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CanGo Company Analysis Report Presentation

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Presentation on theme: "CanGo Company Analysis Report Presentation"— Presentation transcript:

1 CanGo Company Analysis Report Presentation
CanGo Company Analysis presentation by PSH Management. Pinkal Patel, Natasha Harris and Evelyn Soto

2 Executive Summary This instant presentation is to explore into the strategic analysis of CanGo, an internet-based online book-selling and gaming business in the United States. Recommending the strategic plan will offer quality products and services and ensure an increase in market shares that will position you as the leader in the online retail and entertainment industry.

3 Agenda SWOT Analysis Market Analysis Competitive Analysis
Financial Analysis Strategic Recommendation Conclusion

4 SWOT Analysis Strength Weaknesses Opportunities Threats
Online market gaming industry Possibility going global Amazon Walmart Private online retailers Economic slowdown Strategic management organization Time management Communication skills Online growth Less expensive Wide variety Company views products from customer perspective. Strength Weaknesses Opportunities Threats The SWOT analysis is a great way to establish what CanGo is good at, but also what their limitations are, as well as what threats they need to be aware of and avoid. By being aware of possible issues, they can identify opportunities and capitalize in them. We noticed that CanGo’s strengths lie in their online growth, they are less expensive, have a wide variety of products, and the company easily views products from the customer’s perspective. CanGo’s weaknesses are in their lack of strategic management, organization, time management, and productive communication. The biggest threats to the company are Amazon, Walmart, private online retailers, and economic slowdown when customers are unable to readily spend as much. Large opportunities for the company come from growth of online marketing, growth within the gaming industry, and the possibility of going global, which would help the company if the local economy was unstable.

5 Market Analysis https://www.statisticbrain.com/total-online-sales/
Value are a percentages of those surveyed who cited a reason for shopping Online Total sales (No computer vs. mobile data available).The Red show that U.S online Sales combination computer with mobile device and green show shopping made through mobile device. link

6 Top Reasons CanGo Expansion will work
It show Top Consumer Reasons For Shopping Online. Time saving More Variety Easy to compare price No Crowd Lower Prices Spend less on Gas Less taxes Others

7 Marketing Plan 2017 Demographics: 65% of households play video games
Average gamer is 35 years old More adult women playing than boys under 18 67% of parents play video games with their children once per week. 85% of parents know and understand the Entertainment Software Rating Board 96% feel that the rating system is fair and correct Entertainment Software Association .(2017). Essential facts about the computer and video game industry. Retrieved from

8 Comparative Analysis Amazon Inc Barnes & Noble Inc
Strength - one of the largest players Weakness - intense competition; regulatory pressure Annual Sales - $81.6 billion dollars Barnes & Noble Inc Strength - online plus offline Weakness - Substantial physical store and establishment cost Annual Sales - $6.2 billion dollar Amazon.com (Amazon.com, 2015). Barnes & Noble (Lieberman, 2013) Amazon.com (Amazon.com, 2015). Barnes & Noble (Lieberman, 2013)

9 Financial Data Revenue: $50 millions dollars
Net Income: $5.4 millions dollars Assets: $234.9 millions Revenue: $19.17 millions dollars Net Income: 645 billion Assets: $54.5 millions Barnes and Noble - How much does it cost to develop a mobile game? - stylelab.com/company/blog/mobile-technologies/how-much-does- mobile-game-development-cost Pricing Plans for Online Gaming Dear Andrew, Thank you for your input into last week's meeting of the management team. Based on that meeting, as well as conversations with the Board, I've summarized the factors that seem important for our pricing scheme. Please keep all in mind when you make your pricing recommendation for the online gaming launch. Cost of providing the service: $.12/minute, >1.8 million units per month $.115/minute, million units per month Competitive pricing strategy: Be competitive with other brand-name providers. Stay above low-cost competitor (SuperPlay = $.18/minute, WildGames = $.17/minute, BudgetGames = $.13/minute). Financial pricing strategy: Maximize revenue while still generating some profits. Gouging considerations: Price no more than 50% above costs. Elasticity: $.15/minute will generate 2 million units sold per month $.16/minute will generate 1.9 million units sold per month $.175/minute will generate 1.7 million units sold per month $.19/minute will generate 1.6 million units sold per month Revenue: $ 1.5 millions dollars Net Income: $47 millions dollars Assets: $3.2 million Barnes & Noble. (2017). Annual Report. Retrieved from

10 Financial Analysis of Industry
5.524 Million top grossing iphone games - Mobile gaming revenue - 2.618 Million 1.6 Million Statista. (2017). Net sales revenue of Amazon from 2004 to Retrieved from

11 Ratios (liquidity, efficiency, profitability)
Gross Profit margin - 82% (2009) and 60% (2008) Highly Profitable Liquidity Current ratio in 2009 High liquidity and positive working capital Efficiency Return on Assets % in 2009 Inefficient asset utilization

12 Recommendations Create a Mission Statement that empower the company
Have and Open Communication Policy where everyone’s opinion is taken into consideration. Have a flow of Organization Target a Marketing Plan Find and solve financial needs Create an efficient time management solution Take advantage of the boom in the mobile gaming market CanGo shows a deficiency in Strategic Management due to their lack of a narrowed down mission, vision, and value statement. Team members do not have well developed communication skills and it is hindering the ability to work as a fluid machine with one another. Going along with this problem is the general lack of organization with some of the employees. They have a hard time finding the things that they need, and this spills into other areas of productivity, such as time management. CanGo needs to work on the marketing plan, deciding what area they want to work on, who their target market is, and how they want to achieve that. Currently they have little direction of where they want to go but up. Currently the company does not take into account their financial needs. Goals and a plan need to be put into place in order to understand where the company needs and wants to go.

13 Conclusion CanGo is a talented company with great growth potential. With the right marketing, communication and organization, CanGo can go from bookseller to Premium Online Outlet for all virtual merchandise. We believe that by following our simple recommendations, CanGo will surpass their competitors and grow into the next E-retail giant. As we have discussed through this presentation, there are several challenges that CanGo currently faces. However, taking this consultation and utilizing it to its maximum potential can certainly help the company move ahead in the industry, pushing CanGo past the present barriers. While it can be disheartening to hear your company has several items to work on, know that this is a good thing. Being able to see, recognize, and face these issues allows us to come up with this battle plan, and gives CanGo the opportunity to become stronger, improve, and advance.

14 Reference All products require an annual contract. Prices do not include sales tax (New York residents only). (n.d.). U.S. digital games industry revenue by category 2016 | Statistic. Retrieved April 06, 2018, from category-usa/ Amazon.com (Amazon.com, 2015). Annual net income of Amazon.com from 2004 to (2017).Statista. Retrieved from et-income-of-amazoncom/ Barnes & Noble. (2017). Annual Report. Retrieved from Barnes & Noble (Lieberman, 2013) Entertainment Software Association .(2017). Essential facts about the computer and video game industry. Retrieved from Morningstar Real-Time Market Data. U.S. (2015). Technology Sector -financial strength, leverage, interest, debt coverage and quick ratios, CanGo Financial Information, n.d. Statista. (2017). Net sales revenue of Amazon from 2004 to Retrieved from revenue-of-amazoncom/ U.S. E-Commerce B2C Sales Statistics. (2017, October 03). Retrieved April 06, 2018, from sales/

15 Pinkal Patel

16 Natasha Harris

17 Evelyn Soto


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