Assignment: SWOT Analysis of the Business Idea

Subject: Entrepreneurship
Submitted by:
Harris Daniel
Asifa Haider
Inayah Arbab
Khalid Mehmood
Afan Qayum
Maliha
Submitted to Ma’am Romy Sajjad.
Date: 10th November 2021.
 BUSINESS IDEA

ENTREPRENEURIAL GAMES:
Our idea is to develop such games which can build Entrepreneurial skills from a
very young age. This game will equip them with the basic skill set of problem-
solving, enhance their critical thinking, and expand their knowledge regarding
investments, savings, and financial management from a very young age.
OBJECTIVE:
The objective of this particular game would be to nourish the entrepreneurial
mindsets and grant students a chance through which they can learn through fun
games.
 NEED
ASSES
REQUIRMENTS

MENT
IT skills
Creative knowledge
Finance
Technical skills
Designing, Artistic skills
Experience of Gaming
Team work
Problem solving regarding pc, coding and
Software
Marketing
Exposure to industry
Consumer preferences
Communication Skills
Management Skills
Bachelor’s degree in software engineering or
computer science.
Experience with full-cycle game design.
Proficient with programming languages,
including C++, Java, and C
Experience building libraries and APIs.
Ability to solve complex software and coding
issues.
Build and MVP the market wants.
Idea Registration/Business Location
  Low finances
 Weak customer Base
 No Proper Training
 No initial knowledge
of Developing games
 Lack of experienced
game designers
 Lack of computer
programmers
 No Audio Developers
 No audio assets

W
 GOVT Seed Funding.
 IM durshal.
 Business incubation center.
 National incubation center.
 Enrollment in the Business  KP Economic Zone
institute  Govt Kamyab jawan Program
 Average technical skills  Crowd Funding (Seed Out).
 IT Access is easily available in  Angel Investors (Pakistan Angel
university and from friends Investment Network).
 Imitative idea  E-gaming officially recognized

S OW
 Strong Marketing Skills By IT BOARD Pakistan.
 Having Gaming experience SWOT  E-Pak (Govt support in E-
 Problems solving capabilities ANALYSIS Gaming).
 Artists in the group
 Free to play model (Ads
 Caricature making Experience
included).
Access to graphic designers
 Covid-19 (Time spent on
gaming increased, Specially
online games)
 Parents wants to make their

T 


children time valuable.
SMEDA Provides technical
help.
Multiplayer gaming.
 3D Graphics.
 Strong Competition.
 Unstable Govt which Poses
negative Image of industry.
 Fluctuating Economy.
 Inflation makes the Game
development
 and the means to play game
on Expensive
 Screentime limitations.
 Attraction to other social
media app
 New Games built with
advance technology.
 Server crash.
 Hackers.
 PEST
Political Factors
ANALY
SIS
Gaming in Pakistan has captured the government in terms of legalities and internal sights. The
federal government here in Pakistan is looking at the possibilities of the gaming industry being a
catalyst for driving economic growth taking a massive interest in the industry, organizing
national gaming Championships
Pakistan plans entry into the $90 bn gaming industry that can open many opportunities, with 20
percent annual growth. Unfortunately, the highly unstable political conditions in Pakistan can
affect the industry to a great extent
Kp Government is launching projects in IT sector to improve economy through technology.
Moreover KPITB is considering allocating a budget for promotion of gaming industry that would
help train children.
KP government has invited gaming industry related companies from other cities of Pakistan to
establish their setup in KP
Zia Ullah Bangash Said “Provincial government would provide full support and Assistance to
anyone who want to setup gaming company in KP.

Opportunity:
 Govt is supporting Creative gaming as E-Gaming has been officially Recognized by the
IT Minister (Fawad Chaudhry) in Pakistan. An initiate has already been taken by govt by
organizing an E-gaming Tournament of 1 Million rupees.

Threats:
 The high unstable political environment in Pakistan can highly affect the e-gaming As
Sometimes games gets banned in Pakistan for no reason posing a very negative picture of
Pakistan in the rest of the world (PUBG Case) and Pakistan does not have a very good
image in E-gaming industry to attract potential investors.

