BrainTrain_FeasibilityAnalysis

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Brain Train Analysis
Michael Chadwick
Elizabeth Kilmer
Michael Roca
Management 404
Dr. Wright
December 4th
, 2014

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Table of Contents
Executive Summary ……………………………………………………………………… 5
Part I – Client Profile
1.1 Company Overview …………………………………………………………………... 7
1.2 Key Facts …………………………………………………………………………….... 7
1.3 Business Description ………………………………………………………………….. 7
1.4 Company History………………………………………………………………….…... 11
1.5 Product ..…………….…………………………………………………………………. 11
1.6 Competitors…………………………………………………………………………..... 11
1.7 Key Employee………………………………………………………………………..… 12
1.8 Key Employee Biography…………………………………………………………...… 12
Part II - Situational Analysis
Chapter 2 – Environmental Factors
2.1 Economic…………………..………………………………………………………….... 15
2.2 Social…………………………………………………………………………………..... 15
2.3 Political……………………………….……………………………………………….... 16
2.4 Technological……………………………………………………………….………...... 17
2.5 Ecological…………………………………………………………………..………….... 17
Chapter 3 – Industry Analysis
3.1 Porter’s Five Forces………………………………………………….…………………. 18
3.2 Competitive Rivalry within the Industry……………………………………….…….. 20
3.2.1 Threat of New Entrants……………..……………………………………………………........ 20
3.2.2 Threat of Substitutes…………………………..………………………………………….……. 20
3.2.3 Bargaining Power of Buyers………………………………………………………………….. 21

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3.2.4 Bargaining Power of Supplies………………………………………………………….......... 21
3.3 Individual Component Analysis & Average Industry Evaluation…………...……… 22
3.4 Competitive Benchmarking………………………………………………...………….. 26
3.4.1 Best Price ……….……………………………………….……………………………………… 28
3.4.2 Ways to Purchase ………………………………………………………………….………….. 28
3.4.3 Quality ………………………………………………………………………………………..… 28
3.4.4 Ease of Use…………………………………………………………………………….……..... 28
3.5 Detailed Description of Competition……………………………………………….... 29
3.6 Competitive Benchmarking Conclusion……………………………………….....…. 31
3.7 Value Chain Analysis…………………………………………………………………. 32
Part III – Feasible Analysis
4.1 Overview………………………………………………………………………………. 34
4.2 Interview with Salamander Games………………………………………………….. 35
4.3 Western Carolina University Professor Survey……………………………….......... 41
4.3.1 Western Carolina University Professor Survey Results………….……………………… 43
4.4 Education Major Survey…………………………………………………………..…. 53
4.4.1 Education Major Survey Results…………………………………………………………… 55
Conclusion………………………………………………………………………………… 65
Recommendations………………………………………………………………………… 65
Regards……………………………………………………………………………………. 65
Bibliography………………………………………………………………………………. 66

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Appendices………………………………………………………………………………… 67
Appendix 1: IBIS World Industry Report……………………………………………………….... 67
Appendix 2: Interview with Salamander Games…………………………………………………. 131
Appendix 3: Survey Introduction Email for Professors…………………………………………. 142
Appendix 4: Survey Introduction Email for Education Majors………………………….…….. 143
Appendix 5: Western Carolina University Professor Survey…………………………….…….. 144
Appendix 6: Western Carolina University Professor Survey Results…………………………. 146
Appendix 7: Western Carolina University Education Major Survey…………………….……. 158
Appendix 8: Western Carolina University Education Major Survey Results…………..…….. 160
Appendix 9: Patent Information…………………………………………………………………..… 170

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Executive Summary
Brain Train is an educational learning game that incorporates musical elements with critical thinking
methods for individuals of all ages. Although Brain Train is currently an idea, Mr. Waldrop, creator and
visionary, wishes to create Brain Train and target it as an educational game to sell to school systems. By
obtaining patents and copyrights, Mr. Waldrop will be able to make advancements towards the final
creation of Brain Train.
There are five environmental factors that impact a business. There are economic impacts, social impacts,
political impacts, technological impacts, and ecological impacts on the business. It is important that Mr.
Waldrop is aware of the environmental factors that impact the business in order to understand and to have
a better way of predicting of the industry’s trends in the future. Being aware of the specific environmental
factors will give Mr. Waldrop an advantage in the competitive industry once Brain Train is completed.
The Five Force Model was created by Michael Porter to evaluate the favorability of a market or industry.
The five forces that are included in the model are: bargaining power of buyers, bargaining power of
suppliers, threats of new entrants, threats of substitutes, and competitive rivalry within a specific industry.
Based upon Porter’s Five Force Analysis, the board game industry/ game industry is in a relatively
declining market. With the rise of technology, board games and non-technologically based games will be
pushed out the industry since majority of consumers use technology based games, such as mobile
applications on smartphones. The industry is difficult for new entrants to be successful unless the idea,
patent, and product rights are purchased by a previously existing company such as Hasbro.
For the competitive benchmarking section of the situational analysis, our team can conclude that Brain
Train will be in direct competition with its main competitors. The fact that Brain Train is not
manufactured and out on the market clearly makes it difficult to be able to receive an official rating.

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Although Brain Train is not on actual product yet, it does have competitors that Mr. Waldrop can evaluate
to receive the most beneficial information when creating Brain Train.
Recommendations provided to Brain Train are based on market research, internal analysis of the
organization, and surveys provided to Western Carolina University professors and Western Carolina
University students pursuing a degree in education. The recommendation for Brain Train is to review all
the data from the surveys provided and get a better understanding of how professors and education majors
at Western Carolina University feel about educational games in a classroom setting. Upon reviewing the
results, Mr. Waldrop will have to rearrange the game to better suit the curriculum found in school systems.
For Brain Train to succeed, all information and data found within this report needs to be taken into
consideration to allow Mr. Waldrop to have a successful product.

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1.1 Company Overview
Brain Train is a game that is in process of becoming a full functioning company located in Webster, North
Carolina. The idea of Brain Train was thought of by sole proprietor Dave Waldrop. Currently, the
company does not have any patents or licenses filed with the United States Patent and Trademark Office.
Brain Train hopes to enhance both reasoning and listing skills while providing an entertaining and fun
manner to a broad audience. Mr. Waldrop’s main objective for Brain Train is to sell his start up for a
certain percent of the company’s value.
1.2 Key Facts
Mailing Address P.O Box 122,
Webster, North Carolina 28788
Phone Number 828.586.6837
Email dewaldrop@frontier.net
Employees 1 developer and visionary
Industry Toy, Doll, Game Manufacturing
1.3 Business Description
The following business description is from the creator and visionary of Brain Train, Dave Waldrop:

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“The purpose of this game is to promote the development of thinking and reasoning processes. It has been
designed to make use of the power of music and song lyrics. By engaging students in this activity, the
desired outcome is to have observed improvement in the following areas of human growth:
1. Abstract reasoning
2. Verbal reasoning
3. Oral communication
4. Listening
5. Critical thinking
6. Taking turns/sharing
7. Respecting others
8. Judging thoughts
9. Presenting and analyzing ideas
10. Resolving conflict appropriately
The game works optimally with five players. It also lends itself to five pairs or five trios.
Getting started
1. Select an appropriate song for the group (i.e. age, level of education, etc.).

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2. Seat players in a circle.
3. Provide pencils and note cards.
4. Provide copies of rules.
5. Select a judge for reviewing participants challenge questions (students need to serve as assistant judges
at first).
6. Provide ten game chips to each player.
Procedure
1. Play the song one time.
2. Ask one student to begin the game with a question (a question, not a sentence or request, is required).
3. Questions must relate to words only—not instruments or song structure, etc.
4. The starter (A) begins the game by asking the player or group (B) to the left. The starter and respondent
player or group are the only people who are allowed to talk when the question is being asked and
responded to.
5. When (A) and (B) have completed their interchange (B) then has the opportunity to ask player or group
(C) a question.
6. This pairing method continues around to (A) in a clockwise direction. After (A) has answered the
question, player or group (A) asks the player or group to the right (D) a question. The questioning
continues in a counter-clockwise direction until (B) has asked (A) a question and been responded to
according to the rules of the game.
Rules

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1. When a player asks a question and a correct answer is provided, the player asking the question must be
prepared to give the respondent a chip. However, the asker may choose to reply that the response is
incorrect. (Note A): If respondent chooses not to challenge the decision of the asker then the respondent
must give the asker a chip. (Note B): If the respondent requests a challenge to the asker`s decision, the
judge, asker, and respondent leave the playing room and settle the challenge in this manner:
Step 1. The judge asks the asker to repeat the exact question
Step 2. The judge asks the respondent to repeat the exact answer.
Step3. The judge asks the asker to prove the respondent wrong.
If the asker proves the respondent wrong the judge asks the respondent to give the asker a chip. If the
asker fails to prove the respondent wrong and the respondent is actually wrong, the judge declares a draw.
If the asker fails to prove the respondent wrong and the respondent is right, the judge asks the asker to
give the respondent a chip.
2. If a player fails to ask a question in turn, he or she must give the respondent a chip.
3. If an asker uses any prompt besides a question, the respondent may provide an appropriate answer or
answer nonsensical.
If the asker deems the response correct, the asker gives the respondent a chip. If the asker deems the
response is incorrect, the respondent must decide to give a chip or challenge. If a challenge is issued when
a prompt, other than a question was used, the asker cannot win. The respondent can win by providing an
accurate response. The respondent will not lose in this situation by responding in a nonsensical manner.
This challenge is settled outside the playing room, as are all other challenges.
Summary and suggestions
In the elementary level of play described above, players may ask any type of questions they choose. This,
of course, includes using other players` questions. This makes for a great deal of fun and allows each
player to stay within his or her own type of thinking and reasoning.

