Board Game Company In Singapore Marketing Essay

Board Game Company In Singapore Marketing Essay This business plan is my year 3 third term final project, in fact, has a certain commercial value. It is not allowed to reprint or copy without my consent. Once discover this action, Ill be notified police to dispose. Number of words: 11,485 Student: Mo Xiaoran (0909005722) Date: 15th OCT 2012 Acknowledgement This project could not accomplish without my friends support and encourage, very thankful. Especial thanks my lecturer Miss. Canny Chow, thanks for her support my business idea, and continue to give suggestion for this project. I wish to thank for my parents support and encourage, thank for their educate me and make me success. Thank You Executive Summary This business plan is described how to start-up a board game company in Singapore. This business project is aim at realize that formal procedures of set up a business in Singapore. Which shows at this project divide into seven part, conception of board game company businesses; company product and services description; industry market and competition analysis; market strategy; funding request; pro-forma sale scale and financial plan. Goblin Games LLP focus on provide a good board gaming environment for players, providing a perfect game experience for customers. Let people realize the benefit of board game, and eliminate prejudice of board game culture. According research and analysis, board game industry is an underdevelopment industry in Singapore, thus it is an opportunity for business, this business plan explained how grasp the opportunity and how to use it make a large profit. In this business plan, Goblin Games LLP provides a comparative reality forecast of sales and investment. As a business plan with S$200,000 investment and can gain profit and second year, it is a worthy business plan. This article is a good business guide for entrepreneur. Introduction A board game is a game that involves counters or pieces moved or placed on a pre-marked surface or board, according to a set of rules. Many time people have some wrong ideas at the board game, some people think board game is a modern product and will have a negative influence on a certain extent, especially the eldership. It is different with people think, board game originated in earlier time. Board games are very popular around Egypt, Greece and Roman, who have been playing them for thousands of years. In 3000 BC, Egyptians used mud gaming boards to play the games. The discovery of the oldest board games has been recorded in the history.. Certainly, many different nationalities play board games in different way, such as Tabula in Roman Empire, Vikings introduced board game named in 400 AD, and at the follow, in 1100, the popular game Draughts was invented in the France, AD. In 1935, the most popular board game was introduced in United States, called Monopoly, this is most of people know the first board game. In the last few years, board games have gained popularity across the globe. Irrespective of other entertainment means, such as TV and video games, they continue to be popular. Description of Goblin Games LLP 2.1 Goblin Games LLPs Establish As we know, Singapore as a country which has the most floating population (in unit area) and the largest population density. It becomes the center of the international tourism in Southeast Asia. It seems that for various reasons, Singapore has a large potential market of entertainment industry (such as board game industry). On the other hand, comparing with the other Southeast Asia countries, Singapore is considered as a business friendly country. Singapore government provides a lot of preferential policy (taxation etc.) for emerging small enterprise, especially the emerging cultural industries likes board game industry. The rudimentary potential market with government support, Singapore becomes the best choice of Goblin Games LLPs enterprise development. 2.2 Current Status Board game industrys characters (emerging industry, not mass production and operation activities, do not need large-scale raise funds) decided Goblin Games is a new limited liability partnership (LLP) in Singapore market. As a LLP company, GG will own many advantages, for example: Separate Legal Identity, Limited personal liability, perpetual succession and Ease of compliance. All of these will help GGs operation more stable. That the reason why GG register to become LLP. Registration of a new LLP must be submitted online use Biz File, ACRAs electronic filing and information retrieval system. The registration processes are as follow (ACRA): 1) Using the identification number and Singapore pass to login to Biz File and submit your online transaction. 2) Engage the services of a professional firm or a service bureau can help you to submit application online 2.3 Registered Name: Goblin Games limited liability partnership. 2.4 Registered Address: According our fact finding, purchase a company land is unpractical, rent a business place is more suitable. Weighting various factors, Toa Payoh is the best choice of our company. About the reasons, the first, Toa Payoh is a resident activity center which different with Orchard, it is more inclined to populated area. Other industry may prefer to local at commercial center. GG focus on provide a leisure service place and convenient customer consumption. (Registered address: Toa Payoh RMT station, Singapore). 2.5 Vision Statement Lynch, R (2009) explained that the vision statement is a challenging and imaginative picture of the future role and objective of an organization, significantly going beyond its current environment and competitive position. Create entertainment, create life Goblin Games LLP devotes itself to create an unqualified and cleanly game environment, providing a high quality customer services. GG will fight for bring joy for customers. Games are our business and pleasure. 