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Wizards of the Coast

Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

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Page 1: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Wizards of the Coast

Page 2: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Strengths

Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive

Advantages Sustainability

Page 3: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Weaknesses

One hit wonder Cult? Clash of cultures Distribution Roller coaster

Page 4: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Opportunities

Retail stores Acquisitions Tournaments Online Macro-environment

– Political & Legal– Technological– Demographic– Macroeconomic

Page 5: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Threats

Online Changing

Demographics Competition

Page 6: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Industry Analysis

Potential Competitors Supplier Power Buyer Power Substitutes Rivalry Complementors

Page 7: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Potential Competitors

Brand Loyalty Absolute Cost

Advantages Economies of Scale Switching Costs Government Regulations Entry Barriers Harry Potter

Page 8: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Supplier Power

Few Substitutes Not important customer High switching costs Threat of integration

Page 9: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Buyer Power

Few, Large Buyers Buyers purchase in

bulk Supplier depends on

buyer Low switching Buyer can purchase

from many Threat of integration

Page 10: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Substitutes?

Page 11: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Rivalry

Games Work Shop– Competitive Structure– Demand Conditions– Exit Barriers

On line games Another Strategic Groups Industry Life Cycle

– Embryonic, Growth, Shakeout, Mature, Declining

– Network Economics

Page 12: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Complementors

Books Movies Action Figures Retail Outlets

Page 13: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Leadership

Peter Adkison Richard Garfield

Page 14: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Marketing 4 p

Target Market Price Product Promotion Distribution

Page 15: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Target Market

“player is a person with a good education, disposable income, and an affinity for computers.” “most popular with males in their teens or twenties.”

Page 16: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability
Page 17: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability
Page 18: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

American Demographics; Jul/Aug2002, Vol. 24 Issue 7, pS4, 1p

To understand Gen Y's spending priorities, think personal appearance and fun. Collectively, this group spends 70 percent more than average on alcoholic beverages, 38 percent more than average on tobacco and 25 percent more than average on food away from home. When they're at home, the critical appliance is not a stove or a refrigerator but a home entertainment system. This group spends 31 percent more than average on televisions, radio and sound equipment.

Page 19: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Price

$8.95 Starter set $2.95 booster pack $300-$1000

Page 20: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Product

Card Game Portable 1 hit Face to Face Award winning

Page 21: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Place/Distribution

Small game/hobby shop

Target Retail stores

Page 22: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Promotion

Co-op Publicity POS

Page 23: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Situational Assessment

Product/Services Financial

Page 24: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

The Impact of Quality on Profits

Page 25: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

The Impact of Efficiency, Quality, Innovation, and Customer Responsiveness on Unit Costs and Prices

Page 26: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

The Value Chain

Page 27: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Distinctive Competencies, Resources, and Capabilities The roots of competitive advantage:

Page 28: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Strategic Resources and Capabilities

Tangible– Land– Buildings– Plant – Equipment

Intangible– Brand names– Reputation– Patents– Technological or

marketing know-how

Page 29: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

The Durability of Competitive Advantage

Barriers to imitation– Speed of imitation by competitors in

reducing advantage– Imitation by acquiring similar resources– Imitation of capabilities (more difficult)

Limits on competitors– Prior strategic commitments– Absorptive capacity for change

Industry dynamism– The rapid innovation

shortens product life cycles.

Page 30: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Why Do Companies Fail?

What went wrong?– Inertia– Prior strategic commitments– The Icarus paradox

Avoiding failure and sustaining competitive advantage:

– Focus on the building blocks of competitive advantage.

– Institute continuous improvement and learning.

– Track best industrial practice and use benchmarking.

– Overcome inertia.

Page 31: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Alternatives

Extending the Brand

Mass Market Developing Tour

naments Opening Game

Centers

Page 32: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

More Alternatives

Product Development Acquisitions Global Expansion IPO Purchase Candidate

Page 33: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Recommendations?

Page 34: Wizards of the Coast. Strengths Magic the gathering Brand Loyalty Unique Product Explosive Growth Employee Loyalty Competitive Advantages Sustainability

Update

Current Situation