Cango Week 7 Analysis Paper
Week 7 Analysis Report
Introduction It seems like some of the staff at CanGo is very eager about getting into the online gaming market. So far there hasn’t been that much research done on the market and they don’t know what type of potential, or lack thereof, for CanGo. Liz is taking a good approach by letting everyone speak their mind and not getting sucked into what everyone else wants. She has taken a very objective approach in listening to everyone’s pros and cons.
Analysis
When going into a new venture, there are many facts to gather. The research has to be extensive because this is an investment. One wouldn’t want to invest too much to something that might not come to fruition. The online gaming market can turn out to be very profitable if approach the correct way. In my opinion, it is not something to jump into head first, because there are already many online gaming website up and running. Some offer free family fun and others need a subscription. You also have the gaming console companies getting into the mix by allowing their games to be played online.
Strengths …show more content…
One strength that CanGo has going for them is being eager to get into the online gaming market.
Andrew strongly believes that the venture can by extremely profitable for CanGo. Warren is also supportive of the idea. Like mentioned before, Liz is taking a very objective approach. With employees eager to see the organization grow by their own efforts shows that CanGo chooses people who care about what they do and where they work. The pride in a growing organization can be a strength because those are the people who put their heart and soul into what they
do.
Weaknesses
A weakness CanGo might have in getting into the online gaming market is not having enough personnel to develop and monitor the games. Warren was thinking of doing everything in house and Andrew was thinking in investing in a newly developed company. Either way it will take personnel to develop new games and makes sure there are not problems in keeping the current ones going. This will take a huge effort from the IT department to make sure that there are no system crashes. Online gaming sites tend to have a lot of traffic. It can cost CanGo a lot of money in personnel if not planned correctly.
Opportunities
Online gaming can present many opportunities for CanGo. Online gaming has proven throughout the world that it is very popular. It is an international market and like Andrew mentioned, by gamers playing games from CanGo can invite them to also shop for other items from CanGo. With the combination of books, music, movies, games, and online gaming, CanGo can become a major threat to competitors. Not only will this put CanGo in a very financially profitable position, but it can also open doors to other investment ventures in other markets.
Threats
Although there are many positives to getting into the online gaming market, the negatives can be extremely costly. CanGo currently already has a certain demographic. If they get into online gaming, they will have to, at some point, include the game with adult content. This type of material might cause some clients to disapprove of CanGo and choose to take their business elsewhere. Marketing has to take a very delicate approach in notifying current customers of the changes. If they will end up losing a good portion of their client base, then it might be a good idea for CanGo to set up the subsidiary company like Andrew suggested to Liz. But even then, customers will still find out that the two are associated and it still might have the same effect. Then, there can be the possible legal threats from the content of the games. CanGo will need to find a way to protect themselves against this.
Recommendations
The overall recommendation is for CanGo to hold off on the online gaming venture. For starters, not everyone is on board with the idea. It makes it a smoother venture when everyone is on board. The threats of getting into the market can turn out to be more costly and with the expectation of an increase in revenue, CanGo should focus on growing their current business before venturing off into another one. When well thought out decisions are made, companies can put themselves in positions to venture off into other mark
Introduction It seems like some of the staff at CanGo is very eager about getting into the online gaming market. So far there hasn’t been that much research done on the market and they don’t know what type of potential, or lack thereof, for CanGo. Liz is taking a good approach by letting everyone speak their mind and not getting sucked into what everyone else wants. She has taken a very objective approach in listening to everyone’s pros and cons.
Analysis
When going into a new venture, there are many facts to gather. The research has to be extensive because this is an investment. One wouldn’t want to invest too much to something that might not come to fruition. The online gaming market can turn out to be very profitable if approach the correct way. In my opinion, it is not something to jump into head first, because there are already many online gaming website up and running. Some offer free family fun and others need a subscription. You also have the gaming console companies getting into the mix by allowing their games to be played online.
Strengths …show more content…
One strength that CanGo has going for them is being eager to get into the online gaming market.
Andrew strongly believes that the venture can by extremely profitable for CanGo. Warren is also supportive of the idea. Like mentioned before, Liz is taking a very objective approach. With employees eager to see the organization grow by their own efforts shows that CanGo chooses people who care about what they do and where they work. The pride in a growing organization can be a strength because those are the people who put their heart and soul into what they
do.
Weaknesses
A weakness CanGo might have in getting into the online gaming market is not having enough personnel to develop and monitor the games. Warren was thinking of doing everything in house and Andrew was thinking in investing in a newly developed company. Either way it will take personnel to develop new games and makes sure there are not problems in keeping the current ones going. This will take a huge effort from the IT department to make sure that there are no system crashes. Online gaming sites tend to have a lot of traffic. It can cost CanGo a lot of money in personnel if not planned correctly.
Opportunities
Online gaming can present many opportunities for CanGo. Online gaming has proven throughout the world that it is very popular. It is an international market and like Andrew mentioned, by gamers playing games from CanGo can invite them to also shop for other items from CanGo. With the combination of books, music, movies, games, and online gaming, CanGo can become a major threat to competitors. Not only will this put CanGo in a very financially profitable position, but it can also open doors to other investment ventures in other markets.
Threats
Although there are many positives to getting into the online gaming market, the negatives can be extremely costly. CanGo currently already has a certain demographic. If they get into online gaming, they will have to, at some point, include the game with adult content. This type of material might cause some clients to disapprove of CanGo and choose to take their business elsewhere. Marketing has to take a very delicate approach in notifying current customers of the changes. If they will end up losing a good portion of their client base, then it might be a good idea for CanGo to set up the subsidiary company like Andrew suggested to Liz. But even then, customers will still find out that the two are associated and it still might have the same effect. Then, there can be the possible legal threats from the content of the games. CanGo will need to find a way to protect themselves against this.
Recommendations
The overall recommendation is for CanGo to hold off on the online gaming venture. For starters, not everyone is on board with the idea. It makes it a smoother venture when everyone is on board. The threats of getting into the market can turn out to be more costly and with the expectation of an increase in revenue, CanGo should focus on growing their current business before venturing off into another one. When well thought out decisions are made, companies can put themselves in positions to venture off into other mark