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Game Truck's Digital Footprint: Strengthening its Market Position

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Added on  2019/09/30

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The Game Truck website reflects the firm's passion for gaming and recreational activities for children, showcasing its commitment to providing game instructors and integrating indoor and outdoor experiences. The website reinforces its marketing concepts, assuring users of full intended benefits.

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Game Truck Case Study 1
Game Truck Case Study
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Game Truck Case Study 2
Franchising
1. According to the case study Game Truck has become a franchisor. Provide a definition of
franchising?
Franchising is a term used to define a business relationship between an established
business proprietor and a dealer. In franchisor-franchisee relationship, the franchisor provides
the authority to other party, i.e. franchisee to conduct business under the trade name of an
established franchisor. The franchisor charges a particular amount of annual payment along with
some percentage amount of the total revenue or profit as a royalty from the franchisee for the
trade name
Under franchisor-franchisee agreement, both the franchisor and franchisee is
motivated by mutual gains; the franchisor is motivated to expand its overall business without
investing further capital and franchisee is motivated to use the brand name of an established
business based on the notion that starting from scratch involves lots of risks and is a time
consuming affair.
2. Business considering becoming franchisors must consider a number of possible benefits and
challenges of this strategy. Explain two possible benefits and two possible challenges and
provide an explanation for each benefit and challenge identified?
Businesses considering becoming franchisors have to consider both challenges and
possible benefits. Possible benefits and challenges and vary accordingly with different types of
businesses.
Following are the challenges:
i) Products and services offered by the franchisors become a reputed trade and
brand name by the time franchising is considered and franchisors have to make
sure that the franchisee does justice to the brand name by adhering to the
quality norms. Adhering to the quality requirement is an ongoing process and
not limited to one time quality check generally done at the time of providing
franchisee license. This becomes challenging at times as it is not possible to
monitor every activities of franchisees on a daily basis.
ii) Franchisors are required to make sure that internal competitions among
franchisees are avoided to invite franchisee application. An individual
considering franchisee business would not want to engage itself in a
competition with any business holding the same franchise. This at times
becomes challenging for franchisors since they must maintain a particular
distance from one outlet to another and they also have to consider the business
prospect of an identified area involving lots of market analysis.
Following are the possible benefits
i) Franchisors can expand their businesses without having the need to invest
manpower and capital once their brand name are well established generating
profits in the form of franchisee fee and monthly royalties.
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Game Truck Case Study 3
ii) The franchise system allows the franchisors to access human capital of the
franchisee and bring them under the purview of the brand that helps to foster
innovation and further development of the business.
3. What skills are needed by a small business team in order to become a successful franchisor?
Becoming successful franchisors needs skills to identify sellable concepts, opportunities
and threats to the prospective franchisors’ business. In the game truck business case it is
clearly seen that Novis, the owner of game truck at first came up with idea that is
consumable in the market with patented rights. Once that patented rights are secured
and the business becomes initially successful, the next process of identification
opportunities begin where Game Truck identifies accessible locations and interested
participants in purchasing the trade mark and brand name of the business.
Identification of threats involves probable deterrence to franchisees in initiating the deal
and mitigates those threats. Game Truck headquarter base at Arizona constantly
evolves to bring innovative cutting edge technology and make the gaming experiences
cost effective for both franchisee and consumers. One must keep in mind that
innovations are always vulnerable to upcoming radical innovations especially in the field
of business that is technology dependent.
4. Imagine that you are considering becoming a franchisee of game truck. Identify and critically
appraise two arguments in favor of becoming a franchisee in Game Truck?
Having imagined always as a businessman and in born technocrats in me, Game truck
franchisee is a big opportunity for me to involve myself with the brand name that has
redefined the gaming concepts in US. Starting a business from scratch with unique
concept and identity can always be a challenging and motivating at the same time. This
is the world where businesses are not only about radical innovations and requires their
model to keep changing from time to time. I believe that a franchise agreement with
Game Truck would give me an opportunity to showcase my talent as an equal
beneficiary in the Game Truck family as they always work towards betterment for their
business and I as a contributor can be an important part of it.
E-commerce
1. Using the knowledge that you have of Game Truck (gained from the website and the case
study) outline ways in which you feel that the design of the website reflects the image of the
firm?
The design of the Game Truck Website reflects the gaming passion of the children and
shows its concern for recreational activities of children. The website though starts with a zip
code bar where users can access their nearest dealer for subscribing the game truck for
weekend or holiday parties. The case study says that the Game arcades comes with game
instructor and the website shows that the Game Truck is committed to providing game
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Game Truck Case Study 4
instructor. The concept of Game Truck is based on integrating the indoor and outdoor
experiences for recreation of children while keeping the essence of digital video gaming alive
and dominant. The website shows that it is dedicated towards its constitution under taglines of
Video Games, Laser tag and Bubble Soccer. Overall, the design of the website reinforces its
marketing concepts and assures that users would are guaranteed full intended benefits as
promised by Game Truck.
2. Critically assess the strength and weakness of the website?
The strength of the website is depiction of what it is meant for i.e. children’s
entertainment. It reinforces its marketing commitments to consumers. It is easy to access and
user friendly and can be managed by everyone. The website is plain and simple overall as it
aligns with the business objectives of Game Truck.
The web page on the other hand has some weaknesses too. The web page seems to
have forgotten its agenda of involving parents and in pursuit of simplicity; it has done away with
parents who according to the business objectives are an important part of the children
entertainment process. The educational motives of the Game Truck are also missing from the
website. Moreover, the children are shown in a jubilant mood ready to defy their parents and
this has the potential to ward off any business prospect of the company.
3. Suggest two improvements that you would make to the website, providing justification for
why you have proposed these suggested changes.
I would like to suggest that the websites be changed in the following two ways for
better depiction of its business goals and objectives.
i) Websites can show three different animation video displaying children entering the
truck, engaging in outdoor activities, and dedicated to learn about the computer gaming
technology. The business objectives as seen in the case study is to integrate the gaming
concept by involving children in outdoor activities and inspiring them to learn about ifs
and buts of the gaming technology. The display of outdoor activities would motivate
parents to subscribe to packages as parents seem to be wholeheartedly concerned
about the growing child obesity in western countries. This concern of parents could be
addressed demonstrating that their children would come of the traditional indoor
games that promote laziness and lethargy among children.
ii) The website could further add to its value of it involves parents and children in a friendly
mood as Game Truck promises that their gaming concepts handover the remote control

