Entrepreneurship and Business Development (CCCU)
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Executive summary
The overall study majorly focused on the news business development across the UK. The innovation in the new business development is blockchain technology to support the customer's effective services safely and rapidly. The new game software was developed and launched by Gamify to target the young generation across the UK. The new business is known as the G-verse, which aims to develop a wide range of game software with blockchain innovation. Different key elements and feasibility assessments are analysed to identify the UK market. Potential risks are also identified with its key opportunities and solutions at the marketplaces.
Table of Contents
Financial projection of G-Verse games software development company 10
4 Scrutinizing the Business Idea 11
4.1 Value Chain Analysis of the Business 11
5.1 Identification and discussion of risk management 13
1. Introduction
This study will provide in-depth information about the innovative business concept for startups across the UK. New business planning aims to make games software for the UK people that will provide speed and security to the users. The first software name is Gamify, which will be launched soon in the UK market. The new gaming industry will be known as the G-verse organisation developing the games software for the Gen-Z. This study will provide in-depth information about the new software generated by technology-based startups. The organisation aims to develop its software business in the gaming sector across the UK. Therefore, it is planning to develop its products and services, identifying core values, researching the target market, location, and customer engagement.
To develop its business effectively, it plans to analyze the market and other organisations already in this business. The financial feasibility will also be evaluated, essential for determining the cost of products, digital integration, infrastructure, advertising, and blockchain technology. The innovation will integrate blockchain technology that provides Gen-Z security and rapidness in using and playing the online game by installing Gamify on their mobile phone. Additionally, there will be a focus on identifying the key components of the value chain and business model canvas (Sibalija et al., 2021). These models provide significant and innovative assistance to game software development and new innovative concepts of the G-verse. Company. It is a startup that will focus on developing its discussion and identification of risk management. This study will be based on qualitative and quantitative data collection approaches that will be used to identify the potential risks that the G-verse company can face. Further, it will provide the potential risk management and opportunities that may protect the growth and sustainability of the new business across the UK.
2. The Business Concept
The G-verse company is a new start-up that will provide software services related to games and entertainment to young and teenage people across the UK. The new company aims to integrate blockchain technology in its new game software, which will make the application different from other industries (Stanco et al., 2020). Several games industries do not provide the assurity to their users to access the games services with wide privacy and security. Therefore, the G-verse is planning to develop Gamify software that will have effective technological features. It is a new product based on a new innovative approach and blockchain technology that determines the speediness and safety ness of its services (Knez et al., 2021). The unique selling point of the services and products will be chosen as different marketing strategies like an advertisement, e-commerce sites, and digital platforms to engage a wide range of customers.
The target market of the G-verse (games software development company) will be the UK market dominated by the smallest to largest gaming industries such as Codemasters, Bossa Studios, and others. The target audience will be the young generation, especially Gen-Z, who play video games (Yang et al., 2020). However, there is a major concern about playing different video games online. Because there is a wide range of fraudulent available in the market who hack the mobile phone of people after providing fake gaming services. Therefore, G-verse can take responsibility for delivering gaming services by integrating blockchain technology.
This technology will provide entertainment, privacy, and an instant login and logout facility to users who will install Gamify on their mobile phone. However, it can be the first application launched by the company. Furthermore, supported software will be generated by increasing the major customer's engagement with developing their experience in this industry. However, children and old age people can also access Gamify due to its easiness, accessibility, loyalty, and security (Rahmiati et al., 2020). The Segmentation, targeting, and Positioning will be audience-focused approaches to develop the marketing communication. It can help the new business to identify the customer's perception to apply effective innovativeness in its product.
The core values of the new company are making effective decisions and sharing true beliefs with its potential customers. It is accountable for innovative activities with blockchain and digital integrity in the product's new features. The company is focusing on being fair, honest, and reliable enhancing the commitment and enthusiasm with developing professional and personal development (Hultberg and Pal, 2021). It is planning to meet the agreed timelines, deliver the commitments, and focus towards agreed priorities. Its core values are flexible and responsible, striving for excellence across the UK. Besides, it can also focus towards developing users' mindsets with continuous development and improvement in the Gamify software in the new gaming industry (G-verse).
