blocks of competitive advantage.

– Institute continuous improvement and learning.

– Track best industrial practice and use benchmarking.

– Overcome inertia.

Alternatives

Extending the Brand

Mass Market Developing Tour

naments Opening Game

Centers

More Alternatives

Product Development Acquisitions Global Expansion IPO Purchase Candidate

Recommendations?

Update

Current Situation