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This game can be transformed into a powerful teaching tool by moving up to higher levels of play. An
example is to develop a deck of cards with various questions printed on them (who, what, when, where,
why, how, how much, how many, to what extent, sequence, cause/effect). Another way Brain Train could
be transformed would be to incorporate a deck of cards with parts of speech. Players in this higher level of
play must draw a prompt card and generate an appropriate question based on the prompt type. If a prompt
type is not in the song, the player would then be free to develop any type of question. However, failure to
use prompt type, if in the song, results in automatically losing in the case of a challenge.
It is highly recommended that each game consist of five rounds of play as described above. Using that
format allows each player the equal opportunity to start a round. At higher levels of play, starting a round
carries with it the right to declare the rules for that round.
It is important for teachers to remember that no instruction is to take place during this game. It is also
important to realize that songs are the ideal medium to use to introduce students to this method of
learning. However, the method may be adapted to other material such as news articles, videos, and blogs
with careful thought and planning.
1.4 Company History
Mr. Waldrop first started playing Brain Train after bringing it to a classroom while working in the Jackson
County Public School System. Mr. Waldrop noticed that children of all ages enjoyed the game, alongside
with also realizing that their active listening and deductive reasoning began to increase. Mr. Waldrop
proceeded to pursue the creation of the Brain Train. Due to the September 11th
attacks, Mr. Waldrop had
to stop all work on the project due to the economic stress of the United States. Within the past five years,
Mr. Waldrop started to reinvest interest in Brain Train and has begun to move from the creative process to
the production stages of the game.
1.5 Product

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Mr. Waldrop hopes to create a multiplatform game, this means it will be both a board game and a mobile
application in order to utilize the full potential of Brain Train. Mr. Waldrop wants to create the card game
version of Brain Train to offer the game to public and private educational institutions as a test run to see
the success and popularity of the game. If the card game proves popular, Mr. Waldrop would like to create
an application that is accessible from both Android and Apple product mobile platforms. This allows
players to play locally or internationally with fans who have similar taste in music.
1.6 Competitors
Brain Train currently has no local competitors within the Western North Carolina area. After expanding
the search to national and international music applications, there is one online application that is relatively
close to Brain Train, but does not provide the in-depth questions and critical thinking. The online and
mobile application is Guess the Song and has over three million active users in the United States, with a
quarter of a million reviews. Guess the Song is only available to play as a solo player rather than with
other players on the site. Besides only solo playing, Guess the Song only allows players to guess the title
of the song that is being played.
1.7 Key Employee
Employee: Role:
Dave Waldrop Founder and Visionary
1.8 Key Employee Biography
Dave Waldrop is currently a retired Jackson County Public School employee, as well as a veteran of the
United States Navy. While working for the Jackson County Public School System, Mr. Waldrop was

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employed as a middle school counselor. Mr. Waldrop has a strong passion for music, song writing,
philosophy, and equality while he creates Brain Train.
Situational Analysis Overview
The following is an initial analysis of the commercial feasibility of a new product concept created by Dave
Waldrop. The product is an educational game that includes music, critical thinking and learning about
others. To understand the commercial feasibility of Mr. Waldrop’s concept, one must understand both the
environmental and market factors that may affect the product. In the board game industry, there are
countless products that had potential for success but ultimately ended up failing due to the creators or
investors not understanding the market. Another reason a product could potentially fail is due to outside
factors that caused the downfall of the product.

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Mr. Waldrop worked as a public school counselor which allowed him to spend time with students of
different ages. This gave Mr. Waldrop the ability to develop a game that children and adults of all ages
enjoyed. During this time, Mr. Waldrop thought of the idea for a product to allow children and adults to
use critical thinking methods while enjoying time spent together playing a game. The idea consists of five
or more players listening to a song, then those players are to ask the other players questions about the song
with the end goal of figuring out certain meanings or parts. The players can also figure out if one part of
the song was directed towards something other than the rest of the verses. Mr. Waldrop mentioned
potentially turning the game into a mobile application, which would allow the game to be played
anywhere there is cell reception or Wi-Fi, allowing players from all over the world to connect. Since Mr.
Waldrop’s product is in the beginning ideal stages, the analysis that follows has information about what
could happen if the product was created.
The report consists of four main sections that will allow Mr. Waldrop to understand the market the product
would be a part of while discussing positives and negatives of the production of the product. The first
section is the environmental analysis, which includes a review of economic, social, political,
technological, and ecological factors. These factors were examined for potential impact on Mr. Waldrop’s
product. The information within this section can ensure that Mr. Waldrop has the knowledge of outside
factors that could be faced during the creation of Brain Train.
The section following the environmental analysis is the industry and market analysis. Within this section,
Mr. Waldrop will be able to see trends and forces related to the toy, doll, and game manufacturing
industry. The information in this section will allow Mr. Waldrop to see if market conditions are favorable
or unfavorable for Brain Train.
The competitive benchmarking section follows the industry and market analysis. A competitive analysis is
a comparison of possible substitute products that Mr. Waldrop can face when entering the toy, doll, and
game market. Since this section is a comparison of potential substitutes, Mr. Waldrop will have an
understanding of where the product stands in term of price, quality, and other factors compared to various
competitors, who offer similar applications and games like Brain Train.

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The final section of the analysis is the value chain of Mr. Waldrop’s product. The value chain analysis is
how Mr. Waldrop’s product will be different from the competition. Since the product is not currently in
production, the value chain analysis provided for Mr. Waldrop consists of information about what can be
done when the product is put on the market.
The situational analysis will give Mr. Waldrop the knowledge to know outside factors, market analysis,
and information on existing products in the toy, doll, and game manufacturing industry. The information
in the situational analysis will provide a better understanding of the direction Mr. Waldrop should go in
with the product, as well as if the product will be successful.
Environmental Analysis
2.1 Economic Factors
During the past five years, the toy, doll and game manufacturing industry has fallen into negative revenue
growth at a rate of -0.3% per year. IBIS World states that the industry will see a positive revenue growth
of 0.7% per year over the next five years, 2015-2020. Revenue is forecasted to decline 2.1% in 2014 but

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will then increase by 0.7% the next five years to reach $2.4 billion. 1
One of the largest factors affecting
the toy, doll and game manufacturing industry is that labor cost rising in China. With the increase in labor
costs, an emerging trend of “reshoring” is occurring. Reshoring is the act of a company that relocates
manufacturing operations back to the United States, where there are lower compliance and transportation
costs, and a greater ability to respond to changes in the market.2
Currently, the increase of labor costs have
driven 500 U.S companies to reshore, which means that about 60% of the work that was previously being
produced in China has now been brought back to the United States. Since the one-child policy in China
has been in effect, the workforce has dropped by about 3.5 million workers per year3
. Workers are less
likely to work in inhumane factories that treat their workers poorly, this has resulted in employee
dissatisfaction which drives to employee strikes and an extremely high turnover rate.4
Reshoring will help
the manufacturing industry, as well as finding investors to make new products since they will be able to
communicate with the manufacturing company. This allows them to adapt and change the product rapidly
and in a timelier manner as the market changes
2.2 Social Factors
Over the past four years, smartphone ownership has grown increasingly popular in the United States. In
2010, there were a reported 62.6 million active smartphone users nationwide; currently, the reported
number of smartphone users is 163.9 million. Consumer analysis sees no end in the smartphones
popularity, due to the fact the number of smartphone users could potentially hit 220 million by 2018 in the
United States. 5
Worldwide smartphone ownership and usage skyrocketed tremendously, with 1.43 billion
users worldwide, in 2014. The usage is then expected to increase to 2.50 billion smartphone owners.6
The
below graph shows the increase of smartphone ownership and usage from 2012 to 2017.
1
http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=894
2
http://en.wiktionary.org/wiki/reshoring
3
http://www.industryweek.com/ask-expert-reshoring/how-will-chinas-labor-turmoil-and-rising-wages-impact-reshoring
4
http://www.industryweek.com/ask-expert-reshoring/how-will-chinas-labor-turmoil-and-rising-wages-impact-reshoring
5
http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/
6
http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536

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Smartphone usage has increased worldwide due to the fact smartphones are relatively inexpensive to make
when compared to their counterpart, the computer.7
Smartphones are not the only item that is popular and
on the rise. Social media sites have become a huge sensation. Approximately 1.28 billion people use
Facebook on an active basis, with 1.01 billion of those users signing in via their smartphones. With this
increase, mobile applications are slowly replacing board games8
.
2.3 Political Factors
Political factors are constraining factors which include taxation and pricing policies that affect the
company. The term “Brain Train” doesn’t have a copyright nor does the game itself have a patent.
According to the analysis done by Lambert and Lambert for Mr. Waldrop’s product, only two percent of
patents are successful.9
Political factors may change over the patents lifetime, therefore Mr. Waldrop will
need to be informed on any current and future laws that may influence and affect the products
development during its lifetime.
7
http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536
8
https://zephoria.com/social-media/top-15-valuable-facebook-statistics/
9
Invention/Technology Evaluation Results from Lambert & Lambert

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2.4 Technological Factors
Mr. Waldrop is wanting to potentially create a mobile application for Brain Train. Since technology based
games are increasing, if Mr. Waldrop decides to create the mobile application, there would need to be an
understanding of the advantages and disadvantages such as mobile applications. Online capabilities would
be the next step of technological advancement for this idea. This would help advertise the game through a
whole new market rather than in brick and mortar stores. If Brain Train was an online game, people of all
nationalities could be involved into the game and play globally. This would enhance the communication
aspect of the game and in turn would be easier in terms of educational value. Technology is growing,
therefore Mr. Waldrop’s product would benefit from researching technological innovations and
advancements related to the product.
2.5 Ecological Factors
Through research, ecological factors or risks related to Mr. Waldrop’s product have not been found. If Mr.
Waldrop’s product goes to a mobile application rather than a physical game, there will be no ecological
factors that will affect the final product. If Mr. Waldrop does not go with a technology based application
for Brain Train, there would be ecological factors like the cost of materials being used for the board game,
paper, ink, etc. Depending on the direction Mr. Waldrop goes will be the deciding factor if there are any
ecological factors that need to be taken into consideration during the creation of Brain Train.