The company strictly acts on regulatory requirements to ensure its safety, integrity, and fairness. Therefore, blockchain technology will be developed under the guidance of the government security department of the UK. Additionally, it will also act on respecting the people who engage with the organisation and contribute to its success (Tan, 2021). The company’s owners will respect those who contribute to the business's success. They will foster the culture and environment where individuals will receive and give reviews of the organisational acts and performance. All the employees will be encouraged, supported, and work together. The owners must focus on achieving the shared goals and informing their individuals.
The G-verse company will focus on building an advanced software development company providing video game services to the UK people. Gamify will be the first launch of the company by providing advanced innovation such as blockchain technology integration. To develop the business, a strategy will be made to measure the scope, scale and permitter of the new business (Antràs and Chor, 2022). The company will be designed, built, and installed with effective game services in one connected system. It will simplify asset management, identifying all stages of the product's lifecycle. Its asset management solution will help it manage the manufacturing process as well. The setup will be developed involving approx. 1 to 5 employees who will contribute to the business's success and development in the upcoming future (Chigada and Madzinga, 2021). Additionally, in the coming years, the G-verse is also focusing on developing the strength of its employees, approx. 15 that will be increased with adding another year.
The business goals and purpose will be determined along with developing an effective business plan. They will also develop standardised and automated processes to generate effective innovation within the industry. A large number of customers will be engaged with the use of advertisements, social media platforms, digital marketing, and different media like news. A business map is required to make the perfect brand strategy for creating thoughtful operations and processes. Scaling is necessary for measuring all the activities and perimeters of a business. It helps improve the business revenue by reducing resource and maintenance costs (Faroukhi et. al., 2020). The permitters will also focus on expanding the customer base, understanding its new market, and increasing the current services and products. A small office will be chosen for the new startup. Its innovative products and services will be responsible for creating, designing, and operating the business.
The business will be planned to be set up across the UK nearest to the Canterbury Christ church university. It will be the best college that certainly help the new business to engage Gen-Z belongs to the CCCU across the UK (Chigada and Madzinga, 2021). The video gaming market across the UK is the largest in Europe and ranks ahead of France and Germany in annual revenue. The Video gaming market across the UK is identified as a majority that will help new business development. Additionally, the video gaming users in 2024 are identified as approx. 37.7 million across the UK. Additionally, the online sales for video games in 2023 were estimated at approximately 97.5%. Therefore, the chosen location is determined as best for future business development.
The main key stakeholders of the new game’s software development company (G-verse) will be customers and employees. The company will engage the games software developers, software engineers, technical experts, social media managers, app developers, customer executives, partners, shareholders, cleaners, peons, and awards. All will be chosen to contribute to the organisational success in a different manner. Software developers and app developers will be responsible for making the game's software and applications as well (Lyu et al., 2024). Technical experts will handle technical glitches in the system, software and mobile phone.
Social media managers will handle all the activities related to digital marketing, online advertising, promotion and customer engagement. Customer executives will be responsible for engaging to convince a wide range of customers to solve all their queries (Goodstein, 2021). The business partners will support the business to develop in the marketplace. Shareholders will make decisions and contribute to the financial activities and information. Peons, cleaners, and wards will take care of dietary services, cleaning, and office security. Customers will also be the internal stakeholders who are considered a significant part of developing the business through the sales and purchasing.
3. Viability Analysis
STEEPLE analysis identifies different external components that may affect the new business across the new market, country, and area. There are such as Social, Technological, Economical, Environmental, Political, Legislative, Ethical, and demographic.
Social – The new business will have to analyse the social environment of the UK that significantly impacts the business and activities. They should analyse the market trends, customer awareness, customer experiences, and customer interest. To identify the customer and market’s perspectives and be connected with them the company will conduct market and user research. It can be online and offline (Lyu et al., 2024). Additionally, the company will also keep a focus on social movements and their impacts on gender and ethnicity. It will be helpful in future business development and win the customer's trust.