Economic Factor:
The gaming industry is a $90 billion industry, and is the world’s biggest industry. Game
development, game marketing and game distribution are the three main parts of the industry. The
largest part of the industry is the development part, with over 95% of all game developers
employed in the United States. The industry employs over 3 million people, while the number of
workers in the industry worldwide is estimated to be about 8.5 million.
𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧:
Inflation has had a significant impact on the gaming industry over the past several years. Rising
inflation has caused disposable income to shrink, which in turn has caused consumers to reduce
their spending on discretionary items such as gaming. Inflation also causes net income to shrink,
which in turn reduces the amount of discretionary income that consumers have to spend on
gaming. In addition, rising inflation causes the interest rate on loans to increase, which causes the
cost of doing business in the gaming industry to increase as well.

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞:
The net income of the gaming industry is directly affected by the overall level of inflation. As,
there is a direct relationship between inflation and total income of the industry (that is, the total
income of the industry increases when inflation increases). The industry’s total income is driven
by the number of consumers, the total amount of money spent on games, and the consumer price
index. These economic indicators are all directly influenced by inflation, and thus the industry’s
total income is also directly influenced by inflation.
Personal net income effects on the gaming industry can be positive or negative. As the economy
improves, the total amount of money that people make in salary and investment increases. This
increases the amount of money that people are willing to spend on games, thus increasing the
demand for games. This also increases the overall size of the market for games.

𝑫𝒊𝒔𝒄𝒓𝒆𝒕𝒊𝒐𝒏𝒂𝒓𝒚 𝑰𝒏𝒄𝒐𝒎𝒆:
Discretionary Income effects on the gaming industry are very similar to the effects on the
economy as a whole. As personal net income increases, people are willing to spend more on
other goods and services. This increases the demand for games and for entertainment in general.
As the economy increases, the overall size of the gaming industry increases.

𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐫𝐚𝐭𝐞:
The impact of interest rates on the gaming industry is indirect. Interest rates determine the
amount of money that will be available to consumers and businesses for spending during a given
period. Higher interest rates mean that people must save more before they can spend what they
earn. Thus, higher interest rates reduce the demand for games.
With the increase of interest rate cost of borrowing become costly so investment become low
that is also a negative relation

𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐆𝐫𝐨𝐰𝐭𝐡:
Positive Impact: As the economy increases, more people are employed and the amount of money
consumers spend increases. The result is a generally positive effect for the gaming industry.
Negative Impact: If the economy decreases, then the demand for games decreases and the
gaming industry suffers. A decrease in the demand for games can be due to many factors, such as
fewer jobs, and less money to spend on games.

𝐔𝐧𝐞𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐫𝐚𝐭𝐞:
The unemployment rate directly affects the gaming industry. Unemployment is an issue that
impacts the gaming industry. This is because unemployed individuals do not spend any money
and do not contribute to the economy. This means that there are fewer people who are willing to
buy games, which leads to less demand for games. Unemployment impacts the gaming industry
in several ways. First, it effects the wages of workers. This effect is direct: if workers are getting
paid less, consumers will probably be willing to pay less for games and other goods and services.
Second, unemployment affects the general economy, which decrease the overall size of the
market for games means that there are fewer people who are willing to produce games, which
leads to less supply of games.

Opportunity:
 The Pakistani government has started its first program (E-PAK) to assist and encourage
young gamers in breaking into the worth billions of dollars gaming Industry
 Pakistan's information and broadcasting ministry has signed an agreement with
Singapore's Garena and Bigo businesses to help build an esports ecosystem in the country
of 220 million people, many of whom are young.

Threats:
 Inflation is affecting the gaming industry badly. Due to an increase in wage rate game
development will become costly.
 Due to the devaluation of rupees, most of the gaming systems and equipment like
PlayStation, Xbox, Graphic cards, Processors, etc. become expensive.