2.6 Mission Statement Generally, the mission statement as a statement should include succinct representation which the organization purpose. The mission of an organization outline the broad directions that it should and will follow and briefly summaries the reasoning and values that lie behind it (Lynch, R. 2009) About Goblin Games LLP, the mission statement is as follow: Goblin Games LLP wants to become a world-class board game company with professional and innovative staff. GG focus on providing the best service and board game environment for Singapore players, for our staff, GG wants to set up a professional management team with the love of board game. GG hopes people are able to gain something that positive and useful in the game. 2.7 Objective of Short/Long Run For long term objective, Goblin Games LLP devotes itself to create a better game environment, for peoples happiness. GGs short term objective is aim to realize the long term objective. We strive to recruit professional and innovative staff, provide a high quality customer services and advertise the true board game culture. The main goals of GG company for the first three years of operation are as follows: First rent a large space about covers an area of 500 square meters nearby Toa Payoh MRT Station, nearby center region Singapore. Require the space is divided into fluctuation two parts. The first floor is designed as board game center, provided for customer play board games and pastime. The second floor will become games workroom, it is designed for our staff work, such as design and transformation board games etc. Recruiting some professional who love board games and have work ethic. Provide professional service for customer to attract more board game player, certainly, our surpassing clients expectation. Development and design one or two board games and receive plays favors in center region even whole Singapore. Absorb 150 members in the first operating year, 400 in the following year and absorb more in the third year. GGs board games appear in other board game bar at second operating year, make the payback period within three years. Become one of the best board game service company with the best reputation in Singapore. Planning expansion board game center business in southern part of Singapore. 2.8 Management Team Jon R. Katzenbach explain that in the best companies, a so-called top team seldom functions as a real team, (Business Leader). Set up a management team has a large necessity, it is central in the concept of leader effectiveness. The management team is the entire work group as a collective, not an aggregate of individuals, limited without in the area of freedom allowed by its position in the organizational hierarchy. Nowadays, the management team is used in the enterprise, no matter the enterprises scale. A smart management team will make some great reward and maximum value. In concrete terms, Thomas,G (2012) expounded that build a management team has many benefits are as follow: The members of an organization will be more identified with the goals of the organization and consider about its success if they join in making decisions about those goals and how to achieve them. Set up a management team gives its members a feeling of greater control over their lives; it frees them from the fear of the leaders arbitrary use of power. When group members join in solving the groups problems, they learn a great deal about the technical complexities of whatever the groups work is; they learn with each other, as well as from the leader. Developing a management team is the best kind of improve staffs abilities. 2.9 Company Director: MR. Mo Xiaoran as the GGs director. ACRA is the only authority of singapore company registered. ACRA rule that the company director must reached the age of 18. Director must be Singapore citizen or Singapore permanent resident or employment pass (EP) holder when the director and shareholder as the same person. The number of director, retirement and reappointment method should be write in to company regulation. Director s responsibilities include make the company decision and negotiations of external activities. 2.10 Company Secretary: MISS. Fish Leong. After the establishment of the company 6 months, company must appoint a legal secretary, her responsibilities include: Timely submit the company act specified in the report and form to commercial note. Take good care of the companys name and meeting record. Where necessary, sign for official contract and the board of director resolution. Ensure that company documents properly covered the company seal. 2.11 Current activities brief summary Basing on the corporations vision and mission, absorb a large number of professional talents, produce a comfortable working environment for staffs, creat more board game for game player. GG not only meet the needs of existing players, but also vigorously promote board game culture to develop more board game players. Striving to let players to experience the game pleasant sensation at the same time, taste to board games excitement and fun, divergent thinking and benefit. Indusrty Analysis 3.1 Board Game Industry All the game company and entertaining services company are belong to entertainment industry. GGs major products are board games and supporting services (Board game center). We perfer GG belong to board game industry. European and American board game industry started early, nowaday, there are some strong industry members, such as Fantasy Flight Games (FFG), Z-Man Games and Hasbro, they are efforts of new entrants to gain a market foothold in Europe and America. In China, there are also have a number of rising board game companies, such Yoka Games and QianZhi, they are promoting the development of Chinese board game industry, but they are not mature enough,most of products are base on Chinese culture. That make the products get into international market will be difficult. In Southeast Asia, the board game industry has just strated, it is an undeveloped market, it is beneficial to GG. 3.2 Porter Five Forces Porters Five Forces model The Porters Five Forces model is defined by David (2009). This model is a widely used approach for developing strategies in many industries. The intensity of competition among firms varies widely across industries. Porter explains there are five forces that impact industry attractiveness and long-term industry profitability. These five forces are: Rivalry among competitors Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Threat of substitute products or services Table 1: GGs Porters Five Forces (Source: Create for this enterprise project) 3.2.1 Rivalry among competitors (Strong) Johnson (2010) explained the strength increases as the number of competitors increases or they become equal in size. Demand for the industrys products declines or industry growth slows. Fixed costs or barriers to leaving the industry are high. The intensity of rivalry between competitors in an industry will depend on: 1) The structure of competition. 