Dalirium games and entertainment business plan for international expansion / Michael Andrew V. Cruz

Year : 2004

Number of Pages : 28 leaves

Adviser : Prof. Edison D. Cruz

Executive Summary

The demand for mobile communications is exploding. The growth in mobile phone usage paired with the proliferation of digital wireless protocols such as the Wireless Application Protocol (WAP) and GPRS Networks as well as the increasing substitution rates of old monochromatic screen phones with color screen or MMS phones has led to one thing : demand for multimedia content. With increased competition and a strong demand for cutting edge content and applications, the world has opened up to a whole new industry for high technology firms able to provide this world wide clamor for next generation products and services for the next generation of mobile phone consumers. Dalirium Games and Entertainment is taking advantage of this opportunity armed with its experience in the Philippine market one of the most advanced mobile data markets in the world, to bring its products and services to global markets and be recognized as one of the leading providers of mobile gaming content in the world. Company Overview. Dalirium Games & Entertainment is a technology startup based in Ortigas Center, Pasig. Dalirium produces content and services for mobile phones. It distributes its products and services through mobile phone operators and portals who in turn offer these for download to subscribers of mobile phone services. Dalirium uses the latest technologies in mobile applications such as JAVA and Symbian to produce mobile gaming and entertainment content. Product & Services. Dalirium mainly produces JAVA or Symbian games for mobile phones. Our customers are mostly mobile phone operators who distribute the games via their networks to their subscribers : users of high end mobile phones that pay for the games when they download it from the mobile phone operators. Dalirium and the operator share the revenues generated from each download. Dalirium also produces customized games for different customers including, mobile phone operators, handset manufacturers, and other branded content owners who desire to have a game branded as their own. Market Opportunity. The market is entering a new era. With reliable technology meaning faster connections to networks and superior multimedia ability of handsets, plus with effective revenue models in place, the fast maturing consumers will make the year 2004 the year that mobile multimedia and entertainment goes mass market. Now that consumers can download games onto their phones-full color, multi-player games that are far more sophisticated than ever before. These downloadable games represented a market of more than 300 million euros in Western Europe alone in 2002. (Mobile Entertainment Forum) Up until 2003, games were mainly factory installed and usually in black and white, single-player versions (like backgammon or solitaire). But today, games are in full revolution and it's a market with enormous potential for growth over the next few years. This revolution can be summed up by the move: -From black and white to full-color games. - From single player to multi-player games. - From embedded to interactive real-time games. About 850 million people worldwide will play games on mobile devices by 2006, according to a study released in 2002 by ARC Group. Overall, more than 43 percent of all wireless users will play wireless games, according to the study. Competitive Positioning. With the projected growth of mobile content usage, particularly in mobile games, competitors from all over the world will try to take advantage. Of particular concern will be the big players in PC and console gaming who have the resources to break into the mobile gaming space. To compete effectively, Dalirium will continue to rely on cutting edge technologies and make this continually available to our game developers. Total quality standards will be in place from the programming, the graphics to the game play. R&D will focus on new technologies and potential applications to gaming while business development will focus on developing unique content internally and with partners. Marketing & Sales Strategy. Marketing will focus on three major regions for game distribution : - Asia Pacific, - Europe, - US. Marketing will also focus on new market segments that have not been exploited by game makers. These possible niche markets can be leveraged when trying to penetrate new markets. Operators and portals are always looking for differentiated content. From our analysis they are currently weak in offerings for the teen and female market. Partnerships with brand owners will also be developed to deploy better and unique content offerings. Sales channels both traditional and non traditional will be developed to penetrate the market fast and effectively in new emerging markets. Costs of distribution will be kept to a minimum by tapping content brokers and by communicating directly with manufacturers and operators. Personnel Plan. The business development team of Dalirium will work together with a pool of content brokers to establish sales channels and relationships with various operators in the regions that are targeted. Financial Summary. Dalirium expects to generate revenue from international distribution by the 2nd quarter of 2004 and expects to earn Php 1.5 Million this year representing 60 percent of total sales of Dalirium for 2004.