Social factors:
Currently, 32.33% of Pakistan’s population is comprised of school-going students. These
students lack entrepreneurial skills, or they lack entrepreneurial grooming. Parent’s nowadays
don’t want only quality education for their children rather they want them to inherit compatible
skills as well. Our goal is to create such a game that will attract both the students as well as will
attract the parent’s to involve their children in the game. As the population keeps on increasing,
this constantly minimizing job opportunities and by enhancing entrepreneurial skills in the
current youth, this will be a game changer in decreasing the unemployment rate. Social media
has changed the ways of living enormously in the past few years, where now everything can be
easily accessible within the range of your hand. This allows us to attract maximum consumers as
they won’t have the need to purchase any resources, go to a specific place for training,
everything will be available to them with a single click.
During a 2021 survey, 38 percent of video game players still come from the 18 to 34 age
demographic, and seven percent are 65 years and older.

Gender:
According to a survey, about 14% of women play Open-World games whereas about 86% of
males play open-world games.

Income:
Twenty-two percent of American men without college degrees have not worked at all in the last
12 months, according to The Economist, and a small but significant number may have dropped
out of the workforce entirely and now spend their days playing video games.

Education:
According to the survey results, 36.7 percent of responding gamers in the U.S. had graduated
from college.

Who are we targeting:

Age:
Individuals aging between:
10-15 (EASY)
15-20 (MEDIUM)
20-30 (HARD)
Gender :
Our game targets both males and females.
Income :

Individuals that are employed, unemployed, their income level, everyone can play the game
regardless of these factors.
Education —
The goal for our game is to educate people. There are no such qualification requirements for
players, they should just know how to read.
Opportunities:
 parents would want their children to spend time on our app rather than playing any other
virtual game
 consumers that want to make use of their time
Threats:
 Screentime limitations
 Attraction to other social media apps/gaming apps
Technological Factors:
Video games have steadily risen in popularity for years. And with people looking for new ways
to socialize and stay entertained during the pandemic, the trend has only accelerated. Gaming is
now a bigger industry than movies and sports combined (Builtin.com).
Culturally, gaming will only continue to become more mainstream. But what tech innovations
are shaping the future of video games, Virtual Reality(VR), Cloud Gaming, 3D gaming, AI
Gaming,

Opportunity:
The Technology we will be using will have a huge positive impact on our productivity since we
are Providing a Skill Learning game which will be VR, 3D, Multiplayer Gaming and Cloud
Gaming based.. Reaching Millions at the same time and Giving knowledge to everyone. It will
have a positive impact on people life. the New technology also ensures our maximum
Productivity.

Threats:
But the flaw here is that the more the technology is new the more it is costly so high capital will
be required for that and more important we need labor to do this job for us finding experienced
labor is difficult and on other hand can be expensive in our unstable economy (inflation)

SWOT STRATEGIES
1) Maxi Maxi Strategy (Strengths And Opportunities):
1.Use our technical expertise, artists, access to graphic designers and caricature making
experience to avail opportunities such as cloud gaming, 3D Graphics and VR gaming.
2.Easy access to IM Durshal due to enrollment in IMSciences.
3.Producing more quality games by utilizing government training and mentoring programs.
4.Utilizing the assistance of Government Seed funding, National incubation center, Angel
Investors to develop our business.
 

2) Maxi Mini Strategy (Strengths And Threats):

1.Use our strong marketing and technical expertise to compete against strong competitors.
2.Making investments in countries having low labor cost.
3.Increasing games quality.

3) Mini maxi Strategy (Weakness and Opportunities):

1. Meeting our finances with the help of seed fundings
2. The need of technical support could be fulfilled by the technical help provided by SMEDA
3. Through Multiplayer gaming we can expand our customer base, since teenagers are very much
interested in it.