2) The structure of industry cost. 3) Degree of differentiation. 4) Switching costs. 5) Strategic objectives. 6) Exit barriers. In Singapore board game industry, the case of Goblin games there is less competition, but in the whole game industry, GG face a strong competition, it depends on the board game facing the impact from video games and computer games. Such as the leader of computer games-EA, Blizzard. Some of people prefer to stay at home and play computer games. There are many traditional electronic game centers in Singaporean shopping center. Some kids prefer to play games which can gain prize. As a new industry, it is obvious that board game industry has a clear market leader. It is an opportunity of GG, but it also let some well-known board game companies strategic objectives aim at Asian board game market. When competitors are pursuing aggressive growth strategies, rivalry is more intense. Facing the strong competition, GG must be implementing more effective strategy. 3.2.2Threat of new entrants (Ordinary) It is a factor that indicates the likelihood of entrants coming into an industry and creating competition for existing companies, new entrant to industry will raise the level of competition. Coulter M (2010) describe that the threats of new entrants depend on the barriers of entry. This risk is lower if there are significant barriers to entering the industry, such as regulation, patents or capital requirements. Threat of new entrants is higher if there is an excessive profit to be earned or entrance barriers are lower. As a matter of fact, set up a board game company is different with banking industry, with no need for too much money like bank, however a good board game company has to allocate a set of equipment. In board game industry, originality is base of work, lots of second class board game company has a few new element when they develop games. Blindly imitation cannot gain the customer groups. Nowadays, the society environments make a lots of people become scholasticism. More and more people do not want to innovate. So if recruit the game designer who has the innovation is the key factor to success. As a company, it is difficult to switch the capital. That means once invest capital into board game industry, it is difficult to switch to another industry, vice versa. According the industry analysis, it easy to find that board game new entrants will face a strong competition in the international market of global scope, and competition will be weaker in Singapore. However the new entrants will face the impact from video games industry at the same time. According the Porter Five Forces model, high production-profitability threshold requirement will decrease the threats of new entrant. The most of board game company founders are the hobby board game enthusiast, the companies are difficult to get government financing, once cannot make profit in short term run or has a low profitability ratio, it will be difficult to business. So in board game industry has a relatively high production-profitability threshold requirement. In board game industry, the main products are all kinds of similar games, Arthur A, John E and A J Strickland (2007) described an important barrier of entry is products differentiated or well-known brand names. In Singapore there are not lots of well-known board game corporation. An overall consideration and rational estimation of GGs threat of new entrants are ordinary. 3.2.3 Bargaining power In a setting where both parties have more or less equal bargaining power, the potential to negotiate a resolution that is acceptable to both parties is usually much easier to accomplish. If the balance of power not be equal, one party will have a decided advantage over the other, and be in a much better position to dictate terms. As a result, the party with less bargaining power often has to settle for less than what he or she desires in order to receive any benefit at all from the transaction. 3.2.4 Bargaining power of buyers (Ordinary) The buyers affect an industry through their ability, such as force prices down, bargain for higher quality or more services, or even play competitors against each other, described by Wheelen and Hunger (2010). In the trading market, business profit is low when the bargaining power of buyers is great, and buyer will spend more on the contrary. There are some key factors which affect the bargaining power of buyers. One is the proportion of consumers and supplier (market purchase quantity), the second is the products standard whether has little differentiation between competing products in the industry, sometime the standard is reflected by product price and quality. The third impact factor is whether the industry is key supplying group for buyers. For example, in the case that there are relatively few suppliers of goods or services, and each supplier provides good or services at price are similar to those by his or her competitors. Buyers power is weak if the industrys products are necessaries. Board game industry faces different area will get different result by buyers power. For example, in somewhere that board game into peoples life and the board game industry are strong. That means customer has more choice when face different products. They will choose to buy the cheaper one with better services, so the corporations which have no market and popularity need to reduce the products price and provide better service. In this case, the buyers bargaining power is strong. As we know, Singapores board game industry is a fledging industry. Most board game customers are foreign holiday tourists. According to the characteristics of the most visitors, they dont care about the games expenditure if these games are good enough to attract them. In a general way, people are difficult to impact the products price in an emerging industry with a few competitors, but the most of older generation do not accept game culture. GG must do some promotion through underselling, provide professional guide the new customers and so on. That means GGs board game industry in Singapore will service for customers with a certain extent bargaining power. 