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Industry Analysis
3.1 Porter’s Five Forces
When a company is trying to figure out what direction they want to take a product in, it is important to
pinpoint which industry the product would prove and preform the most successful in. A proven effective
method of doing so is using the Porter’s Five Forces to conduct an industry and market analysis. Using the
Porter’s Five Forces Analysis allows a company to measure the bargaining power of suppliers and
customers, the threats of new entries to the market, any products that can be substitutes, and the
competitive rivalry within the company’s industry.
For Mr. Waldrop, conducting a Porter’s Five Forces analysis is of the upmost importance since Brain
Train is in the beginning stages. Due to Mr. Waldrop’s product being in this stage, it is important to fully
understand the industry Brain Train will be implemented. The more knowledge and information gained
about the toy, doll, and game manufacturing industry, the more easily informed well educated choices can
be made. To make these decisions, each key factor regarding the toy, doll and game manufacturing
industry is scored on a scale one through ten, with one being weak in the area and ten being strong. After
figuring out the necessary factors scores, the scores will be added and averaged to see what the proposed
product’s market likelihood score, which has a correlation of how likely the product is to succeed.

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Below is a graph of some of the life stages of the market.
According to the graph, the toy, doll, and game manufacturing industry falls into the “decline” segment in
the above graph. This “decline” means that there is a shrinking economic importance in the terms of items
and various goods produced within the market. A product within this field is of decreasing importance in
today’s economy, making this a barrier to entry for Mr. Waldrop.

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3.2 Competitive Rivalry within the Industry
There are 527 businesses currently listed as manufactures in the in the toy, doll, and game manufacturing
industry. According to IBIS World, competition within the industry is high, and the trend is staying at a
steady rate.10
There are currently many different types of toys, dolls, and games including board games,
electronic and non-electronic games, card games, and many others. Since there is a large variety of toys
and games that exist for all ages, it is difficult to narrow down every game that has a separate element of
music and critical thinking. Although narrowing down the games that include both of those elements,
music and critical thinking, is fairly easy, since Brain Train is centered on musical elements with critical
thinking.
3.2.1 Threat of New Entrants
The toy, doll, and game manufacturing industry is saturated with existing and established companies while
the number of participants seems to be steady. The vast majority of the market share is controlled by
stores, such as Walmart, Target, Toys R Us, and Kmart. This acts as a natural deterrent to new board
games and companies. The reason for this is that a large portion of these retailers shelf space is occupied
by products manufactured by incumbent players. As a result, new entrants will find it difficult to compete
against the industry’s largest players in gaining new supply contracts, this will ultimately cause poor sales.
3.2.2 Threats of Substitutes
As stated previously, the board game industry is already supersaturated with competition. In fact, there
are over 527 companies alone that associate with selling board games. According to IBIS World, “The
most significant barrier to entry is the amount of time, research and capital required to establish a brand,
10
http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=894#BOC

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along with the complexities involved in developing unique product designs, and protecting intellectual
property rights and trademarks. The high-cost and long-term nature of establishing brand reputation is,
hence, the largest barrier to entry. Already established brands such as Hasbro and Mattel have respective
product offerings and new entrants will be compelled to invest money and time to persuade consumers to
shift away from recognizable brands.”11
3.2.3 Bargaining Power of Buyers
Toys, dolls, and games in the United States are used on a daily basis, especially by children. This presents
a large group of potential customers that could use Mr. Waldrop’s product. As the United States
population rises, more people are having children. There are currently four million babies born in the
United States within a year.12
However with the rise of technology, many people have switched over from
board games and physical toys to technology-based entertainment by the use of computers and cell
phones. The average age for children to receive their first cell phone is age 11. There are 77% of children
ages 12-17 who have a cell phone.13
Since the majority of children and adults have a technological device,
the need for a card game or physical product such as Mr. Waldrop’s will decrease unless a mobile
application is created.
3.2.4 Bargaining Power of Supplies
There is no surprise that there is a large variety of competitors in the toy, doll, and game manufacturing
market. Although there are many competitors, this is a positive aspect because there are also many
suppliers to produce these products. In return this will make the development stages easier for Mr.
Waldrop.
11
http://clients1.ibisworld.com/reports/us/industry/competitivelandscape.aspx?entid=894#BOC
12
http://www.nichd.nih.gov/health/topics/infantcare/conditioninfo/Pages/born.aspx
13
https://faithandsafety.org/cell-phones-and-kids

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3.3 Individual Component Analysis & Average Industry Evaluation
Few Competitors
There are not many companies in the toy, doll, and game manufacturing industry that produces a game
that involves both music and critical thinking. Since there are only a limited number of companies that
produce these types of games, most games are either musically inclined or involve critical thinking.
Therefore, a score of 7 has been assigned to this component.
Quality-Based Competition
Many markets have brand loyalty as a high importance factor; however, this does not seem to be the case
in the toy, doll, and game manufacturing industry. Trends show that consumers in the toy, doll, and game
manufacturing market do not buy based on brand name but what the product has to offer.14
This is an
advantage for Mr. Waldrop since his product is in the beginning stages, and Mr. Waldrop currently does
not have the financials or a company to support branding his product. If Mr. Waldrop can produce a
product that is of high quality and offer great value to the consumer. The likelihood of a larger company
like Hasbro or an individual investor purchasing his intellectual property rights will improve greatly. For
that reason, a score of 6 was assigned to this component.
14
http://www.emeraldinsight.com/doi/pdfplus/10.1108/10610421011018347

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Barriers to Entry
The toy, doll, and game manufacturing market has several barriers to entry. A comprehensive barriers to
entry checklist is shown below.
The board game industry has many barriers to entry that can prevent new companies and products from
emerging. The market has a vast amount of competition and technology has also become a major threat to
the industry. Mr. Waldrop should start getting the idea patented before he continued with the creation of
the product. Due to the high risk of the board game industry, a score of 4 was assigned to this component.
Number of Entrants

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The expectations of new entrants is low for the reason stated above, the game market has barriers that
make it difficult for individuals who are starting out in the toy, doll, and game manufacturing industry. A
score of 3 was assigned to this component.
Number of Substitutes
There are over 527 companies alone that associate with selling board games. This allows for consumers to
have a variety of games to choose from when making a purchase. Due to having a great amount of
substitutes, individuals trying to start in the toy, doll, and game manufacturing industry need to take into
effect the risk of having the large amount of substitutes. A score of 2 has been assigned to this component.
Number of Customers
With the rise of cell phone usage by children ages 11-17, many game uses have switched to mobile
applications. The use of board games has slowly moved out of the consumer’s eye, while it has moved to
the use of technology based games. A score of 4 has been assigned to this component.
Fragmented Customers
As mentioned above, the majority of consumers have a technological device that is use for entertainment.
This has a major impact on the toy, doll, and game industry is that most people who use these products
range in ages 4 to 12. This represents a very refined and fragmented niche for Mr. Waldrop’s product. A
score of 2 has been assigned to this component.
Number of Suppliers
The materials used to create games are primarily produced by a large variety of manufacturers. A vast
amount of these companies solely manufacture toy and game products, allowing for businesses within the
industry to have a great amount of suppliers to choose from. A score of 7 was assigned to this component.

Page | 26
PORTER’S FIVE MARKET ANALYSIS
COMPANY NAME: Dave Waldrop – Brain Train
RATING 10-1 (FAVORABLE TO UNFAVORABLE)
COMPETITORS BASE 7
QUALITY BASED COMPETITION 6
BARRIERS TO ENTRY 4
NUMBER OF ENTRANTS 3
NUMBER OF SUBSTITUTES 2
NUMBER OF CUSTOMERS 4
FRAGMENTED CUSTOMERS 2
NUMBER OF SUPPLIERS 7
TOTAL SCORE 35
AVERAGE 4.375

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Overall, Mr. Waldrop’s product scores 4.375 out of ten in terms of its feasibility in the toy, doll, and game
manufacturing market. These numbers are not the most favorable but many key aspects must be taken into
consideration. Mr. Waldrop is dealing with a product that is in the beginning stages of development. Since
the product is in early stages, it allows Mr. Waldrop to shape a business strategy that focuses on the
industry and market strengths while weaknesses can be worked out. This allows for the product to have
potential if an investor or company decides the product is worth the risk in the competitive market such as
the toy, doll, and game manufacturing industry.
Although Mr. Waldrop’s product is in the beginning stages, it does not mean that the weaknesses can be
ignored. The market has such a high volume of competitors; the product is different, no game offers music
and critical thinking. His product needs value and quality.
3.4 Competitive Benchmarking
In this section, we will look at the competitive aspects within the toy, doll, and game manufacturing
industry. Critical Success Factors in each industry are the main subjects in which a business must thrive in
order to be considered successful within the industry. The critical success factors in the specific industry
of toy, doll, and game manufacturing include: best prices, best service, ways to purchase, quality, and ease
of use.
The table on the following page compares Brain Train to its competitors. The critical success factors are
graded for each business. Each business’ score is averaged to reach the overall score of the business. Brain
Train is in direct and close competition to its competitors within the industry. This information shows
where Brain Train should be placed in comparison with similar products.