Technology- The company will also determine the technological advancements and current trends of modern technology across the UK. Advanced technology, such as artificial intelligence and modern digital trends, run in different gaming industries across the UK. These technological trends of the UK will surely support the new business G-Verse to develop their business and win the customer's trust. Its focus on integrating blockchain technology will also help the new business to develop effectively in the new market and compete with the other gaming industries (Hossain, 2024). However, initially, the business managers may face a lack of business development due to technical errors and glitches. These issues can generate hacking and data security risks. Getting advanced awareness like growth in robotics and updated equipment will surely support the G-verse to acquire the business growth.
Economic- The global and national economic viability impacts the new business significantly. The company should make global economic decisions towards business and new markets. The analysis of taxes, interest rates, inflation, recovery, tariffs, and economic statements of other gaming industries (Campolo and Crawford, 2020). Economic analysis is significant for purchasing resources for business and identifying the revenues and cost of the product in the UK market.
Environmental- G-verse will also identify the macro-environmental factors that can impact new business. To open a new business in a new place, it is essential to focus on threats like natural disasters, climate change, vehicle emissions, carbon impacts, green energy impacts, and others (Xu et al., 2021). The new business managers should develop their awareness and make pre-planning to save their business from potential incidents.
Political- The UK’s political environment and government legal decisions conversely may impact the games software development business. These changes can be like ideological direction, policy changes, trade missions, international treaties, and especially, the ban on technology (Deora and Chudasama, 2021). The new business members should develop their knowledge about the legal and political rules of the UK and should follow them appropriately to win the government and customer’s trust.
Legislative- The legislative environment also can impact the new games software business across the UK These changes can be in terms of health and safety laws and regulations for the workplace employees (Bhadouria, 2022). These laws can change any time and are also found in various forms like minimum wages and internships.
Ethical- The company will follow all the policies that determine the ethical practices at the workplace. However, a change in ethical considerations can impact the business majorly. Ethical issues can be found, such as demographic issues, food issues, modern slavery, and labour rights (Perwej et al., 2021). These changes strictly affect the new business environment and should be followed with advanced knowledge.
There are 5 factors to analyse the market competition and customers across the UK concerning the gaming industry. These are Porter’s 5 forces that will be analysed as:
Competitive rivalry- Different competitors across the UK may affect the games software development company’s business growth. Xbox.com is the largest gaming industry across the UK and has approx.. 234.14 million visitors, 38.69% bounce rates, and 94 authority scores. Additionally, Nintendo.com was also identified as having 121.72 million visitors, with a 50.15% bounce rate and a 92-average score (Ferrari et al., 2020). Another gaming industry is Smthstoys.com which has 11.22 million visits with a 41.31% bounce rate and 72authority scores. These are the largest competitors of G-verse which can be challenging for developing the business.
Supplier power- The bargaining power of the suppliers across the UK in terms of supplying gaming features and services is identified as average (Parrott et al., 2020). Suppliers are responsible for making a huge difference in developing the video gaming industry at the marketplaces. Generally, the switching costs of gaming software suppliers are identified as low who are responsible for developing the technology and innovation in gaming such as blockchain.
Buyer power- The bargaining power of buyers was also found as low in the gaming industry. It helps the business to establish the key players that may compete in the marketplaces (Schaller, 2022). The low bargaining power of customers may increase the costs and revenue of the game's applications and software.
Threat of substitution- There can be a threat of substitution across the UK in terms of the gaming industry if the new business finds any substitution that replaces their newly launched products and services at the marketplaces (Parrott et al., 2020). If customers prefer the substitute in place of a real generated product and application by the G-verse then it can be threatful for the business.
The threat of new entry- The new entry of a new business in the UK market, laced with innovation, also is threatful. It may spoil all the business growth and sales (Ferrari et al., 2020). Therefore, G-verse should analyse its existing and new customers along with its key business strategy for a higher competitive edge.