3.2.5 Bargaining power of suppliers (Ordinary) Coulter, M (2010) explain that industrys suppliers have bargaining power, they can raise prices or reduce the number of services provided or the quality of products that industry purchases. Except produce board game, GG also operating the game center as a place where gamer play games. It is the main source of income. Most of board game center rely heavily on game company as supplier, the supplier has a lots of stabilized buyer and master the high bargaining power. For Goblin Games, its supplier is not so important in the future. At the present stage, GGs board game center will buy in some famous games for satisfy customers require, but the key lies in promoting own new games. Because of GG in a fledging period, it will face a certain pressure from suppliers bargaining power. 3.2.6 Threats of substitute products or services (Ordinary) The best of way to evaluate this threat is to see whether there are other industries that can satisfy the consumer need that our industry is satisfying (Coulter. M, 2010). The substitute products are few, the threats will be low. It impacts an industry through price competition. Products from one business can be replaced byproducts from another. Most of board game companies product are produce and issue all kinds of board game, the products in board game industry are similar, the only distinguish method is game category, such as simulation game (SLG), simulation game (SIM) and role playing game (RPG) and so on. But in Singapore people it is difficult to get some famous board game which produced by board game company. The traditional games expenditure is higher than board game, it means that end users have high costs in switching to substitutes, in a certain extent, it reduce the threat. There are lots of substitutes in board game industry, but on account of GG board games special nature, Goblin games avoided the strong threats of substitute products, and the threat is able to further reduce through some special operation. 3.3 SWOT analysis SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a method for analysis organizations business, resource and environment (Riley, J 2009). The SWOT analysis is the foundation for developing organizations strategies and tactics and that then help the organizations design business operating plan. The key point about SWOT is that: Strengths and weaknesses Are internal to the business. Relate to the present situation. Opportunities and threats Are external to the business. Relate to changes in the environment which will impact the business. Table 2: GGs SWOT analysis (Source: created for this business plan) 3.3.1 Strengths Goblin Games LLP as a new board game company locate in Singapores residential area. Many people want to play board game to pastime and relax, but do not want to leave far away from home (go to shopping center region). GG board game center is their best choice. GG provide a various services. For our board game products, we offer the online order, and we have professional staff response for customers question on official forum. In GG board game center, we provide all kinds of board games and drinks, snacks (include free and charge). When you feel uncertain on one games rule and game method, we have professional staff help grasp the game as soon as possible, help for a perfect game experience with customers. Have a good management team, will gain a good beginning. Goblin Games pay attention to build and train management team. It most important that management team is fill smart people with clear thinkers, understand what needs to be done, and skills of delivering good results. 3.3.2 Weaknesses Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Because of GG is a new company, it very difficult to in a market place. Even though, Southeast Asia is underdevelopment market, because of this the well-known board game company will not give up the opportunity. Meanwhile, the well-known brands are more popular in peoples mind. In Singapore, there are several old board game bars. People may prefer to expend in here. People are always habit old things and difficult to accept new one. Apple Inc. is a great company, its products drive some new things appear, such as electronic board game. That true has impact for GG board game centers business, but I believe that people will be more like multiplayer games. 3.3.3 Opportunities Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Obviously, Singapore is a large potential market for board game industry. In this high-speed operation country, many people may be tired of mechanical life. They do not want to face computer, they are care about the health and interpersonal relationship, GG board game center grasp the opportunity and provide a good place for them. Singapore is a business friendly country, and about new culture industry, the government support emerging industry development (taxation, company registry). 