Five Industry Forces
Five Industry Forces
Stated in the textbook, the intensity of each of the five forces determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be (Kroenke & Boyle, 2021, p. 40). Based on the five industry forces chart above, the entertainment industry is profitable because there will always be a clientele as people will always seek a means of entertainment. However, Escapology must continue to innovate their escape rooms and keep up with the current technology trends of the industry in order to continue growing. Since this industry is constantly evolving in terms of service technology, Escapology needs to effectively and efficiently update and maintain their information systems to remain relevant in the industry. If done well, it can be a very lucrative business.
Competitive Strategy
According to the textbook, an organization can focus on being the cost leader, or it can focus on differentiating its products or services from those of the competition (Kroenke & Boyle, 2021, p. 41). After analyzing Escapology’s structure, we concluded that it follows an industry-wide and product differentiation competitive strategy. This strategy focuses on finding and leveraging important elements that strongly appeal to the target consumer base, such as product features, quality, service, brand image, or customer experience. Businesses seek to build brand loyalty, demand higher prices, and create a competitive edge that is hard for competitors to match by focusing on uniqueness. For the product differentiation approach to maintain relevance and appeal in the selected industry segment and promote long-term growth and profitability, it necessitates constant innovation, market research, and an extensive understanding of client demands and preferences. Staying innovative and providing a variety of services unique to the typical escape room experience differentiates Escapology from other escape room companies. Escapology partnered with Warner Bros. Entertainment Inc to design escape rooms with more modern and competitive designs that are different from any other escape room. For example, they incorporated projection mapping into one of the rooms in Batman: The Dark Knight Challenge. Also, Escapology provides an exclusive party package service and a private event room that is a unique service in which typical escape room companies do not have. This gives customers the opportunity to experience a service with a high exclusivity variety and quality. This differentiation gives Escapology the advantage to decrease the threats of the five forces and maintain the company working in the escape room industry.
Value Chain
The primary activities within a value chain include inbound logistics, operations/manufacturing, outbound logistics, sales and marketing, and customer service. The inbound logistics of Escapology occurs when sourcing materials and equipment to support the design of the escape rooms. The materials gathered affects the quality of the product, that being the actual escape rooms. Escapology sources most of their materials from their corporate locations in Las Vegas, Orlando, and Connecticut. The corporate locations design and create the materials for all the puzzles. Franchises across the country will then put orders for the necessary equipment to construct the puzzle, fulfilling the operations and manufacturing activity. The outbound logistics involves providing a high-quality product or a unique and consistent experience for every participant of the escape room puzzle. Being a part of the entertainment services industry, Escapology relies heavily on the sales and marketing activity to induce potential customers to participate in the escape rooms. By utilizing social media platforms, Escapology promotes the various escape rooms they currently have on display. One of the ways that Escapology uses customer service is through the use of Game Masters who are employed by the company to have complete understanding of all the puzzles in order to assist participants to ensure a smooth escape room experience.
Business Processes
According to the textbook, a business process is a network of activities, respositories, roles, resources, and flows that interact to accomplish a business function (Kroenke & Boyle, 2021, p. 44). Escapology uses several business processes to manage their day-to-day operations. A structured process that Escapology utilizes is payroll. With the use of Employee Portal, an employee portal app that stores most of the employees' personal and payment information, the accountant can create employees' biweekly checks. Additionally, the app gives employees 24/7 access to view their pay stubs and payroll tax forms. On the other hand, a dynamic process that Escapology operates is a marketing process. In the entertainment services industry, strong marketing is necessary to create exposure for the business. Using social media platforms such as Instagram, Escapology promotes their business and advertises newly installed escape rooms. Escapology creates intrigue among potential customers by promoting the different types of escape rooms they have available. By promoting new rooms Escapology has the potential to draw new customers and retain existing ones.
Information Systems
Escapology has an efficient payroll system through the mobile application, Employee Portal. The accounting department, where biweekly checks are prepared and processed, is in charge of this effective method. Payroll to employees may be disbursed accurately and on time thanks to the seamless Employee Portal. Additionally, it ensures a safe and well-organized payroll procedure by automating the withdrawal of funds from the business' bank account. Additionally, Escapology uses a dynamic process that makes use of social media, specifically Instagram, as an information system for marketing. By using this platform, the marketing team interacts with the public by generating interest in upcoming escape room experiences as it establishes a strong online presence. In addition, posting aesthetically pleasing posts and uploading stories creates interactive content that not only presents its distinctive products, but also cultivates a feeling of community among all of our customers. Instagram's dynamic nature allows for real-time involvement, which helps Escapology keep the viewers engaged and increase demand for its escape room experiences.
Product or Process Implementation
Escapology is such a unique and exciting business that thrives to provide thrilling experiences to their customers. They continue to have a comparative advantage in providing a unique and immersive escape room experience. As part of the differentiation of product implementations, Escapology has enhanced their products and services by partnering with Warner Bros, which is an integrated entertainment company that contributes to the distribution, creation, production, marketing, and licensing of all forms of entertainment.
When it comes to the product or process implementations, Escapology have established alliances where they have both worked together to design high tech and very interactive escape rooms with Warner Bros. For instance, Scooby-Doo and the Spooky Castle Adventure and Batman: The Dark Knight Challenge were designed to offer customers a distinctive and memorable experience by emphasizing the innovative technology and nostalgic elements used. This is the way that Escapology is able to lock in customers, and give them an experience like never before. This form of production does not only make Escapology stand out above the rest, but it also gives them a competitive advantage considering Warner Bros. is so powerful and nostalgic. Colleen, Garwood’s Operational Manager, states, “I’ve noticed an increase in sales since Scooby-Doo was brought to Garwood”.