R & R Case Harvard Case Solution & Analysis

Summary of the case

The case study analyzes the opportunities and risks in the gaming industry that Reiss faced in order to succeed. Reiss a graduate from Harvard University had a great understanding and experience of the market. He worked for a company that made stationary products and after getting excellent knowledge of that market, started his own company in the same industry in 1959. He gets into the business of gaming once he knows about the selling of adult games from the stores that sold stationary products. In the year 1979, he started his own business with the name of R & R. Reiss decided to design and deliver his own trivia game to design and market his own trivia game.In order for him to implement this,researchesneeded to be made on it and required targeting the audience segment. He also provided consultation for manufacturers by using his extensive awareness about the toy and game industry. Bob Reiss suffered several risks and obstacles while developing his concept of the game.

This case also discussed the different mechanisms for getting into the toy and gaming business and also demonstrate the ways by which a knowledgeable entrepreneur can gain control over the essential assets in order to diminish the fixed expenses of business entry. It also describes the role of experience, credibility and contacts in the enlargement of non-business venture in the toy and game industry.

R & R Case Solution

Critical issues

The major problems that entrepreneur faced in this case includes:

Marketing problems

1. Marketing problems that faced by the Riess; in this case it includes pricing, placing and promotion of the games against the competitors. Difficult to create brand image is another that entrepreneur faced in this case.
2. Less advertisement as it is difficult to afford the expensive marketing and promotional campaigns as compared to already established large manufacturers in the industry.
3. The main problem with the game industry is the cost of raising awareness of a game among the customers,with hundreds of new games being released every year globally (Beinisch and Paunov, 2004).
4. The main management problems that the entrepreneur in this industry face includes   identifying the sources for financing the business as well as in the decision making planning in order to  create games that appeal to customers.
5. The most important management problem that an entrepreneur faced is gathering a right management team. As it is very important to find the right working team, train them and retain them for starting up new businesses(Beinisch and Paunov, 2004).
6. The R and R faced the problem of assembling and shipping.
7. To maintain the quality of the game in order to appeal and fulfill the needs of the customers.
8. Selling was the most important issues that entrepreneur suffered.
9. The insufficient stocks or inventory that reflects the company’s inability to meet the growing demand of the market.The bad debt from the customers and the unpaid bills are problems that a new start up may suffer  (Harvard Alexander Berg, 2010).
10. Finance to start up the business,additionally, overcomes the financial threats for production. As in the case the fixed amount of developing the product would range between $30,000 and $50,000 but Reiss needed approximately $300,000 in order to finance the first production run.
11. The increase in the need of financial strength as in terms of billing to retailers were extremely large in the industry.
12. To obtain access to the adequate equity is the most important problem and the hurdle that an entrepreneur faced in order to start up any new business. As mostly new startup firm needs access to capital in order to increase their productivity and growth of their business (William R. Kerr and Ramana Nanda, 2009).
    1. In defining the target audience that is to whom the company is going to sell it and also who will produce and market the game.
    2. Another strategic problem that entrepreneur faced this case includes to identify an interesting theme that would appeal majority of the audience.
    3. How to differentiate itself from the other companies and beat or avoid the competition in the industry.

Management problems

Operational problems

Financial problems

Strategic problems

Other problems

1. The increase in the competition as few large manufacturers were becoming dominant in the industry make difficult for smaller companies to create brand awareness.
2. The gaming has grown as a one of the largest entertainment industry and today’s game industry is connected with high risks and intense competition. The main competitors for a game company is the movie and music industry (Hovard Alexander Berg, 2010).

Decline in the sales of the Trivial Pursuit and other trivia games. In any competitive market the quantity of a product needed changes when the price changes. The sales in the gaming declines as customers have many selections (games) to shift since competition is high (Hovard Alexander Berg, 2010)...................

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