1.

0 Introduction
As a newly founded games company Strand Game Group LTD is developing a new board game product to launch soon in the U.K market. On the first part of this report an analysis of the external environment in the form of a PEST analysis is presented. The external analysis was primarily focused on the U.K market in which Strand Game Group LTD will mainly operate for the present time. Parts of the PEST analysis e.g. Technological, present information and opportunities on how Strand Game Group LTD can explore in future editions of the developing products and future products. Additionally a brief competitor analysis is presented as well. The second part of this report is focused on a brief description of the development of the new board game. Through this part some backbone information of the initial planning of the board game is drawn.

2.0 Analysis of the External environment 2.1PEST analysis
2.1.1 Political

Safety measures - The political aspect that affects the industry is mainly the safety measures. Safety measures are depended on the age group of the intended user and the material used for the production of the game. The main users within the industry are children. While considering the safety regulations it comes to materials used to make the game, playing conditions and selection of themes. The national authority has a major role in ensuring the safety of the games. The games are vital tool for the development of the children. The market for the games is very high; the responsibility for the manufactures is high in ensuring the safety and also the theme of the game. The latest standards help in improving the rules for marketing the games produced or imported. The authority also supports the export of quality products to the third world countries. (European Commission, 2009) Government policy for innovation The Government has many policies to support enterprises producing innovation in all sectors. The relaxations for the industries in the stage of growth are high.

According to the reports.1. This may have a positive impact on the sales of the new board game. it could benefit sectors perceived to offer better value such as games and puzzles. (European Commission. The government also helps to maintain a good demand for European products by restricting the external games at times. However according to Mintel (2008) although tougher economic conditions are likely to mean lower volume sales. with average prices across the economy actually falling in 2005 and 2008 and the rise in household disposable income levels translated to a high level of consumer spending in the economy.According to Datamonitor (2009) the market value of the Toys and Games industry has grown by 3.2 Economical Economic Recession Although it was expected for the UK market to steadily come out of recession as sources from BBC news and The Guardian are reporting the UK is still in recession. The spending on the industry has been steadily rising since 2004 according to Keynote (2009).7% to reach a value of 3. Consumers are more careful on what they spent their money on. Board games and puzzles represent the 11. but other factors must be taken in consideration like the credit crunch. According to BBC news (2009) The UK economy unexpectedly contracted by 0. Furthermore parents do not want their children to feel deprived in any way if they can avoid it so this industry is believed to be one of the last market sectors to feel tightening of budgets. . Furthermore it is forecasted that the market will have a growth of 20. 2009) 2. Market economic situation . UK is the best market to do business because of the low tax. Furthermore as Guardian reports the latest crisis in Dubai has led shares in the FTSE 100 index to drop by 170 points which led in losing 44 billion pounds of their value. meaning the country is still in recession.K inflation rates . Board games in advantage . The tax rate is 28% and is the lowest among the G7 countries and it is 21% for smaller companies.The credit crunch had a big impact on the economy and the consumers confidence.6% by 2013.4% between July and September.3 billion pounds.10% of the whole industry. U.According to Keynote (2009) Inflation has been low since 2004. according to official figures.

1. However children are the ones that drive the success and the failure across much of the market as according to the report four in ten parents cannot say no to their children 2. camaraderie and competition. The demographic segmentation information reveals that there is a fall of the under 14 s however there is a rise in child birth (Mintel. As long as the product can be incorporated into the occasions as an ideal gift for a child or family. Licensed products . Toys and games manufacturers are therefore increasingly targeting adults . Family games (Couples or with children) and Guest s games (Target. The board games allow parents to bond with the children and also to keep them away from the isolation created by the TV. The adult children and the childlike adults According to Euromonitor International (2008) In the UK.com. 37% of the population aged between 16 and 49 describe themselves as active gamers on a console. Sampling and consistent communication maintained between customers and companies helps discover newer themes and ideas (Garon. 2009).According to Mintel (2008) adults are the primary purchasers within the industry. Diwali. with respect to board games. Chanukah or Eid gifts are prevalent all over the world.Social norms like giving away Christmas. The board games are just a catalyst. the manufacturer stands to gain maximum profit (Garon. There is a strong presence of purchasing of board games in families with children in all the age groups (0-15). 2008). hand-held or PC.According to Euromonitor International (2008) there is an appeal to the consumers for licensed products. is that they are classified into Party games. The trend.3 Sociological Segmentation The main buyers of board games during 2008 are ABC1 s with families.The health hazards that the computer and TV generate opens up a dimension of opportunity as far as the board game are concerned. Board Games as an alternative to Video Games . 2000). Market Trends Within the Toys and Games industry one of the strongest trends are board games and puzzles. with the reasons being social interaction. Licensing toys and games has become extremely profitable for key players. who readily agree to pay large sums in order to acquire the licences to manufacture or sell toys portraying well-known or popular characters. 2008). Special occasions generate sales . In the UK market Christmas is still the biggest event which accounts of half of the industry s total sales. 2008). for people to come together to use them (Buzzle.

