Competitive Analysis

738 Words Jun 2nd, 2012 3 Pages
In growing the company, CanGo prepares to expand into online gaming. To assist in this endeavor, we present By Design’s findings concerning the competitive environment of online gaming. To begin with, there are many impressive competitors in the online gaming industry. The following tables show the top 25 gaming companies in 2010 along with the fastest growing ones (Van Kooten, 2010). Despite this fierce competition, there are also plentiful opportunities for entry into the online game market with forecasted trends showing huge growth. In 2007, online games generated $6.6 billion. They are expected to increase to $14.4 billion in 2012. The top 10 fast growth companies indicate that online gaming is a goldmine (Caron, 2009). …show more content…
Virtual goods are virtual items that players purchase to reach new levels or limited edition items (Interview With CEO of Playdom, 2009). In 2009, Playdom had $50 million in profits and has about 42 million players per month. (Barnes & Miller, 2010). Aside from the point of access for online games played, it is important to understand the market segments for online gamers. A study by Park Associates as cited by David Edery, CEO of Spry Fox, outlines a diversification of gamers into six categories: 1. Power gamers who are 11% of the total gamer market but represent 30% of current spending. 2. Social gamers account for 13% of the market. 3. Leisure gamers hold 14% of the market and spend an average of 58 hours per month playing casual titles. This group prefers challenging games and show high interest in new gaming services . 4. Dormant gamers are 26% of the market. They enjoy gaming, but spend very little time playing due to life’s obligations. 5. Incidental gamers are 12% of the market, with an average of 20 hours a month game time. They usually play out of boredom. 6: Occasional gamers comprise 24% of the market and play puzzle, word, and board games (Edery, 2006). It is our conclusion that CanGo with its established brand can effectively compete in this competitive field by focusing on the segmentation of gamers within a niche in the online gaming industry, particularly in
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