Company Challenge Report: Innovation at Escapade NZ - Assignment 2

This report examines the application of innovation within Escapade NZ, an organization specializing in live adventure games. It begins with a brief overview of the company, followed by a discussion of the methodologies employed to diagnose the problem of increasing competition and lack of innovation. A prototype is introduced as a solution, including strategic steps, a SWOT analysis, and risk mitigation strategies. The report proposes a new live game concept with three episodes designed to entertain customers. The report concludes with an analysis of SMART goals and the potential impact of the proposed innovation on Escapade NZ's market position and revenue. The report highlights the importance of innovation in addressing market challenges and enhancing customer satisfaction.

Running Head: Assignment 2 - Part A - Company Challenge Group Report
ASSIGNMENT 2 - PART A - COMPANY CHALLENGE
GROUP REPORT

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Assignment 2 - Part A - Company Challenge Group Report
Executive summary
This report has focused on the application of innovation in the Escapade NZ
Company. At the beginning of this report, a brief outline of the chosen organization has been
provided. Appropriate methodology selection as helped to address the reason behind
problems. The diagnosis of problem has revealed that this organization is facing issues
regarding increasing competition and lack of innovation. A prototype has been introduced in
this report as innovative idea that can help this organization to achieve SMART goals. This
proposed prototype has been described properly and strategic steps have been included. The
SWOT analysis of this idea has helped to understand possible strategic situations. Potential
challenges and process of risk mitigation have been included. At the end of this report, a
conclusion has been done from the overall discussion of this report.

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Assignment 2 - Part A - Company Challenge Group Report
Table of Contents
Introduction................................................................................................................................4
Description About the chosen organization...............................................................................4
Methodologies............................................................................................................................5
Problem diagnosis......................................................................................................................6
Project scope statement..............................................................................................................8
Definition of target and innovation type..................................................................................11
Prototype..................................................................................................................................13
Strategic steps...........................................................................................................................14
SWOT analysis of the innovative idea....................................................................................16
Possible challenges and mitigation of risks..............................................................................17
Conclusion................................................................................................................................18
Reference list............................................................................................................................19

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Assignment 2 - Part A - Company Challenge Group Report
Introduction
In this modern age, a company faces different types of challenges, which can impact
on revenue turnover of the company. Different problems can be faced by organizations like
monotonous products and services, lack of innovation that can impact on satisfaction rate of
customers. This decreases the competitiveness of a company and creates problems in the long
run. Hence, it is essential for manager to monitor performance regularly and make strategic
decisions to innovate the service or products. In this report, problem diagnosis of escapade
New Zealand has been done and a solution is given that can help to mitigate the problem.
Description About the chosen organization
Escapade NZ is one of the most innovative organizations that allow people to play
real adventure games with their friends and families. It can be assumed that this organization
is one of t6he best options for live games in Auckland. Mission of Escapade NZ is to provide
an innovative experience to their customers through their live game service
(Escapadenz.co.nz, 2019). Vision of this company is to help people to release stress and
enjoy the beauty of life through playing live games with their dear ones. This organization
currently has a small market share and they currently have near about 21 employees. Revenue
per year is approximately 4.2M. It can be found that this organization has grown over time
and their growth is still being continued due to its innovative services. Arrangement of live
games is the main service of this company and they are attracting customers of all age
towards their innovative live games. This company believes in digital marketing for attracting
new age potential customers towards their games. However, this company is facing
increasing market competition and challenges regarding changing needs of customers. Due to
this reason, an innovative solution is required to be designed and applied.

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Assignment 2 - Part A - Company Challenge Group Report
Methodologies
In this project, primary and secondary methodologies are taken for finding the causes
of the problem. Market research has been done to collect secondary details about the causes
of the problem. As opined by Eniola & Entebang (2015), secondary market research is a kind
of method that helps to collect information or data from secondary sources like articles. This
method helps any business organization to collect information about different market
elements specifically and gain an idea about the latest trends. Moreover, Roy & Sarkar (2016)
contradicted that secondary market research helps a business organization to save time and
money rather than traveling and collecting information. In this study, different credible
sources like websites of competitors and other reliable websites and articles about the
industry have been explored to collect data and information. This has helped to address the
root cause of the problem. It has been found that competition in the industry has increased to
a greater extent. Different other companies are offering the same products and services at
lucrative offers. Moreover, the nature of their games is also different and attractive that
Escapade NZ. Different other firms like Rotofobia, Crate escapade, Escape hunt Auckland is
offering the same services at competitive pricing (Escapadenz.co.nz, 2019). Different
websites are also explored for collecting reviews of customers regarding the games and it was
found that they have given positive reviews to those games as compared to escapade. Nature
of data is essential in this kind of methodology and researcher needs to aim to find a specific
kind of data. In this research, data about market competition and customer satisfaction was
searched.
On the other hand, primary method of data collection was also applied in this study.
Survey was conducted to gain information regarding preferences and current experiences of
the customers. Survey is a process of data collection that is done through the help of