Most of the games have instructions and manuals describing how to use or how to play the game.Internet can be used in many games for references. Furthermore a lot of board games now include parts of the game into DVD s e. money counting in Monopoly). . Internet can be used to register users of the games and they can win prizes or free board game accessories.4 Technological CD/DVD Simulation . many traditional toys now have increased electronic content. which increases their appeal to more sophisticated children who are increasingly interested in mobile phones.g. Educational or general knowledge games may interest users to find more details about a particular topic over the internet. An example of this technology is Monopoly: Electronic Banking Edition which uses an electronic system similar to credit cards and credit card readers instead of the traditional money of the older version. As it was stated video games are an emerging trend that imposes a threat for traditional board games and puzzles. By introducing electronic video versions of the board games.A lot of classical games are going launching electronic versions say for example Monopoly.as customers for their games. Electronic version . Use of Electronic devices . manufacturers can take advantage of this emerging technology. Scene it! This includes questions on DVD. Use of Internet . there are possibilities to create a CD or DVD and simulate a real environment of how to play the game.g. 2. etc. in order to expand their customer base. On the other hand. computers and fashion.Board games can have electronic instruments to play the game. ideas and so on. including women. Furthermore according to Mintel (2008) the Internet can open further channels of distribution and provide more opportunities for smaller board game manufacturing companies. According to Jacques (2009) with the help of technology. According to Jacques (2009) although such elements can add excitement to the game it can also have some disadvantages as some important educational elements of a board game can decrease (e.1.

Scrabble for Mattel). The video game market can operate on expense of the Games and Puzzles market. However Hasbro Inc had declining margins during 2008 which may have an impact to Hasbro Uk Ltd as well. The main strength for both companies is the many years of operations and the many traditional strong brands under their belt (e. Furthermore in 2009 Hasbro formed an agreement with Marvel to provide games of their characters. One of these products has some similarities with the game that Strand Game Group LTD is launching. Hasbro UK Ltd/Mattel UK Ltd Both this companies are the market leaders of the industry both worldwide and in the UK. .2. In the following part of this report the main competitors of Strand Game Group LTD are briefly analysed concerning their strengths and weaknesses.K but there are a lot of smaller companies within the market as well.g. Parker bros Monopoly for Hasbro. All the large companies that have worldwide presence are strong in the U. Lego Although Lego is primarily in the production of toys with the very popular Lego bricks in August 2009 they have introduced their game production unit with the introduction of 8 new board games that are based around their bricks. As it was analysed before licensed games are very popular.2 Competitor analysis The market in general is very fragmented. Sony/Microsoft/Nintendo These companies can be considered as indirect competitors to Strand Game Group LTD as they are the market leaders for video games hardware and software.

Available at: <URL http://www. Toys and Games report UK . 2009.buzzle. Available at: <URL https://www.com/swa520772-How-Advances-In-Technology-AreChanging-The-Classic-Board-Game. Available at: <URL http://news.stm > [accessed on 10th November 2009] Buzzle.asp > [accessed on 10th November 2009] Euromonitor International.reports. Available at: <URL https://www. 2000. Available at: <URL http://academic.gcglaw. Available at: <URL http://searchwarp.com/resources/business/social_relevance.com/editorials/11-21-2000-1529. 2008.htm> [accessed on 19th November 2009] Gallagher. Available at: <URL http://ec.search> [accessed on 10th November 2009] Mintel.bbc.htm> [accessed on 19th November 2009] Other readings Datamonitor Inc (2009).co. Toys and Games report UK 2009 [online].uk/market-intelligence/view/product/2272/toys-%26games?highlight=toys+and+games&utm_source=kn.2008 [online]. Toys safety EU 2009 [online].html> [accessed on 15th November 2009] Key Note. Toys and Games report UK 2009 [online].com.aspx> [accessed on 10th November 2009] European Commision. Toys and Games in the United Kingdom. 2009.com/sinatra/oxygen_academic/search_results/show&/display/id=280200/di splay/id=429767/display/id=280200> [accessed on 14th November 2009] Searchwarp. 2009. Callahan and Gatrell PLC.co. 2009. Board Games and guide to Old Board Games USA 2000 Available at: <URL http://www.com/Portal/DocumentView.keynote.uk/1/hi/business/8321970.euromonitor.mintel.europa. 2009. How advances in Technology are changing the classic board game USA 2009 [online]. Record recession for UK economy UK 2009 [online]. Social Relevance The Role of Marketing and Advertising USA 2008 [online].eu/enterprise/sectors/toys/index_en. Datamonitor UK .portal.References Webpage BBC News. 2009.

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