4) Mini Mini Strategy (Weakness and Threats):

1. Use such marketing strategies to get maximum number of customers in-order to be more
competitive
2. Maximizing our profit so as to meet the fluctuations in wage rate
 Porter’s Five Forces
Competitive Rivalry Within the Industry:
The gaming market is characterized by intense competition as game developers compete for
players’ time, attention and discretionary spending. They compete on factors including quality of
gaming content, user experience, brand recognition, as well as access to distribution channels.
There are three main types of competition within the industry: horizontal, vertical and price.
Horizontal competition: is competition which takes place within an industry under same Niche.
Our local competitors are State Bank of Pakistan and worldwide Playrix is working on
entrepreneurial gaming.
Vertical competition: is competition in which competitor introduce something out of the box
The gaming industry is facing many new challenges and disruptions. The rapid growth rate of
internet gaming is challenging the traditional markets. In addition, Server gaming ,virtual reality
(VR) is being widely adopted by consumers and companies. This has significantly expanded the
market and has also created many new challenges for the gaming industry.
Price: The most common form of competition is price competition. Price competition occurs
when a product is sold at a lower price than the products it competes with. In gaming industry
most of the gaming company are using Free 2 play model and in app purchases model due to
which price competition is very high

Threat of new entrant:

The threat of new entrants is high in the multimedia and graphics software industry and
particularly in the video game production segment. The segment's barriers to entry are low, with
minimal government regulation and manageable costs. Programming video games does not
require expensive or hard-to-find materials; more critical is the intellectual capacity to develop a
new or innovative concept and bring it to life through effective programming and coding.

Barrier to new entrant:

One of the major barriers to new entry into the gaming industry in Pakistan is the lack of capital.
To start a business in the industry, a large amount of capital is required, which is difficult to
gather. Another factor hindering the growth of the gaming industry in Pakistan is the fact that the
market is highly concentrated.
Government Regulations:
The lack of a government regulation in the gaming industry, in particular the lack of a clear
licensing system and the low amount of tax paid on gaming profits, have made the gaming
industry in Pakistan more attractive for new entrants to enter the industry. However, when it
comes to the regulation, the Government of Pakistan has not been able to act in a timely manner,
causing a gap in the regulation of the gaming industry. In addition, there have been issues with
the approval of licenses, which is another reason that new entrants have been successful in their
entry into the gaming industry in Pakistan. However, the government is trying to improve the
situation by introducing the licensing system and tax regulations for the gaming industry.

Power of Customer :
The customer in the gaming industry is the biggest influencer. The customers of the gaming
industry will always have the power to decide which of the products and services they should
enjoy. Therefore, it is important to have a good consumer interface, an effective marketing
strategy, and a reliable product. There are also many other elements that influence the customers
of the gaming industry.
Gamers have the option to choose from a large number of gaming and entertainment options.
They can play games on either consoles, desktops, or mobile devices.
Since players have a lot of games to play, their bargaining power is high and they have a lot of
choice to choose from to play a game. This helps the players to choose from the best games and
to easily switch between the games. However, this bargaining power can be used by the players
to choose the games that they want.

Power of Supplier/Developer:
With the rise of the gaming industry in Pakistan the number of game developers has increased in
the last few years. This is due to the increase in consumers spending on gaming machine sales. In
the last 25 years, the demand for games has increased and more consumers are purchasing
gaming machines to play the games. As a result, the number of game developers has increased in
the last few years.
The number and size of games developer in Pakistan has increased tremendously in the few
years. Currently, there are approximately 40 licensed game developers of Pakistani origin in the
country. The gaming industry in Pakistan suffers from serious lack of skilled manpower, and the
number of skilled game developers is limited.
Importance of Developer:
Power of Developer is very high. In 2020 PUBG has changed its game developing company
from TENCENT to KRAFTON during this changing PUBG has faced a lot of hacker and game
crashes and PUBG loss approximately $34 billion in just 2 days
The developers can also be viewed as suppliers. Therefore, they can offer the same services and
products as the original developers, and they can compete with them. The companies are known
as the primary manufacturers, which include game developers, publishers, content providers and
distributors. Other suppliers include retailers, hardware makers and telecommunications
companies
Threat of Substitutes:
The rising popularity of other entertainment apps, social networks and sites could impact the
time and discretionary spending of players on gaming platforms.