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