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Table 1:
Grading Scale: 1 Low, 5 High
Critical Success 1. PRODUCT NAME: 2. PRODUCT NAME: 3. PRODUCT NAME:
Factors (1-5) Brain Train Guess The Song BEAT MP3
Best Prices Undetermined 5 3
Ways to Purchase Undetermined 5 5
Quality Undetermined 4 5
Ease of Use Undetermined 4 3
Total ----- 18 16
AVERAGE ----- 4.5 4
STRENGTH Can be used in schools Free to play Fast and exciting

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gameplay
Will be on IPhone &
Android
Current Songs Multiple Artist
Thought Provoking 10 Million downloads,
3 Million Users in the
United States
Strong multiplayer
presence
WEAKNESS No Patent In app purchases
prohibit users from
playing if they are not
made
Multiple Products
3.4.1 Best Prices
Prices vary within the toy, doll, and game manufacturing industry. Brain Train competitors offer lower
prices for mobile applications while another competitor offers a higher cost. This is done to compensate
for the higher production cost for individual mobile applications, this includes licensing fees for songs,
and better layouts alongside animations. Since Brain Train is currently not a manufactured product, there
is no way to give an accurate rating for price. Although Brain Train does not have a physical product in
the market, the product can be aimed to be priced within its competitor’s price range.
3.4.2 Ways to Purchase

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Purchasing within the toy, doll and game manufacturing industry varies depending on the product type. If
the product is technology based and a mobile application, purchasing will be tremendously easier than
purchasing within a brick and mortar store. Brain Train’s competitors are both mobile applications making
it fairly easy to purchase. Users can purchase with their credit cards over Wi-Fi via app stores which are
safe and secure. Downloads would only takes a few seconds to be added to a consumers device. If Brain
Train is created into a mobile application, purchasing would be simple and hassle free. It would also allow
Brain Train to be in direct completion with its competitors.
3.4.3 Quality
The quality of a game can make or break the product. Since Brain Train is currently still in the visionary
phase, research of the competition would be beneficial. The competition has great quality ratings at 4 and
5. These ratings show that the competition is producing high-end quality mobile applications. Brain Train
should see the quality that is needed to be produced to stay with its competition. A team of coders would
be needed in order to procure an application of high quality
3.4.4 Ease of Use
Since the toy, doll, and game manufacturing targets a large group of individuals varying in age, ease of
use of a product is highly important. With Brain Train still in the beginning stages and without a clear
indication if it will be technology based, Mr. Waldrop will be able to customize the ease of use based on
the competitions. Brain Train’s competitors have good ratings for ease of use and will need to be
considered with the creation of Brain Train.
3.5 Detailed Description of Competitors
Below is a detailed description of Brain Train’s competitors. This will allow Mr. Waldrop to have a better
understanding of the competition alongside what is needed to produce a high quality application.
Guess that Song is a well-established mobile application game, in which users compete for top scores in
guessing songs, lyrics, and other musical facts. Currently, the application states it has over ten million

Page | 31
downloads worldwide, with three million being in America. The game is free to purchase, but in order to
compete with other users, one must download song packs via an in game application purchase. Guess the
Song is offered on both iPhone and Android platforms, which means it is available to a majority of
smartphone users. The game is very well coded, meaning it does not run down the user’s battery on their
phone, and also has an easy to use contact page in case the players have problems. The developer can
easily contact the players.
Figure 1- Guess the Song Example
The above picture on the left illustrates that Guess the Song has very high production value. It is apparent
that a great deal of effort was put behind selecting the color schemes, texts and graphics. It also allows for
potential users to view what genres of music are available before one purchases the product. The above
picture on the right shows what Guess the Song looks like in the Google Play Store. It provides the
customer with a very brief overview of the application. One key point it highlights is, 10 million

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downloads with an average of 4.3 out of 5 stars by over 20K users. It further goes on to elaborate and tell
the customer that there are “thousands of hits to guess”15
.
BEAT MP3 is an application created by Creapptive Co., LTD. It currently has one million downloads
worldwide, with an average user rating of 4.0 on the Google Play Store. The object of the game is to listen
to songs and attempt to match the beat with various buttons. It offers competitive multiplayer games
where users compete for the best scores, highest streaks, and longest time without error. The game is free
to purchase, but users must also pay to unlock new songs. One main issue that was brought up in several
reviews was the fact some purchases would not show up on user’s accounts, or the game would crash in
the middle of the song. This is due to bad programming and coding. Unlike Guess the Song, there is not a
lot of production value placed in this game, instead BEAT MP3 is very simple and straightforward16
.
BEAT MP3 is strictly a music based game with no critical thinking involved.
Figure 2- BEAT MP3 Example
15
Google Play Store, “Guess The Song”
16
Google Play Store, “BEAT MP3”

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The above left picture shows BEAT MP3 in the Google Play Store. It provides customers with a video
above the title that allows the customer to see the game in action. This is useful due to the fact users may
simply watch the video rather than read over the in-depth description of the product. The above right
picture shows a downside of the application. It is dark in color, it is clear that not a lot of thought went into
color schemes or layouts.
3.6 Competitive Benchmarking Conclusion
After scoring Brain Train and its competitors in the competitive benchmarking table shown in Table 1, we
can conclude that Brain Train is in direct competition with its main competitors. There are some major
factors within the industry that Brain Train is not as prosperous in compared to its competitors, however,
there is also some factors that Brain Train surpasses or equals its competitors. Since Brain Train has not
officially been manufactured, it makes it difficult to get a true rating for the competitive benchmarking.
Once Brain Train has been created, Mr. Waldrop will be able to get achieve a better understanding of the
ratings for the product.

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3.7 Value Chain Analysis
The purpose of a value chain analysis is to take an in-depth look at the company to evaluate the success
factors. A value chain identifies the specific process or products that create value within the business.
Since Mr. Waldrop’s product is in the beginning stages, there is no physical product to evaluate with a
value chain analysis. Even though Mr. Waldrop has not started production on his product, the value chain
analysis can still be used to evaluate Brain Train. Since there is no concrete product produced yet, Mr.
Waldrop can implement hypotheticals to better suite his needs. The value chain analysis can look like the
diagram below.17
Mr. Waldrop would greatly benefit by protecting Brain Train with a patent. The start of getting a patent
would allow Mr. Waldrop to have time to create the product and understand the strengths and weaknesses
without another company taking the idea. Since Mr. Waldrop has a product already envisioned, the design
can be modeled and perfected during the beginning steps.
Once patents, copyrights, and designs are addressed, Mr. Waldrop can choose producers and
manufacturers for the product. Even though, the product is not physically created, Mr. Waldrop will be
able to figure out the companies he wants to work with to create and manufacture his product. Along with
17
http://www.vertexips.com/information/articles/questions.html

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deciding how Mr. Waldrop would build the product, the thought process for sales channels, customer
base, and brand recognition can begin.
Since the creation of the product is in the beginning stages, the step of wholesalers and distributors can be
substituted with advertising and promotion. Alongside that, Mr. Waldrop will also learn about the market.
Ways to promote and advertise the product will take time to figure out because knowledge of the market
will need to be understood. These aspects can be thought about with a similar thought process of where
the product will be sold. It takes time to get a product to a retailer to put in their business. Mr. Waldrop
would need to do a test run in various public and private schools to see how well Brain Train is received.
Overall, the findings in this analysis show that Mr. Waldrop will face some struggles but there is a chance
for success with the product and the potential chance for failure. Until the toy, doll, and game
manufacturing industry has an increase in growth instead of a decline, it will be difficult to pinpoint how it
will help or hurt the product Mr. Waldrop is trying to create in the next five years.
There are positive and negative factors facing Mr. Waldrop and his idea. For there to be success, Mr.
Waldrop needs to take advantage of all the strengths shown in the above analysis and find ways to turn
weaknesses into strengths.

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Feasibility Analysis
4.1 Overview
Throughout our team’s work with Brain Train, Mr. Waldrop wanted to gain further knowledge about the
potential success of Brain Train. To help gain more knowledge for Mr. Waldrop in the creation of Brain
Train, our team created a survey that provided questions about how professors at Western Carolina
University and students who are obtaining education degrees thought how educational games within the
classroom. Since Mr. Waldrop wanted to target the school systems as the first target market, our team
ideally created the survey to allow first hand data to deliver to Mr. Waldrop. Along with creating the
survey, our team contacted Chad Scott and Josh Fry, the creators of Salamander Games to gather inside
knowledge of the gaming industry. By having this interview with Mr. Scott and Mr. Fry, our team was
able to gain valuable information from professionals in the gaming industry to provide to our client. Our
team asked Mr. Scott and Mr. Fry twenty-six questions ranging from their background in the industry,
advice to Mr. Waldrop for the gaming industry, and advantages and disadvantages of Brain Train. The
most important questions and answers can be found below while the rest of the questions will be located in
Appendix 2.

