Blue Orb Case

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Blue Orb: A Company in Transition

This report is consistent with my signed Academic Integrity Form on file with the instructor.

Team 6

February 17, 2015
Critical Issues

After an analysis of the current situation, Blue Orb Inc. needs to address the following:
• Transition Path from a research-orientated organization into retail oriented business
• Strategic business decision regarding marketing plan for SwitchBlade Pro o Inability to convert free subscribers to paid subscribers o Whether to accept The FightWare Proposal as a part of marketing campaign o Whether to do in-house promotional SwitchBlade Pro gaming competition as a part of marketing campaign

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Decision criteria

Options that Blue Orb Inc. will need to implement include:
• Establishing a customer base of 10,000 subscribers in the next two years
• Launching a new social media campaign by mid-September
Options analysis

1) Reconstruction of promotional activities

The first option is to reconstruct the promotional activities for Blue Orb. Based on the effectiveness ratio, online ads, in-game ads, gaming magazines, gaming expos and YouTube videos provide for ratios that are below one. In addition, all four of these promotional types offer a negative return on investment and result in a waste of resources and capital (see Exhibit 3: ROI on Promotional Activities). By removing these four ineffective activities, Blue Orb’s promotional activities will be reduced to $34,450 and they will be able to achieve a higher return on investments with the remaining activities (see Exhibit 4: Revised ROI on Promotional Activites). Blue Orb hopes to convert 20% of the return on investment into subscribed customers.

2) FightWare to run the Video Game Competition
The second option is to allow FightWare to run and monitor the video game competition which will feature the SwitchBlade Pro software over the Internet. The cost required for this option is $25,000 excluding all promotional costs. Since Blue Orb does not have $25,000, they will need to ask one of their investors. At the competition, FightWare will provide 32 national known players who will play games

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