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Assignment 2 - Part A - Company Challenge Group Report
questionnaire with predetermined answers (Dahlander, O'Mahony & Gann, 2016). Survey
helps to collect primary fresh data from target population that helps in conducting research.
Different questions can be sent to target population through different channels like email or
post. Feedback can be collected from the target population in a given time, which helps to
save both time and money. This methodology has helped to collect information about
consumer preferences and current experiences about the service of escapade NZ. As stated by
Ahn, Minshall & Mortara (2015), the main purpose of survey methodology is to gain insight
about opinions, views, and thoughts of the target population. In this study, this methodology
was adopted because customer base of escapade is large and it could be advantageous to
collect data from them through survey questionnaires.
Problem diagnosis
Escapade New Zealand is facing different kinds of problem that can lead to losing its
leading position in the market in the future. Through adopting and implementing the above
methodologies, it was found that this firm is facing the problem of increased market
competition and lack of new things and innovation in games. It was found from market
research that this firm is facing rigorous competition in the market. Many other companies
are offering similar services to escape room games to the customers that include Rotofobia,
Crate escapade, Escape hunt Auckland (Escape-rooms.co.nz, 2019). Hence, increased market
competition in the market can impact on the revenue and turnover rate in future. These firms
can offer lucrative games like the lost villa, bomb threat, and others. This is attracting both
local customers and international tourists.

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Assignment 2 - Part A - Company Challenge Group Report
Figure 1: Revenue rate of Escapade NZ
(Source: Zoominfo.com, 2019)
It can be seen that increased competition in the market has impacted the revenue rate
of this firm as minimal growth has occurred in different quarters in 2019 (Zoominfo.com,
2019). Hence, it is essential for ensuring innovative services to gain competitive advantage.
Moreover, it was found that customers of escapade find monotonous and not
interesting. Different latest reviews have been collected from relevant websites and other
sources.it was found that majority of them have given a review regarding monotonous games
and lack of proper service by this company. Lack of proper innovation and poor services can
impacts on experiences of the customers that motivate them in switching of the company
(Gnyawali, Madhavan, He & Bengtsson, 2016). Moreover, poor reviews are also impacting
on brand image of the company that can increase risks in future.

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Assignment 2 - Part A - Company Challenge Group Report
Figure 2: Review of customers about Escapade NZ
(Source: Tripadvisor.in, 2019)
In addition, from the survey, it was found that target customers of this firm are more
willing to experience theatrical games. The target population whose age is between 20 to 25
years is showing their interest in this kind of games. Hence, it is essential for this company to
bring innovation to their services to satisfy this vast range of customers. They are also willing
to pay more for this type of games that can help them to entertain.
Hence, the main problems of market competition and monotonous services can be
eliminated through designing proper and innovative games that can help to increase
satisfaction rate of target customers.
Project scope statement
Scope of this project is high in providing innovative live fun game experience to the
target customers of Escapade NZ and this innovative idea can help this organization to attract
potential customers towards their business.

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Assignment 2 - Part A - Company Challenge Group Report
Description of the prototype
The prototype has been designed to entertain people with a funny setup. This
prototype is demonstrating a funny script that may be played by participants to have fun with
their friends and families. According to Bello, Radulovich, Javalgi, Scherer & Taylor (2016),
this kind of fun games are getting more popular and most young age people are showing
interest in participating in this kind of live games. The prototype has included three main
episodes and several activities are mentioned in terms of each of the episodes. This is a 30
minutes game and clients are allowed to choose their roles by themselves as per their choice.
The script will be given to them before starting the live game.
First episode: In the first episode, there are several activities that can be performed
by a group of friends. The concept of marrying on live TV show is quite new and this is the
first activity of this episode. Two people will get married on live TV show. It will be ensured
that wedding staff is present in this scene and the company will allow clients to act as
wedding staff. One host for the TV is required to explain the news of wedding and the
company may give this responsibility to one of their paid staff. It seems like; the audience is
required to complete the scenario. For that, other friends of client can be considered as an
audience. As mentioned by Forés & Camisón (2016), this kind of live game shows can be
successful with the help of cooperation from all the participants and the company staff.
Collaborative performance can make this kind of games more funny and entertaining.
Second episode: This episode will start influencing the audience to laugh harder. At
the beginning of this episode, a man will get dressed like a bride and will enter into the scene
with a girly attitude. This actor of this game will pretend to be the wife of the groom. He will
claim that he is the wife of that man and he cannot marry another girl. As mentioned by