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4.2 Interview with Salamander Games
Our team has decided the top eight questions and answers from the interview with Mr. Scott and Mr. Fry
to elaborate to Mr. Waldrop. The complete interview will be available for review in the appendix. These
eight questions will be a great attribute to Mr. Waldrop and the creation of Brain Train. The below
questions are directly from the interview with Mr. Scott and Mr. Fry.
Q. Is getting into the gaming industry recommended?
Mr. Scott – It depends on what your goals are. The gaming industry is a very high risk, low reward
industry. As far as a hobby game goes, most games don’t go past their first print run of about 1500 units.
If you are looking to get rich making games, it can be done, but you are going to have to have a
blockbuster game, most are small successes. If you want to do it for the experience or just enjoy it as a
hobby then you should definitely join the industry.
Mr. Fry - That is a hard question to answer directly. The gaming industry (video AND analog) is a hard
one to break into. Video gaming usually involves getting a very technical or artistic skill set and working

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for others to make their dreams a reality for a long time before you get a shot at designing something of
your own. Tabletop gaming is somewhat similar. While the barrier to entry is smaller in the non-
electronic market in terms of development and delivery costs, you are still looking at designing games and
trying to pitch them to existing publishers which can be hard to find success with or you can try to self-
publish which can be expensive for an individual. I definitely wouldn’t get in to the market if money is
your aspiration, you should get into it for creative fulfillment.
Q. How challenging is it to get into the gaming industry?
Mr. Scott – The barrier to entry is very low. If you are going the self-publishing route, Kickstarter has
made getting a game out there and started much easier than it used to be. To get a game out there on
Kickstarter, you need your game prototype, some graphics, a polished campaign, and a marketing
presence to get funded. If you are going to sell to another publisher, you need a good prototype and
enough salesmanship to get heard and get them to love the game as much as you do.
Mr. Fry - It is very challenging to succeed in the gaming industry but getting into it, at least on the non-
digital side, is not that difficult. If you have an idea and the willingness to work tirelessly to improve it
enough to make it marketable, you can become a tabletop game designer.
Q. What obstacles could you face when getting into the gaming industry?
Mr. Scott– There are plenty of obstacles that can trip you up upon entering the industry. First you have to
make sure your game is different enough from existing games out there. Staying positive and motivated
can be tough if you are getting tough feedback. However, you have to be open to feedback both positive

Page | 39
and negative. Life also often tends to get in the way, be it someone is getting married, the birth of a child,
death of a family member, job/location change, or even a falling out in your group.
Mr. Fry- There are many obstacles, most notably getting noticed. There are a lot of people designing
games at different levels of professionalism and Kickstarter reflects this. Getting noticed by a publisher
can be extremely difficult as many are small enough that they only publish a few new games a year.
Publishing your own games requires a lot of effort marketing, developing, playtesting, and publishing
your product that requires more than just a desire to make a fun game. You have to be willing to take on
the (unpaid) duties of a full time publisher while you are likely also working a full time job to keep the
bills paid.
Q. What is the success rate for a first time game maker?
Mr. Scott – I am not certain what the success rate is. I can tell you that a lot of games on Kickstarter fail
to fund. If I remember correctly there is about a 30% success rate in funding. However, as with all
statistics you need to take that with a grain of salt. That number includes companies that are already in the
industry and have a large following. It also includes projects where the goal is $50 and you know it is
going to fund. On the failure side there are those that are just horrible games as well as those that have
very poorly designed campaigns or no market following.
We are one of the failures on Kickstarter. We got a little over 60% funded on there, raising $7,000. Our
main problems were not a large enough following, timing with reviews, and I think our price point was a
little high.
Mr. Fry - I’m not sure I’ve seen this quantified but I would imagine if you are talking about success as
getting your first designed game published, I bet it is less than 20%. If you are talking about making any
real MONEY from it, it is probably less than 2%. Most first time game publishers end up breaking even
or even sacrificing a little development money to see their idea become a reality.

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Q. How much monetary needs does one need to start a game?
Mr. Scott – If you use Kickstarter, you really only need enough money to create a few prototypes to send
out to reviewers to get some buzz going. However, if you don’t have any graphical folks on your team,
you may need to hire an artist for anything you need in that department. Then you will need a video
made, which you can do with an iPhone if you want to, but you are seeing more and more professional
videos out on Kickstarter these days. However, to make the game your Kickstarter will need to raise
enough money to cover all your production costs.
When it comes to actual manufacturing costs, it really varies depending on what the components of your
game are. You are most likely going to have to do a print run of at least 500 units unless you go with a
print on demand service. It also depends on quality and printing company as to what your final per unit
cost will be. If you are doing a small card game with a set of rules, the cost can be around $3.50 or so per
unit for a print run of 500, with costs going down the more you print.
Mr. Fry - To develop a game idea from inception, you will need costs to allow you to build iterative
prototypes, which is usually minimal but does depend upon your game components. There are several
companies out there which will ‘Print on Demand’ copies of games, allowing you to produce in a
semiprofessional fashion your own game design idea. This can be good for concepting although it will
cost about half what you would normally sell the game for to print this way so it is not a commercially
viable production solution really. If you opt to just do designs, you do not need to create a business
necessarily for that and can work as many designers do on a purely freelance basis. If it is your intent to
publish your own game (as I suspect it is from the sound of this project), you would need to set up an LLC
or S Corp and put a few straightforward business elements in place. A PO Box, a website, a business
phone number, lining up a CPA and possibly a lawyer. All of these are business necessities and while
they don’t cost a lot, you would need to spend several thousand dollars and some of your time to make
that happen. Beyond that, you are looking at printing, shipping and advertising costs, warehousing costs,

Page | 41
and order fulfillment expenses if you are going to publish and sell your own product which can get you up
into the $20-60K range.
Q. If someone sells their vision to a larger gaming company, how much percentage would they
receive for their game?
Mr. Scott– A typical contract to a designer is 3-5% of MSRP. 5-6% of Wholesale. 20-25% of Net Profit.
If you go this route, look for clauses like a guarantee that the game will be out in 2 years or you get to take
the game to a different publisher.
Mr. Fry - For a first time game designer, the percentage would likely be a flat fee. Many first time game
designers simply sell their design to a company that then has full rights to it. Since they are taking on the
risk, they limit their risk in payout of potential profits if the game is (likely) not a huge seller. In the
instances where a designer signs over the production rights on a game, the percentage varies widely based
on the publisher but I have seen examples of a flat fee of 4-10K plus a percentage (like 5-8%) of the sales
on the game. As you can see, you aren’t going to make big money selling designs to a publisher unless
you churn out quite a few that are good enough to buy every year. Obviously once someone makes a
name for themselves in the industry like Eric Lang for example, his designs are highly regarded and I’m
sure he is paid much better for them in turn.
Q. What is the hardest aspect of creating a game?
Mr. Scott – This is going to vary from person to person. When we first started, it was being new, not
knowing enough and trying to get your name out there. Nowadays the biggest hurdle for me is time. It is
tough to balance your day job and family and still have time to work on games. This is especially true with
a young child. It seems like I get interrupted by someone or something every 10 to 15 minutes unless I
say up really late and then I am exhausted, so that is really not an option.

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Mr. Fry - Coming up with an idea is the easy part, the hard part is refining it, play testing it, refining it
more, finding people to play it and give feedback repeatedly over and over until it is good enough to put
out there for the world to see. You really have to stick with it, have thick skin, and be prepared to
compromise on your idea to turn it into something sellable. Once you have it produced, visibility is by
FAR the most difficult thing to achieve. Without an enormous marketing budget, getting your game out
there for people to look at and try is an uphill battle.
Q. How long does it take from start to finish to make a game?
Mr. Scott - If you are talking from concept to finished product, that varies widely based on the creator.
Once you have the game designed and the rules are set, it can still vary depending on art needs, play
testing, marketing, and then manufacturing. Once you have it at the printer, it can be a quick turnaround
of about a month or two, or it could be longer if you are using a popular printer and they have a large
queue ahead of you, it could take more like four months. Overseas printing you also have to take things
into account like Chinese New Year and customs when freighting it back to the US.
Mr. Fry - How long does it take to build a mountain? No, in all seriousness game development can be a
long drawn out process. It depends on several factors: Are you doing game development as a full time
job? Do you have the financial resources to expedite playtesting iterations and get your art and creative
design done in a rapid timetable? Do you have the money to send it off to a printer and have it done or are
you going to have to raise funds to help with this? I have seen games done by contracted full time
designers with the big publishers take about 8-10 months from concept to release but that’s very rapid.
Usually smaller developers can take 6 months to a year or more to develop the game, then 4 to 8 months to
get their product ready for market and fund an initial print run.
Q. What are some tips or advice you would give somebody who wishes to create a board game?

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Mr. Scott - The main advice is play test. Don’t just play test with your friends and family. They are
usually going to be supporting and tell you your game is great. Sometimes you get those friends that are
always honest no matter what and will tell you your game sucks if they don’t like it. Take your game to a
Protospiel. At Protospiel there are people testing and giving good feedback and publishers are there
looking for new games. Also, blind play testing is encouraged as well. Blind play testing is where you
drop off the game and don’t say a word. You let them read through the rules and play the game on their
own.
Mr. Fry - First I would make sure you are doing it because you have a passion for design or a desire to
create something to share with others. If you don’t start there, you will tire of the process. Secondly, I
would look at how other companies go through the process and try to learn from their direction. We have
all screwed up out there trying to get to the end of the process and seeing how others have gotten around
problems can help you avoid them in the future. Nowadays the Internet and social media makes some
amount of that possible. Thirdly, don’t be afraid to get out there and share your idea. Show it to everyone
who will look at it. Share your passion for it, get them excited. Listen to feedback and have an open mind
to it, try to look at your design from the eyes of other people and see if there is something you can do to
make it better. Finally, don’t get discouraged. As with any major creative endeavor, you will have people
tell you why you can’t do it or why you shouldn’t. You will have people tell you that the sum of your
labors is crap. They have no investment in it, so it is easy to brush it off of their radar. If you think your
design has some merit, refine it and build it and show it to people and you will find others who agree.
As seen above, the interview with Mr. Chad Scott and Mr. Josh Fry provided detailed information to help
Mr. Waldrop in the creation of Brain Train. The advice from Mr. Scott and Mr. Fry should aid Mr.
Waldrop in his decisions to continue the creation of Brain Train.

