QUESTION 3 (25 marks)

Geeks (Pty) Ltd (Geeks) has developed what it believes will be a breakthrough in the computer gaming industry, a hologram streetfighter game. The player fights against what looks like a real- life opponent. Hologram, whilst not an entirely new concept, is still very much at the introductory phase of its lifecycle as a computer game. So far it has mainly been used in concerts in the entertainment industry. The game designed by Geeks has great future potential as a consumer product.

To date, the two inventors and owners of Geeks, Martin and Kabelo, have provided the funding for their business, but to move to the next stage and commercialise the prototype hologram gaming significant further investment will be required. Martin and Kabelo have put all their energy into creating the new invention and have not been interested in planning for the future of the business.

Although Martin and Kabelo think their Hologram game could be a successful product on a global scale, they have not so far undertaken any analysis of the likely competition. They know that they now need to give some consideration to their possible competitors.

REQUIRED:

1. (a) Explain to Martin and Kabelo with reasons why Geeks (Pty) Ltd should undertake

   competitor analysis. (7 marks)

2. (b) Discuss the types and sources of competitor information that Geeks (Pty) Ltd should collect to help it analyse possible competition. (13 marks)

3. (c) Discuss how Geeks (Pty) Ltd can use benchmarking as an element of competitor analysis including what benchmarking entails. (5 marks)

   (25 marks) [Grand total 75 marks]