The Eastern Consultants: Team A

1. The Eastern Consultants: Team A • LOUTRICIA ABUYU • REBECA AQUINO • DINEL BOWEN • ANGELITA RIVERA • JOSHUA CLARK • DENIECE MCCOY-STEVENS • CRYSTAL TRAVIS • KRISIN POPIELA

2. Final Report Presented To The Board of Directors of CanGo

3. AGENDA • Executive summary • SWOT Analysis • Market Analysis • Competitive Analysis • Financial Analysis • Strategic Planning • Conclusion

4. EXECUTIVE SUMMARY • 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 threatsin order to succeed

5. SWOT ANALYSIS STRENGTHS WEAKNESSES • 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 • 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

6. SWOT ANALYSIS OPPORTUNITIES THREATS • 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. • 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

7. MARKET ANALYSISSIZE OF THE MARKET AND DEMOGRAPHICS • 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.

8. MARKET ANALYSISGROWTH AND POTENTIAL • 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.

9. Competitive Analysis CanGo Inc. Strategy to Enter Online Gaming

10. Competitive Analysis 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.

11. 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.

12. 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.

13. FINANCIAL ANALYSISReturn on Equity – How well is CanGo using investor dollarsEfficiency Ratio – How effective is CanGo on Collecting Credit 

14. Financial Analysis

15. Financial Analysis – Net Income

16. Financial Analysis – Net Income

17. Strategic Planning Recommendations • 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

18. Strategic Planning Recommendations • 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

19. CONCLUSION • Principle Issues of Concern • Leadership (Decision Making Skills) • Lack of Company Direction • Recommendations For Improvement • Management Skills Training • Leadership Development • Team Management • Decision Making • Project Management • Strategic Planning • Be Aware of Emerging Technology • Research and Development

20. REFERENCES • 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, 6th Edition. McGraw- Hill Learning Solutions, 2011. <vbk:0077587502#outline(7.6.2.3.1.1)>. Pages 133-138