3.3.4 Threats Threats arise when conditions in external environment jeopardize the reliability and profitability of the organizations business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. Seem from external environment, the threat not only from the same industry, but also come from all kinds of public place entertainment and holiday resort, such as internet bar, cafà © bar and video arcade. Because of the industry category, the barriers of entry are not high, there may arise some competitors will form a strong competition in initial stage. Once that it easy to cause the board game industry become low side industry, it is against GGs profit. Products Services Considering the scale of GGs business, GG will not provide much products at present. About the GGs means of profit divide into two parts, one is issue and sell the board games, we have professional board game designers provide the most original design, then the art directors and product department will show the design to board game players. The other part is operation the board game center, in the board game center, we offer a unlimited place with complete equipment and all kinds of board game for customer, we have professional game instructor to help you to understand the games rule as soon as possible. It a good place to relax yourself, make friends and study. Certainlly, we will purchase many board games from other well-know board game companies at present there are many well-know board game companies, such as Yoka Games (Chinese), Fantasy Flight Game (Roseville, MN, America), Z-Man Games (New York, America), etc. 4.1 Description of Products and Services In this part, we will introduce three board games which offered for customers by Goblin Games LLP Board Game center. SAN GUO SHA (Killers Of The Three Kingdoms) This board game include RPG, reasoning, team, hand management factors. Its the most popular board game in China which created by yoka Game. San Guo Sha blend in history and culture of Chinese the three kingdoms and the characteristics of western killer games. According the players indentity with in a game card form. In the game, the player will act a military commander of three kingdoms, combined with the identity of this round, through round and round of strategy and action, gain the final victory with companions. It is a successful board game which assemble the entertaining, competive, interactive, collaborative as one, and focus on cultural connotations. Carcassonne This is a Germen style board game. Carcassonne is suitable for two to five player play together. Carcassonne was designed by Klaus who won in 2001 the Spiel des Jahres prize. This game will take exercise for peoples managing strategy. Every time in game will emerge different strategy and alliance relation The werewolves of Millers Hollow In a brief, werewolves of Millers Hollow is a KillGame with more factors. It has been nominated for the 2003 Spiel des Jahres award. It is suitable for 8 to 18 players play together. The game mainly composed by the werewolf special villagers and ordinary villagers, the werewolfs goal is to devour all the villagers, the goal of the villagers is to find the hidden werewolf villagers and destroy them through a lot testimony which provide by special villagers with special features for the game. This game will exercise peoples observation and analysis ability. About the source of additional revenue, in GGs board game center we provide all kinds of drinks and snacks for customers. Certainly, GG will self-produce some board games to supply for market. This is GGs second part business, look away from long term profit, it has more market value than board game center. Because of the professional board game developers has in no, result in the technology is immature, we are difficult to issue own board game product at present. 4.2 The Charging Standard of Goblin Games Board Game Center In general, the GGs product and service pricing is base on our labor force and equipment cost. According the most of board game bar or board game centers price and make appropriate adjustment. GG try to echo customers consumption concept, at the same time consider own compitive requirement. Set up the basci charging standard are as follow: Table 3: Board Game Center charging standard (*Note: where ph means per hour, all the GG board game center basic charge base on 1 hour. The vip card means membership card which can provide a discount of basic charge in board game center. GGs membership provides ten percent discount, and once the customers number of consumption to 10 times, the customer will get a luckly chance to gain any one board game product.) Market Competition There are a lot of kinds of methods for analysis market, usually it may take two distinct forms. The first is investors look at the market and decide for make investment decisions, whether it is going down or up. The other is used for marketers, they through analysis the target market of their customer and make decision for improve sales and profitability. Board Game Market Outlook Board game industry as a emerging industry, it bring up a market which different with traditional industry. The market are focus on peoples spiritual life rather than substance. Seen from the outside, the board game market coverage is may not big, and somebody think the board game only has young people customer groups. In fact, board game is suitable of each age group. Nowadays, most of the middle-ageds cricle is small, increasingly, people are lack of communicate skills exercise. In board game, player will meet many stranger with same hobby. Nowadays, peoples quality of life has improve. They will be willing to spend for rich leisure life rathan than stay with computer. Board game is a good idea for them. PESTLE PESTEL Model PESTEL is used to find out the current status and position of an organization or individual in relation to external environment and current role. PESTEL can be used as a basis for future planning and strategic management. PESTEL is one analysis mode of external environment. It covers: Political factor Economic factor Social factor Technological factor Legal factor Environment factor Identifying PESTLE influences is very important in a business plan, it help the manager realize the companys external environment, and adopt some strategy on time. 5.2