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4.3 Western Carolina University Professor Survey
To have a better understanding of individual’s opinions about educational games, our team created a
survey to send out to Western Carolina University’s professors within the different colleges at the
university. The questions on the survey asked demographic questions along with what the professors
thought about educational games in general. Below is the survey our team sent out to professors
throughout the university.
1. What is your gender?
a. Male
b. Female
2. What is your highest level of education?
a. High school diploma/GED
b. Some college
c. Associate degree
d. Bachelor’s degree
e. Master’s degree
f. Professional degree
g. Doctorate degree
3. Employment Status: Are you currently…..
a. Employed for wages
b. Self-employed
c. A student
d. Military
e. Retired

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f. Unable to work
4. What college and department do you current teach in?
a. __________________________________________________________________
5. What type of classes do you teach?
a. __________________________________________________________________
6. What is the highest class level do you teach?
a. 100 level
b. 200 level
c. 300 level
d. 400 level
7. I would use educational games to engage students actively while in class?
(1 being not at all likely, 10 being extremely likely)
a. 1 2 3 4 5 6 7 8 9 10
8. How effective are educational games to college level students?
a. Very Unlikely
b. Unlikely
c. Somewhat Unlikely
d. Undecided
e. Somewhat Likely
f. Likely
9. What are your thoughts about educational games? Please explain:
__________________________________________________________________________
10. What are the advantages about educational games? Please explain:
__________________________________________________________________________

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11. What are the disadvantages about educational games? Please explain:
__________________________________________________________________________
4.3.1 Western Carolina University Professor Survey Results
The results of the survey are shown below to get a better understanding of how professors feel about
educational games in a classroom setting. The purpose of this survey was to show Mr. Waldrop the
opinions and feelings of the individuals who would potentially be using Brain Train in the educational
setting, Mr. Waldrop wishes to target.

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# Answer Response %
1 Male 15 39%
2 Female 23 61%
Total 38 100%

Page | 48
# Answer Response %
1
High school
diploma/GED
0 0%
2 Some college 0 0%
3
Associate
degree
0 0%
4
Bachelor's
degree
1 3%
5 Master's degree 8 22%
6
Professional
degree
3 8%
7
Doctorate
degree
25 68%
Total 37 100%

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3. Employment status: Are you currently...
# Answer Response %
1
Employed for
wages
37 100%
2 Self-employed 0 0%
3 Student 0 0%
4 Military 0 0%
5 Retired 0 0%
6 Unable to work 0 0%
Total 37 100%
4. What college and department do you currently teach in?
Text Response
College of Education and Allied Professions School of Teaching and Learning
School of Teaching and Learning
WCU College of Education and Allied Professions
College of Education and Allied Professions
WCU
College of Education and Allied Professions; School of Teaching and Learning
College of Business; Business Administration and Law and Sport Management
Business
College of Business/Entrepreneurship, Sales and Marketing, and Hospitality and Tourism
Business / Business Admin. & Law and Sport Mgt.
College of Business - Entrepreneurship
Accounting
Global Management and Strategy
Business, Accounting, Finance, Information Systems, and Economics Dept.
Business, Accounting, Finance, Information Systems, and Economics Dept.
Fine and Performing Arts/Stage and Screen

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Western Carolina University, College of Business
College of Business, Accounting, Finance, Information Systems, and Economics Dept.
Global Management
Business Management
Art
Art Department
Business, Entrepreneurship
College of Fine and Performing Arts - School of Music
5. What type of classes do you teach?
Text Response
Mathematics methods for elementary and middle grades majors as well as education seminars for
clinical experiences
Methods
Primarily literacy education courses
Elementary/Middle Grades
GRAD
Face to Face
Education
Methods, lecture
LAW
Business law
Marketing
Sport Mgt.
Face-to-face undergrad & on-line undergrad & Masters
Intro
Quantitative
Accounting
Economics
Studio/lab, lecture
Introduction to Business
Face to face and online. Accounting classes.

Page | 51
6. What is the highest class level you teach?
# Answer Response %
1 100 level 1 3%
2 200 level 2 6%
3 300 level 4 11%
4 400 level 29 81%
Total 36 100%

Page | 52
7. I would use educational games to engage students actively while in class
(rating: 0 being very unlikely and 10 being very likely)
# Answer Response %
0 0 3 8%
1 1 1 3%
2 2 1 3%
3 3 4 11%
4 4 2 5%
5 5 4 11%
6 6 2 5%
7 7 5 13%
8 8 5 13%
9 9 5 13%
10 10 6 16%
Total 38 100%

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8. How effective are educational games to college level students?
# Answer Response %
1 Very Unlikely 1 3%
2 Unlikely 2 6%
3
Somewhat
Unlikely
2 6%
4 Undecided 10 28%
5
Somewhat
Likely
7 19%
6 Likely 8 22%
7 Very Likely 6 17%
Total 36 100%

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9. What are your thoughts about educational games?
Text Response
They have to be of the utmost quality in meaning making for me to utilize them
I think the quality can vary, but I think the research is strong on the use of gaming (not just digital) in
all types of classrooms.
This can be an effective strategy as long as it is varied with other approaches.
If they can be completed in less than one 70-minute class period AND if they support my own
objectives, I may use them.
Questions about their ability to appropriately challenge students
I've used many over the years, starting with recording monopoly transactions in accounting ledgers,
two business simulations, making play-doh horse and riders and making punch and keeping track of
costs, accounting baseball... My impression is they work well in small classes but generally not as well
when there are 40-50 students. Except monopoly, played outside of class, worked. It's difficult to
keep the entire class engaged in learning when play is involved.
It depends! Hands on learning is a large part of experiencing the arts... I guess a game could replicate
the tactile experience of art- but maybe not?
If they carry with them a heavy lesson applicable to the course, I am all for it.
They do not replace instruction.
MY SON IS A GAME PROFESSIONAL, SO I AM SUPPORTIVE BUT DOUBTFUL THAT I COULD USE THEM
EFFECTIVELY IN MY CURRICULUM.
If adequate training is provided, I believe they can be very beneficial.

Page | 56
10. What are the advantages of educational games?
Text Response
They can be engaging and a different way of helping students learn
Engagement, modeling of this strategy for teacher candidates (e.g. so that they might use this
approach in their own classrooms)
The good ones can engage students and they provide and they offer another way to teach.
Students can relate
Can apply real world situations and give better understanding of concepts
Experiential learning
Application of theory
Students are often receptive to alternative means of delivering content.
For those students that get engaged and involved, games can make learning more fun and it can bring
real-world aspects into the classroom (such as keeping track of costs as you make something in class,
as they do in manufacturing plants.
Collaboration/competition
We just love games as a culture
Learning without knowing!
significant lasting learning if game is good
Have to see it first, but would hope it would mock the real world
I suppose if done well they would be engaging.
In teacher education, it provides our students with an additional strategy to use in the classroom.
They engage students, they get the message across in a non-lecture way, and they can be more
memorable to students.

Page | 57
11. What are the disadvantages about educational games?
Text Response
Distraction, level of rigor
Don't require critical or creative thinking
If there is no real substance or they are simply to help with memorization, they are a distraction
rather than a true learning tool.
There might be the potential to focus so much on the gamification that learning goals and objectives
are less of a focus. Fun is only effective when learning is at the center.
Sometimes, they take too long, are expensive to buy, or the instructions are ambiguous.
Some students may not take it seriously
Could be boring, too easy
This can't be the sole method of delivery, but I don't see a downside as long as students remain on
task.
Can be distracting for students, can allow a lit if social ladino, and if complicated can be frustrating
and therefore counterproductive (like the simulations I tried).
Often take more than 50 minutes
Screen time as opposed to face time
Potential to get distracted and miss the "lesson"
Not enough of them; sometimes students don't take seriously so impact is not great
Classroom size can limit attention
Not all students/classrooms have the equipment or technology available.
They are blown off as just being fun and games by the students.
Over-use may cause traditional study skills, such as reading, writing, and other things that require
sustained concentration, to wither.
As the results above show, professors at Western Carolina University vary on opinion about educational
games in a classroom setting. Each question in the survey was asked to add a level of understanding of the
reception of board games by those who could potential purchase and use Brain Train in an educational
setting. Question 4, “what college and department do you currently teach in”, was included in the survey
to allow Mr. Waldrop to see the large variety of departments that could potentially use Brain Train.
Question 5, “what type of classes do you teach” and question 6, “what is the highest class level you teach”
were asked to get a better understanding of the individuals taking the survey. It provides information to
see if there is a relation between the type of class and the difficulty of a class for professors to incorporate
Brain Train in the curriculum.

Page | 58
4.4 Education Major Survey
To have a better understanding of individual’s opinions about educational games, our team created a
survey to send out to Western Carolina University’s students who are pursuing a degree in education. The
questions on the survey asked demographic questions along with what the students thought about
educational games in general. Below is the survey our team sent out to students who are pursuing a degree
in education.
a. Male
b. Female
a. High school diploma/GED
b. Some college
c. Associate degree
d. Bachelor’s degree
e. Master’s degree
f. Professional degree
g. Doctorate degree
3. Employment Status: Are you currently…..
a. Employed for wages
b. Self-employed
c. A student
d. Military
e. Retired
f. Unable to work
4. Do you find games helpful for learning? Please explain why:

Page | 59
__________________________________________________________________________________
5. Which type of learning tool do you learn best with (choose the one that defines you the best)
a. Auditory
b. Tactical (Hands-on)
c. Visual
d. Written
6. What level of education are you currently teaching or actively pursuing?
a. Elementary
b. Middle School
c. High School
d. College
e. Other
7. How important is implementing technology into the classroom?
(1 being not important, 10 being very important)
a. 1 2 3 4 5 6 7 8 9 10
(1 being never, 10 being always)
a. 1 2 3 4 5 6 7 8 9 10
9. What are your thoughts about educational games?
a. ________________________________________________________________
10. What are the advantages about educational games?
a. ________________________________________________________________
11. What are the disadvantages about educational games?