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Assignment 2 - Part A - Company Challenge Group Report
Sheng & Chien (2016), a man pretending to be a woman in performances drive the attention
of audiences. Both performers and the actors will get entertained by this concept.
Third episode: In this episode, a lady will enter into the scene and will mention that
she is the ex-wife if this man. Additionally, that lady will confess that she still loves her
husband and does not want him to be married to another girl. At this moment the husband
will be shocked to see this lady. It will be revealed that this lady has employed the man to
spoil the second marriage of her husband. As stated by Andries, De Winne & Bos-Nehles
(2019), this kind of twist and turns in live games ensure fun and entertainment for the
participants and audience.
Analysis of SMART goals
Goal 1: Presenting a new model in the entertainment industry to beat competitors
Specific Measurable Achievable Relevant Time-bound
This goal is
specific as it
will help in
mitigating the
issue of
increasing
competitors of
the chosen
company
This company
may measure
the growth in
their revenue
after starting
this new live
game
Feedback of
customers on
this game can be
reviewed
This goal can be
achieved
through
following the
prototype to
design a new
innovative game
This is relevant
as it can help the
organization to
ensure
innovation and
beat competitors
This goal can be
achieved with 1-
2 months

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Assignment 2 - Part A - Company Challenge Group Report
Goal 2: Providing opportunity to people to have fun and entertainment through
innovative live game show
Specific Measurable Achievable Relevant Time-bound
This is specific
as this
innovative idea
will be able to
increase the
level of
customer
satisfaction.
This company
may ask their
customers to
share their
reviews
regarding this
innovative game
and it can help
to measure the
effectiveness of
the prototype
This can be
achieved by
implementing
the prototype
into the action.
Staff members
and customers
need to
understand the
script and d
perform
accordingly to
help this
organization to
achieve this goal
Achievement of
this goal can
help this
organization to
increase the
level of
customers and it
is possible to
attract potential
customers
towards this
game. As a
result, revenue
generation will
be enhanced
This goal can be
achieved within
1-2 months
Definition of target and innovation type
The target of innovation is young age customers who get attracted to these kinds of
games. In the survey, it was found that near about 40% of customers who are interested in
these kinds of games are aged between 20 to 25 years. Moreover, 30% of target customers are
aged between 26 to 30 years of age. As stated by Ritala, Husted, Olander & Michailova

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Assignment 2 - Part A - Company Challenge Group Report
(2018), young aged individuals like to experience more thrill and they want to have thrilling
game experiences. Hence, old-style monotonous games cannot help this firm to satisfy this
large group of customers.
There are different types of innovation that include radical, semi-radical and
incremental innovation. In this case of escapade NZ, radical innovation can be seen because
substantial changes in both business model and technology are required for this firm to satisfy
the target customers. As opined by Eniola & Entebang (2015), radical innovation occurs,
when significant changes can be seen in both technologies of a firm and business model. Both
the change need to be conducted simultaneously in order to gain desired business objectives.
Radical innovation can help in shifting the direction of a company or industry and help them
to gain a competitive advantage. Moreover, Ahn et al. (2015) argued that radical innovation
can also be called disruptive innovation as it helps in gaining in changing direction of a
business. As mentioned in the prototype, new firm of games with a new script can be
implemented in the company to attract the target group of customers. For implementing this
new script, it is essential to have new and innovative technologies like modern sound system,
luxurious and comfortable theatres and other accessories. This can help to improve the
gaming experience and desired objectives of competitive advantage and increased revenue
can be achieved. As stated by Brace (2018), radical innovation changes or destroys the
current system of operation of business model that is old. In this firm, the business model is
old and need to be changed. Radical innovation replaces the current design and processes
with new and innovative systems. Hence, this helps to gain desired business targets and
competence of level of business gets increased. For coping up with the current market
competition and fulfilling demands of customers. It is essential for this company to have
radical innovation.