Financial projection of G-Verse games software development company
|
2024 (UK pounds) |
2025 |
2026 |
Opening cash balance |
700 £
|
900 £
|
1100 £
|
Estimate sales |
800 £ |
1000£ |
1200£ |
Cash inflows |
700£ |
900£ |
1200£ |
Cash outflows |
800£ |
800£ |
800£ |
Another source of income |
400£
|
400£
|
400£
|
Closing balance |
3400£
|
4000£
|
4700£
|
Different ways to generate the cash for new business.
The new business managers should be determined to provide offers and discounts to their potential customers to develop a wide range of customer engagement in the industry.
They should focus on checking the customer's credit and payments, which they pay through credit cards (Jin et al., 2022). Additionally, developing a buying cooperation can generate effective financial projections and improvements.
They should improve the company’s stock and inventory management and develop their sense of invoices quickly and immediately. They allow their customers to use electronic payments and evaluate them later (Das et. al., 2021). They also should increase their prices and use high-interest saving accounts.
The value chain model is a model that is used for the description of the activities that are involved in the creation of products or services (Knez et al., 2021). It includes a detailed explanation of procedures involved in the production procedure from the beginning to the final disposition. The purpose of the value chain includes the company understanding its competitive benefit along with identification of their lacking areas and in increasing their efficiency. The advantages of using this model in a company include gaining competitive benefits as it aids the organisation in building a separate identity and differentiate from other companies (Stanco et al., 2020). The model also aids an organisation in the identification of the areas where the funds could be saved and the expenditure could be reduced making the business strategy that is focused on making maximum profit.
It also helps a business identify its weak points that need improvement, and the decisions that could be made to improve these aspects could improve the entire processing of the organisation, which leads to increasing its overall efficiency (Rahmiati et al., 2020). A value chain model also aids businesses with the recognition of the major components of the value chain. It would include the primary and support activities that would be required in the development of the products and services. These links and dependencies would eventually produce good results for the company. It would also help an organisation with the analysis of the perception of customers.
There are two components of the value chain model that could be applied in the G-verse for better result generation from its software Gamify. The primary activities include several core procedures that are the deciding factors that are involved in the production of the products. Inbound logistics is the first one of them, as they are treated as the receipts of raw materials that are related to the ownership directly (Yang et al., 2020). However, G-verse is an internet-based company that would not require any raw materials for the production of its services, the company would include the usage of various modelling and animation software along with the usage of game engines and digital tools (Tan, 2021). The next primary activity includes the management of operations, which involves the procedures the organisation constantly uses to deliver the products or services. G-verse can make use of the value chain model for optimal management of the production procedure.
According to Antras and Chor (2022), their primary processes included marketing and services that are used by the G-verse to spike the interest of customers through different features of the value chain model. The value chain model facilitates the G-verse company by identifying the techniques that could be used to make the Gamify software experience better (Hultberg and Pal, 2021). According to Faroukhi et al. (2020), the supporting activities included in the value chain model that could aid the G-verse organisation are infrastructure, human resource management, technology development, and procurement.
The visual representation of a business model is referred to as the business model canvas; it is used to highlight the strategic factors of a business and gives an overview of the workings of the company, its consumers, and revenue streams (Jin et al., 2022). Alexander Osterwalder, a Swiss businessman, first defined the business model canvas. The business model canvas aids the business and other stakeholders to visualise the business and facilitates the evaluation of its building blocks (Das et al., 2021). It facilitates the mapping out of the business plan by identifying the key actors of the business, its activities, the resources used by the business, their relationship with customers and other channels. It also lets businesses develop a new business model and evaluate the business model that exists in the company. Businessmen can use the business model canvas to form business and marketing strategies and drive innovative solutions. It also helps the marketing management team by identifying opportunities in the market and identifying the potential challenges for the company.
The key components of the business model canvas involve several factors, such as customer segment, which means defining the customer population with their age, gender, lifestyle, and socioeconomic status. Taking an example of the G-verse that develops the software Gamify, their customer segment would involve young adults of society belonging to the middle to the upper class of society (Sibalija et al., 2021).
Another component of the business model canvas is the value proposition which is the definition of what the company offers their customers. G-verse provides its customers with gaming software that is secure for young children to play without adult supervision (Mustaniroh et al., 2020).