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Game Truck Case Study 5
Growth and competitiveness
1. Game truck is currently a period of expansion. Using Porter’s five forces model analyze its
competitive position as it undertakes this strategy.
Porter’s business model is based on the idea five important forces acts as a determiner
of your business prospect. Let us analyze competitive position of Game Truck with respect to
five important forces of porter model as the company seeks to expand further.
i. Supplier power: Game Truck mostly runs on equipments that are high on costs such as
laser tag equipments, tow vehicle, tow vehicle wrap, LCD equipments and computers,
and other technological gadgets. Suppliers of these items go through intense
competition in the market and moreover these are one time investments franchisee has
to make along with some other additional office equipments. Game Truck always
ensures that its franchisees are assisted in every possible manner to set up their
business. Hence, the supplier’s power is limited for further expansion of business as it
has its own base at Arizona that invests in developing cutting edge technology to
enhance gaming experience for consumers.
ii. Buyer Power: Concept of the business model of Game Truck comes with patented rights
and hence the ultimate consumers so far have only one choice when it comes to arcade
gaming at home for children. The major concern however is the franchisees who are
prospective buyers of the Game Truck Franchisee model. Franchisees though have no
other options in similar business investments however gets deterred due to high
investments required to start a business. Franchisees may consider other businesses to
avoid risking huge investments meant only for the super rich people.
iii. Competitive rivalry: The gaming industry has undergone considerably higher instances
of changes than any other industry. Global Revenues from mobile gaming is set to
surpass revenues generated from console gaming as mobile gaming is turning out to be
flexible for children enabling them to access games at a low price. Android and IOS
operating system are constantly upgrading their gaming features to lure game maniacs.
Literally Game Truck faces no competition from other consoles as it works on totally
different model that comes with patented rights and there are high costs associated
with providing similar gaming experiences.
iv. Threat of substitution: Threat of substitution comes from none other than consumer’s
choice for android and IOS gaming experiences. The way Samsung, Google and Apple
have been constantly upgrading their features for gaming experiences, you never know
what they come up next to provide better community gaming experiences. Moreover,
the high cost of hourly subscription for consumers is also may act as deterrence for
console truck gaming experiences.
v. Threat of new entry: Threat of new entry in case of Game Truck is not there as it is a
business that comes with patented rights and operates on a totally different model.
Moreover the costs of coming up with similar products and services by others in the
same console gaming seems too tall a task for any new entry as the investment is too
high and Game Truck continues to expand barriers of innovation to retain its market.
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Game Truck Case Study 6
Having said all the points, I am optimistic that Game Truck business is there to stay as it
has redefined console gaming experiences and provided it a new dimension fully. Console
gaming is an altogether different experience for gamers.
2. In the case study it is suggested that the corporate sector might be a potential new market for
game truck. Assess the potential that this new market might have.
The new market in the form of corporate sector might be a better idea for Game Truck
Business as corporate parties have the potential to generate greater revenues and can provide a
decent marketing space for family subscriptions.
3. Game Truck faces a number of challenges as it expands internationally. Identify two such
challenges and, in each case, outline a strategy that could be used as a response to the
challenge?
The two challenges facing international expansion of Game Truck is the continuous evolving
Gaming Industry in the form of Android and IOS and the low cost outlets at locations providing
console gaming experiences.
The threat of the evolving mobile gaming technology can be neutralized by creating awareness
among parents regarding how the Truck enables them to lure their children and control their rising
mobile use that has become concerns for many parents. Child obesity and outdoor inefficiency of
children are on the rise and Game Truck just needs to hit the nails hard on these aspects to create
markets.
Low cost outlets are unable to provide similar experiences for children parties but Game Truck
definitely needs to do more to cut down overall costs and it is for the Arizona based headquarters to
decide if it is high time they considered using tabs and mobile apps to make their products and
services cost effective for franchisees and consumers.
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