CanGo Market Analysis - Essay Example

CanGo Market Analysis CanGo Market Analysis For those who have been involved in video/computer gaming market for a various years, they probably feel that they pretty understand the market; they have a good understanding of who the customers are, what they want, and their buying patterns. If you come up with this hard-won information in the online gaming sector, however, it will be somehow helpful but utterly horribly wrong. Of course, online players purchase video and computer games, but the market of online gaming should be treated separately from video and computer market (Amazon, 2009). The main thing here is that these two sectors have different objectives. Home players want appropriate individual experience while online gamers want opportunities of good time to cooperate and compete with other players and socializing. Based on the current access of internet statistics and patterns of buying games, researched by analyst groups, the number of online game customers in the United States is approximately 100 million. On the broader global market, this may extend to approximately 400 million customers. The content of the present paper is a market analysis of CanGo Company Inc. The purpose of this market research/analysis is to determine how the company can increase its sales volume before the end of this year. This analysis presents CanGo’s market strengths and opportunities. CanGo is a company that was founded in a couple of years ago and the goal of this market analysis paper is to get the company in the right channel. The largest opportunity of the company at present is to get a stable online game and run (Bloomberg, 2009). CanGo has established the right platform of increasing its sales volume and attracting a large number of customers. This is the fastest way of getting the name of the company in the market. Online gaming is currently touching millions of potential clients internationally. The size of the online gaming industry is currently experiencing a very strong growth. Most of the Digital Software Associations estimate that the total of online gaming sites’ users is currently increasing from 10 to 15 percent every month. In CanGo Company Inc. The estimates are that the customers of online gaming will adjust from $ 2 billion in 2013 to approximately five billion dollars by the end of this year. According to the Internet Moms. Com, E-Commerce is currently becoming more common. The reason is that internet shopping and hectic lifestyle with E-Commerce is highly convenient and time saving. There are predictions that the e - commerce market will double in size by the end of the next four years. In the year 2008, the sales of international commerce industry amounted to $204 billion (Knight, 2008). The US consumers accounted for 3.8% ($32 billion) being ranked at the eighth position (Barnes & Noble Booksellers, 2009). In America, eCommerce occupies 3% of the total sales revenues. The online gaming sector, which is coupled with videos and DVD, is generally referred to as online entertainment. Online gaming contributes $49 billion of all online sales revenues, which is equivalent to 24% of international commerce sales. The international commerce industry has a total of 900 million internet users who are shopping using the internet. Out of these nine hundred shoppers, 8% are US 70 million internet shoppers. 63% of these online shoppers are females who outnumber the males’ shoppers at a ratio of 3:2. According to internet Moms.com, those who mostly do online shopping are women and those who have children. In addition, this source indicates that a profit of an organization such as CanGo can increase if its services and products are electronically received (Newman, 2007). This is because the organization can save money and time when there are ship item and inventory costs. The source also recommends that an organization can increase its profits by ensuring that it offers unique services and goods. A comparison of CanGo Company and its competitors indicates that, they only occupy one percent (1%) of the total ecommerce market size (Amazon, 2009). With the competitors occupying such a small market share portion, CanGo Company can be considered to be in part of a small category of Internet Company, which at present occupies 83% share of the ecommerce market consisting of millions of online businesses. This analysis suggests that, CanGo Company should create a strategic plan that will make it gain competitive advantage thus increasing its market share. Its major competitors, eBay, Barnes, Noble, and Amazon.com at present occupy a relatively large portion of online market share. The potential of the company lies within its abilities to improve its efficiency through implementation of ASRS. This is because the implementation of ASRS is currently providing the company a significant rate of ROI (Return on Investment). Other opportunities for the company in the markets of Japanese and one of its excellent moves will be partnering with Japanese companies in order to continue with its growth. Due to this rapid growth, the company has a potential of continuing in the online gaming sector (Blackwell, 2009). The online gaming sector is an economic sector that deals with developing, marketing, and selling computer and video games. Since the gaming industry is currently growing at a faster rate in the last few years, and is still expected to grow widely in the future, the company has a potential of further growth and development (eBay Annual Report, 2008). The entrance of the company in this sector will enable it to distribute its services and products to a wide range of customers in the global market. In addition, most of public investors have interest with CanGo Company Inc. Due to the simultaneous recognition of the company’s CEO Barrett as the most successful business manager of the year. Lastly, in some years to come, proper funds allocation and market penetration will be CanGo’s focus. After three to four years, CanGo Company Inc. will have experienced a relative growth in the current online marketing and gaming industry. The company will also be able to enter in the m-commerce (mobile commerce) market of cell phones, palm pilots, and PDA’s (Dasgupta & Hahn, 2007). The acquisition will highly assist the company to dominate a large market share as well as establishing new technology departments, which will help its research and integrate the advanced software needed to stay ahead of its competitors. References Amazon. (2009). Media Kit: Company Facts. Retrieved June 14, 2014, from: http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-factSheet Barnes & Noble Booksellers. (2009). For Investors. Retrieved June 14, 2014, from Barnes & Noble Inc: http://www.barnesandnobleinc.com/for_investors/for_investors.html? cds2Pid=20619&linkid=1352322 Blackwell. (2009). Put your Budget to Good Use...Before You Spend a Penny of It. Retrieved on June 14, 2014, from Blackwell Baker & Taylor: http://www.blackwell.com/orders_and_purchasing/automatic_deposit_accounts Bloomberg. (2009). AMZN: US Amazon.com Inc. Retrieved June 14, 2014, from Bloomberg: http://www.bloomberg.com/apps/quote?ticker=AMZN%3AUS eBay Annual Report. (2008). eBay Annual Report 2008. Retrieved June 14, 2014, from http://files.shareholder.com/downloads/ebay/784094560x0x281367/1b773a7c-8c14- 45b8-915a-1716ca37dda0/eBay_2008AR.pdf Knight, K. (2008, February 5). Forrester: online shopping growth to slow. Retrieved June 14, 2014, from BizReport: http://www.bizreport.com/2008/02/forrester_online_shopping_growth_to_slow.html Newman, O. (2007). Online business sourcebook including online, CD-ROM and web products. Munchen: K.G. Saur. Dasgupta, P., & Hahn, F. (2007). Economic analysis of markets and games: Essays in honor of Frank Hahn. Cambridge, Mass. u.a: MIT Press. Read More