The third component involved in the business model canvas is the channels of the company, which involves the company identifying various sources for reaching out to its customers. These sources could involve retail stores and internet-based routes like social media and email campaigns (Salwin et al., 2022). G-verse could use social media platforms and in-app advertisements to reach their target customer.
The relationship between the company and its customer is a key component in the business model canvas, and customer relationship refers to the way of interaction a company uses for interacting with its customers.
Figure 1: Gaming Business Model
(Source: Author, 2024)
5.1 Identification and discussion of risk management
Multiple risks are involved in the gaming industry, these include the risks of data theft by cybercriminals.
Risks
Cyberattacks have been increasing in recent years as there has been a spike in fraud and swindlers responsible for data theft (Chigada et al., 2021).
According to Goodstein (2021), companies that are involved in the gaming industries, like the G-verse, often face criticism and backlash from consumers and from the parents of children who invest a lot of their time in software like Gamify for causing gaming addiction.
Other risks that G-verse could face as an organization involving services like gaming software include data breaches that could expose extremely sensitive data and lead to identity theft (Pervej et al., 2021).
According to Bhadouria (2022), hackers could get access to their social media accounts and other important company data could be leaked.
The company could become vulnerable to the attacks of cyber criminals which can cost them a lot of money (Deora and Chudasama, 2021).
The ever-changing regulatory landscape is also one of the challenges that are faced by the gaming industry (Xu et al., 2021).
Gaming industry companies like G-verse also face credit and cultural risks. In the age of social media, the company also faces a risk of being defamed by the users, the spread of negative word-of-mouth can have a deteriorating effect on the company's sales.
Mitigation Strategies
According to Hossain (2024), the company G-verse can protect its data and mitigate these risks using adequate risk assessment tools like encryption, One Trust, private AI and Continuous Data Protection (CDP).
They can improve their security with the identification of roles and the responsibilities that come along with them; by specifying roles, the company would be able to assert its dominance accurately and could find the person responsible for an error without any difficulty (Campolo et al., 2020).
Keeping its employees informed about the company's regulations would also help the company mitigate risks and avoid possible human errors. G-verse can ensure identity security for its users by balancing cybersecurity with the experience of users.
According to Lyu et al. (2024), monitoring the attack surface would aid G-verse in changing its infrastructure; additionally, it would serve as a scale server for G-verse.
G-verse could make use of reliable data resources along with adopting practices that would facilitate the company with its data encryption and backing up its data.
User accounts could also be protected with the help of data loss prevention (DLP), implying storage that provides built-in data protection, and endpoint protection (Schaller, 2022).
G-verse can also imply various measures that could be used to protect the users from gaming addiction; an example of this concept is the role of game developers, who can use technologies in the game that would identify and address any addiction triggers (Parrott et al., 2020).
The developers of Gamify could also adjust the difficulty level in the game or consider adding features that would advertise healthy habits along with promoting taking breaks during a gaming session and avoiding playing for long durations.
Gamify could also include limit-setting that would help parents limit the screen time of teenage children.
The developers of Gamify could collaborate with mental health professionals to innovate a new design that would help prevent addiction to gaming (Ferrari et al., 2020).
A rating system would also help G-verse to make good changes in the Gamify software to gain constructive feedback from the users.
Risk |
Stakeholders |
Resources |
Mitigation Strategy |
Cyberattack |
IT worker |
Data backup |
Data Authentication |
Addiction |
Game developers |
Limiting time strategies |
Time Limitation |
Data Breach |
All employees |
Authentication |
Specification of roles |
User Data Security Issues |
Database Administrator (DBA) |
Encryption |
Data Loss Prevention |
Conclusion
It is identified through the above discussion that this study is based on the new games software development company that planned to launch its new game software in the UK market. The target market is identified as the UK and customers are chosen as the young generation of the nation. To develop the ideas, different key elements of the business are identified, such as services, products, distinctive attributes, core values, scales, location, and stakeholders. A feasibility assessment is conducted by analysing the industry, market, organisation, and finance of the company. A business model canvas and value chain analysis are used to support the study of the proposed business. In the end, some risk factors are identified along with involving the key business opportunities.
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