Page | 60
a. ________________________________________________________________
4.4.1 Education Major Survey Results
The results of the survey are shown below to get a better understanding of how students who are pursuing
a degree in education feel about educational games in a classroom setting. The purpose of this survey was
to show Mr. Waldrop the opinions and feelings of the individuals who would potentially be using Brain
Train in the educational setting, Mr. Waldrop wishes to target.

Page | 61
# Answer Response %
1 Male 10 67%
2 Female 5 33%
Total 15 100%

Page | 62
# Answer Response %
1
High School
Diploma/GED
0 0%
2 Some college 10 67%
3
Associates
degree
1 7%
4
Bachelor's
degree
4 27%
5 Master's degree 0 0%
6
Professional
degree
0 0%
7
Doctorate
degree
0 0%
Total 15 100%

Page | 63
3. Employment status: Are you currently...
# Answer Response %
1
Employed for
wages
5 33%
2 Self-employed 1 7%
3 Student 9 60%
4 Military 0 0%
5 Retired 0 0%
6 Unable to work 0 0%
Total 15 100%

Page | 64
4. Do you find games helpful for learning? Please explain why
Text Response
Yes, they help engage students
Yes, i like challenges.
No. They distract me.
Yes, it helps make certain topics stick
Yes, the act of playing a game is much more memorable than a lecture
Yes because games, for the most part, require the person to follow directions to complete a puzzle.
Sometimes. It depends on how the game functions as compared to what I am trying to teach.
Computer labs are also hard to book and get everyone into in a crowded school.
yes, for some people
Somewhat, it depends on how the person learns.
For skills that are muscle memory dependent
5. What type of learning tool do you learn best with?
# Answer Response %
1 Auditory 0 0%
2
Tactile
(Hands-on)
5 33%
3 Visual 5 33%
4 Written 5 33%
Total 15 100%

Page | 66
6. What level of education do you plan on actively pursuing after college?
# Answer Response %
1 K-5 0 0%
2 6-8 6 40%
3 9-12 2 13%
4 College 7 47%
Total 15 100%

Page | 68
7. How important is technology in the classroom? (Rating: 1 being very
unimportant and 10 being very important)
# Answer Response %
0 0 0 0%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 2 13%
6 6 2 13%
7 7 5 33%
8 8 2 13%
9 9 1 7%
10 10 3 20%
Total 15 100%

Page | 70
# Answer Response %
0 0 1 7%
1 1 0 0%
2 2 0 0%
3 3 0 0%
4 4 0 0%
5 5 1 7%
6 6 2 14%
7 7 2 14%
8 8 6 43%
9 9 1 7%
10 10 1 7%
Total 14 100%

Page | 71
9. What are your thoughts on educational games?
Text Response
They are great, not used enough in the class though
Can be used to lighten the mood in a productive way.
They helped me learn growing up, so I think they are great
Could be useful in improving students retention rates
Not much experience, but I think if a school had the resources it would be beneficial.
Educational games help kids stay focused
They are important for different styles of learning in children
It’s good for different learning styles
They promote communication between classmates
They aren’t really used very much
They are out dated.

Page | 72
10. What are some advantages of educational games?
Text Response
Inexpensive, reusable, fun.
Attention retained
They're fun for kids.
Help reinforce what is taught in the classroom
They can teach kids basic information outside of the classroom and make it fun. Pajama Sam helped
me learn to read and think critically, as well as helped with some math. They can help tremendously.
Using all learning styles in a single lesson and could make learning "fun"
Motivation, a change of pace, more work being done.
Focused kids, and less worries
Children can learn from different approaches
It gives kids different learning opportunities
Get bored students involved
They can engage younger students
11. What are some disadvantages of educational games?
Text Response
Not all students are engaged.
Motivating students
They can be a distraction.
Kids could possibly miss the point, but if it's made well that shouldn't be an issue
Some students may excel more than others or the take away lesson may be missed.
Students will get off task quickly.
Not everyone favors games
Not every kid loves games
They can be expensive, not all the students like games
Students can get off track/ won't take it seriously
As the results above show, students obtaining an education degree at Western Carolina University vary on
opinion about educational games in a classroom setting. Each question in the survey was asked to add a
level of understanding of the reception of board games by those who could potential purchase and use
Brain Train in an educational setting. Question 5, “what type of learning tool do you best learn with”, was
included in the survey to allow Mr. Waldrop to see if the learning style of Brain Train corresponds with
the current learning style of students who are currently enrolled in the School of Teaching and Learning at
Western Carolina University. Question 6, “what level of education do you plan on actively pursuing after

Page | 73
college” was asked to get a better understanding if Brain Train’s concept would be marketable towards the
specific target market that the students would potentially be teaching.

Page | 74
Conclusion
Through the research conducted for Mr. Waldrop through the situational analysis and the surveys
completed by Western Carolina University professors and education majors, Brain Train has a vast
amount of information and data to further the company’s knowledge in the gaming industry.
Understanding these aspects will be a great attribute to Brain Train during the creation and production of
the game.
Recommendations
After extensive research and first hand data provided through surveys, it is shown that Brain Train has a
chance of being successful. Through the survey data provided by Western Carolina University professor
and students pursuing degrees in education, these individuals provided information about how helpful
educational games are in a classroom setting but some also said educational games are a waste of time
within instruction time and would not use games in their classroom.
For Brain Train to not fail, Mr. Waldrop will need to add areas of interest to the game (i.e. subject
categories, current events, etc.). To be successful within the toy, doll, and game manufacturing industry,
Mr. Waldrop will need to take inconsideration the changes that need to be made to Brain Train. The aspect
of the original game can be difficult to incorporate into school’s curriculum. If Mr. Waldrop added topics
related to the area of study, it could have a potential to be a success in the educational game market. Brain
Train has good structure but with the proper molding and figure out proper requirements for marketing
educational games to school systems.
Regards
Our team has truly enjoyed working with Mr. Waldrop and researching information to help the creation of
Brain Train. We would like to thank Mr. Waldrop for allowing our team to work with him and learning
the game, Brain Train. We hope Mr. Waldrop finds success with the creation and Brain Train.

Page | 75
Bibliography
"Cell Phones and Kids." Faith and Safety. Web. 24 Sept. 2014. <https://faithandsafety.org/cell-phones-
and-kids>.
"How Many Infants Are Born in the United States Each Year?" NIH. Web. 13 Oct. 2014.
<http://www.nichd.nih.gov/health/topics/infantcare/conditioninfo/Pages/born.aspx>.
Invention/Technology Evaluation Results from Lambert & Lambert
Moser, Harry. "How Will China's Labor Turmoil and Rising Wages Impact Reshoring?" Industry
Week. Web. 3 Oct. 2014. <http://www.industryweek.com/ask-expert-reshoring/how- will-
chinas-labor-turmoil-and-rising-wages-impact-reshoring>.
"Number of Smartphone Users in the U.S. from 2010 to 2018 (in Millions)." Statista. Web. 29 Sept.
2014. <http://www.statista.com/statistics/201182/forecast-of-smartphone-users-in-the-us/>.
"Product and Brand Management." Emerald Insight. Web. 21 Oct. 2014.
<http://www.emeraldinsight.com/doi/pdfplus/10.1108/10610421011018347>.
"Reshoring." Wiktionary. Web. 2 Oct. 2014. <http://en.wiktionary.org/wiki/reshoring>.
"Smartphone Users Worldwide Will Total 1.75 Billion 2014." EMarketer. 16 Jan. 2014. Web. 24
Sept.2014.<http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-1
75-Billion-2014/1010536>.
"The Top 20 Valuable Facebook Statistics." Zephoria. Web. 1 Oct. 2014. <https://zephoria.com/social-
media/top-15-valuable-facebook-statistics/>.

Page | 76
"Toy, Doll, and Game Manufacturing Industry." IBIS World Industry Report. Web. 22 Sept. 2014.
<http://clients1.ibisworld.com/reports/us/industry/ataglance.aspx?indid=894>.

Page | 77
Appendix 1: IBIS World Industry Report (Toy, Doll, and Game Manufacturing in the US Industry Report)

Page | 79
Game time: Despite recovering demand,
competition from China remains a threat
IBISWorld Industry Report 33993

Page | 80
Toy, Doll & Game
Manufacturing in the
US
July 2014 Zeeshan Haider
2 About
this
Industry 18 International Trade 35 Key Statistics
2 Industry Definition 20 Business Locations
2 Main Activities

Page | 81
35 Industry Data
35 Annual Change
2 Similar Industries 22 Competitive Landscape
2 Additional Resources
3 Industry at a Glance
4 Industry Performance 4 Executive Summary
4 Key External Drivers

Page | 82
22 Market Share Concentration
22 Key Success Factors 36 Jargon & Glossary 22 Cost Structure Benchmarks
24 Basis of Competition 25 Barriers to Entry
26 Industry Globalization
6 Current
Performance 27 Major Companies 9 Industry Outlook 27 Hasbro Inc.
12 Industry Life Cycle
31
Operating
Conditions 14 Products & Markets 31 Capital Intensity
14 Supply Chain
14 Products & Services
16 Demand Determinants
17 Major Markets

Page | 83
32 Technology & Systems 32 Revenue Volatility
33 Regulation & Policy
34 Industry Assistance
www.ibisworld.com | 1-800-330-3772 | info@ibisworld.com

Page | 84
WWW.IBISWORLD.COM Toy, Doll & Game Manufacturing in the US July 2014 2
About this Industry
Industry Definition
Main Activities

Page | 85
This industry comprises companies that manufacture dolls, doll accessories, action figures, toys, games
The primary activities of this industry are
Manufacturing action figures
Manufacturing dolls, doll parts and doll
clothing Manufacturing stuffed toys
Manufacturing children’s automobiles
Manufacturing crafts and hobby kits
Manufacturing children’s and adult games
Manufacturing science kits
Manufacturing toy and hobby models
Manufacturing video game machines

Page | 86
(including electronic), hobby kits and children’s vehicles (except metal bicycles and tricycles).
The major
products
and services in this industry are Children’s
vehicles
Dolls and
action
figures Electronic toys
Models and
crafts Non-
electronic toys
Other
Similar Industries 33461 Recordable Media Manufacturing in the US
Operators in this industry manufacture electronic video game cartridges and reproduce video game
software.
33699a Motorcycle, Bike & Parts Manufacturing in the US
Establishments in this industry manufacture bicycles and metal
tricycles.
33992a Athletic & Sporting Goods Manufacturing in the US
Businesses in this industry manufacture sports and athletic goods for children.
Additional Resources For
additional information on this
industry
www.nam.org
National Association of Manufacturers
www.toyassociation.org
Toy Industry Association, Inc.
www.census.go
v US Census

Page | 88
Revenue vs. employment growth
Impor sector
12 34
0 32
30
−12
28
t penetration into the
manufacturing

Page | 89
−24 26
−36 24
Year 06 08 10 12 14 16 18 20
Year
Revenue Employment
06 08 10 12 14 16 18 20
SOURCE:
WWW.IBISWORLD.COM
Market Share Hasbro Inc.
9.7%
p. 27
Key External Drivers Import
penetration into the
manufacturing sector
Trade-weighted index
Demand from hobby and toy
stores
Per capita disposable income
Demand from department
stores
p. 4
% change
%
Products and services
segmentation (2014)
5
.
5
%
7
.
9
%
O
t
h
e
r
D
o
l
l

Page | 90
s
a
n
d
a
c
t
i
o
n
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s
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3
%
E
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e
c
t
r
o
n
i
c
t
o
y
s
1
2
%
M
o

Page | 91
d
e
l
s
a
n
d
c
r
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.
3
%
C
h
i
l
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r
e
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s
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e
h
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c
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e
s
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7
.
3
%
N
o
n
-
e
l
e
c
t
r
o
n
i
c
t
o
y

Page | 92
s
S
O
U
R
C
E
:
W
W
W
.
I
B
I
S
W
O
R
L
D
.
C
O
M
Industry at a

Page | 93
Glance Toy, Doll & Game Manufacturing
in 2014
Key Statistics Snapshot

Page | 95
Annual Growth 09-14
Exports
.0bn

Page | 96
Annual Growth 14-19
Businesses
Industry Structure Life Cycle Stage Revenue Volatility
Capital Intensity Industry Assistance
Concentration Level

Page | 97
Decline Medium Low Low
Low

Page | 98
Regulation Level Heavy Technology Change
Medium Barriers to Entry Medium Industry Globalization
High
Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 35

Page | 99
WWW.IBISWORLD.COM
Industry

Page | 100
Toy, Doll & Game Manufacturing in the US July 2014 4
Performance
Executive Summary | Key External Drivers | Current
Performance Industry Outlook | Life Cycle Stage
Executive The Toy, Doll and Game Manufacturing industry will continue to recover from
devastating revenue losses incurred during the recession. Manufactured products in
this industry are discretionary items and demand for these products represents a strong
positive correlation with per capita disposable income, consumer sentiment and the
availability of leisure time. Most of these demand drivers took a turn for the worse
during the recession, as consumer sentiment fell considerably, owing to high
unemployment, a bleak economic
Despite higher demand, toy manufacturers will lower prices to stay
competitive, hurting profit
outlook and a fall in per capita disposable income. Furthermore, products produced by
industry operators tend to overlap, causing manufacturers to compete fiercely on price,
with consumers consistently seeking bargains.
Since price competition in this industry is high, domestic operators have been forced
to reduce prices to compete with cheap imports, sourced from
low-cost economies such as China and Vietnam. However, as a labor-intensive
industry, imported products have a significant advantage when it comes to production
costs. As a result, domestic

Page | 101
industry operators have been forced to settle for lower profit margins to compete with cheaper imports, the
prospect of which has reduced the attractiveness of this industry. Furthermore, many companies in this industry
have completely disbanded US-based production operations and shifted production facilities to East Asia and
China, which has also reduced revenue.
Given the significant offshoring and price competition from imports, which are expected to account for
94.0% of domestic demand in 2014, revenue is expected to decrease at an annualized rate of 0.3% to $2.3
billion, during the five years to 2014 and is expected to decline 2.1% in 2014.
Nevertheless, the industry is expected to make a modest recovery during the five years to 2019. This recovery
will be spearheaded by a new and emerging trend of “reshoring,” whereby companies relocate their manufacturing
operations back to the United States, where there are lower compliance and transportation costs, and a greater
ability to respond to changes in the market. Increasing labor costs in China are also incentivizing this trend. This
phenomenon of reshoring, coupled with improving conditions in the domestic economy, will help industry revenue
grow at an annualized rate of 0.7% to $2.4 billion, over the five years to 2019.
Key External Drivers Import penetration into the manufacturing sector
Growth in the volume of imported toys in the United States has created intense
competition for domestic toy manufacturers over the past five years. Despite instances
and perceptions of inferior quality, imported toys have become increasingly popular
among

Page | 102
consumers over domestic goods due to their lower prices. Import penetration into the manufacturing sector is
expected to increase in 2014, posing a potential threat to the industry.
The trade-weighted index (TWI) measures the strength of the US dollar

Page | 103
Industry Performance
Key External Drivers continued

Page | 104
relative to the currencies of countries that trade with the United States. A drop in the value of the US dollar leads to
lower relative export prices and higher relative import prices, benefiting industry revenue. On the other hand, when
the TWI rises, there is greater import competition and industry exports are relatively less competitive in the global
market. The TWI is expected to increase in 2014.
Demand from hobby and toy stores Regarded as specialists in the toy retail market, hobby and toy stores are key
buyers of industry products. Hobby and toy stores purchase an extensive range of goods from industry
manufacturers. Therefore, an increase in demand for toy, doll and game products from hobby and toy stores
translates to demand and revenue growth for manufacturers. Demand from hobby and toy stores is expected to
increase throughout 2014.

Page | 105
Per capita disposable income Toys, dolls and games are discretionary items so changes in
disposable income levels influence industry demand. A rise in household disposable income increases the
propensity for customers to purchase more industry products, causing a growth in demand. Per capita
disposable income is expected to increase during 2014, presenting a strong growth opportunity for the industry.
Demand from department stores Discount department stores, such as Walmart and Target, have grown to
become leading retailers of children’s toys. An increase in demand at the retail level also leads to growth in
demand for toys at the manufacturing level. Demand from department stores is expected to increase in 2014,
representing a potential opportunity for the industry.
Import penetration into the manufacturing sector
34
32
30
28
26

Page | 106
95
90
85
80
75
24
Year 06 08 10 12 14 16 18 20

Page | 107
70
Year 06 08 10 12 14 16 18 20
S
O
U
R
C
E
:
W
W
W
.
IBISWORLD.COM

Page | 108
Current Performance

Page | 110
The Toy, Doll and Game Manufacturing industry has suffered over the five years to 2014, due to falling demand
brought on by poor economic conditions and increasing competition from low-priced imports. Imports have enjoyed
considerable cost advantages over domestically produced goods during the past five years due to lower labor costs
and significantly lower environmental regulation abroad. Imported toys have therefore become significantly cheaper
as compared with domestically produced goods and, as a result, domestic industry operators have cut down on their
margins in order to remain competitive. However, this reduction in profitability also encouraged many industry
operators to shift production from the United States to Asia and the Far East in order to remain competitive. Many
industry operators had to exit the industry altogether because they could no longer
Demand in the Toys, Dolls and Game Manufacturing industry is primarily influenced by economic conditions such
as consumer confidence and disposable income levels. While consumer sentiment is expected to climb in 2014, it
experienced steep declines during the recession, falling 43.9% in 2008 and 22.1% in 2009. In addition, per capita
disposable income fell for the first time in nearly two decades in 2009. Since then, recovery of this driver has been
marginal and slow. These factors forced consumers to curb spending on discretionary items, including toys, dolls
and games. Many consumers who did purchase industry-related products during this time opted to seek out sales
and bargains online and at second-hand stores rather than pay full retail prices.
As retail spending slowed, demand for manufactured goods declined, with

Page | 111
Industry revenue
12
0
−12
−24
−36
Year 06 08 10 12 14 16 18 20
SOURCE: WWW.IBISWORLD.COM
compete with low-cost imports, which caused industry establishments to decline at an annualized rate of 4.3% to
535, over the five years to 2014. These factors combined to reduce revenue at an annualized rate of 0.3% to $2.3
billion and it is expected to drop another 2.1% in 2014.
revenue falling a staggering 30.5% in 2009. Industry operators rely heavily on demand from retailers, especially
with the onset of wholesale bypass, which effectively eliminates wholesalers from the supply chain and is a growing
trend among manufacturers. By owning their distribution and retail outlets, or by selling directly to third-party
retailers, manufacturers can better manage production volumes and maximize profit margins. Unfortunately,
operators’ increasing reliance on retail demand resulted in painful losses during the recession, when retail
spending plummeted.
Fortunately, demand for toys, dolls and games has been rebounding as the economy has gradually recovered.
In 2010, consumer sentiment and household disposable income rose, encouraging consumers to increase

Page | 112
Diving demand continued
Produced in China

Page | 113
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