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Case_report_Tmas Essay

Paper type: Essay Pages: 5 (1019 words)

Views: 278

Kwantlen Polytechnic University

School of Business



TMAS 5100 P61



MANDEEP KAUR (100378952)

Submitted On:


© 2019


“I hereby declare that all of the work in this assignment is my own. It has not been copied from any other student’s work, regardless of when that person was a student of kwantlen. Should this be shown not to be true, I understand that I will receive a mark of 0 %( ZERO) for this component of the course”


Enigma needs to increase net profit income by the end of coming fiscal year to remain competitive in the market and also either raise or maintain the market share of 33.

3% .To do so they need to address the following critical issues:


Leverage Miller’s sturdy leadership abilities to increase retention rate, resulting in more recur customers from each other’s personal experience.

Highly competitive industry with low barrier to entry and with a growth crisis can result in the loss of market share.

Capacity being limited with customers leading toward competition causing loses in profit and customer loyalty.

Weak promotion strategy stemming from no clear marketing plan that improperly advertises to the market and lowers the business’ market share or it can be termed as the narrow product strategy.

Poor HR strategy.


Enigma Escape Rooms has been experiencing positive demand for its first year of operations, manly benefitting from a top-quality product, streamlined process and being the first business to enter the Windsor market .In the first year the net profit of Enigma escape business was about $30,000. During the beginning of operations Enigma holds 100% share of the local market, though the esteem of the escape room understanding has fuelled a momentous market expansion and now there are presently two competitors with a overall four rooms in operation with a third competitor about to open up for business.


Threat of new entrants:

Threat of substitutes:

Degree of industry rivalry:

Bargaining power of buyers:

Bargaining power of suppliers:


Increase in net profit by minimum of $5173.

Spend maximum of $14000 on new equipment.

Be economically stable for business in terms of stability and sustainability.

Increase brand awareness without comparing to competitors.

Put hours of non-operation 3-7pm on weekdays to use.

To ensure that all the changes done on the business model or the structure is complete and will be fully come into operation by Sept 2017.

Help Enigma to either maintain or increase its market share by 33.3%.

Remain with a budget of $43105.

Increase revenue to at least $147,524 for the next fiscal year.


OPTION 1: Create New Location

Enigma’s first option will be to create 3 more adventured theme escape rooms which will differ from the rooms at the enigma’s main location. By creating more rooms for the theme that is already in high demand , by this enigma can take further control on the Windsor market. Promotional strategy can be making aware to customers about the new locations by means of social media and also discount will be offered to the existing customers that are already registered with them. This option is inline with the decision criteria which will ultimately increases market share by around 50%.But the main risk with this is maintaining the overall budget and also demand begins to fester due to irresistible amount of options.

OPTION 2: Renovate/Relocate Enigma’s current Products

Now the next option for enigma would be to modify the current escape room and renovate them using the new adventure themes that have not been used by them or any of the competitors. Also here also promotional strategy could be social media, like face book etc,. This theme will reduce the cost for renting to new location as the existing location is being modified.

OPTION 3: Create a Seasonal Escape Room




Owner has a experience in business field and also has a business degree.

Demand of the product is steady as well as growing.

Improve brand exposure with multiple locations.

Flexible work schedule and increased job satisfaction. WEAKNESSES

Business lacks the proper capacity to meet demand.

Product Line-Up is limited to few market segments.

Market strategy is not clearly defined.

Poor pricing strategy.

Growth crisis.


New available space for business expansion.

Competition lacks our levels of product quality.

Market Demand is extremely high for our product currently.

Minimal Technology is used. CRITICAL OPPORTUNITIES

Expand into more rooms capturing a different segment in the market.

Re-design existing products.

In order to take advantage of growing market start using new locations.

Use current business strategy to create new location. DEVELOP

Increase hours of operation from 3-7pm.

Provide more room options in a specialized product mix.

Capitalizing the growing economy.

Open new location to increase capacity.

The above may result in new Employee Processes.


Lack of differentiation from competitors.

Competitors with more diverse product mixes.

Better pricing strategies amongst the competitors.

Better promotion strategies amongst the competitors. CONTEND

Miller’s personal experience will help edge out new competition.

Loyal and satisfied customer base will help with word of mouth.

Constant demand will supersede the need for diverse products. CRITICAL PROBLEMS

Loss of market share due to high competitive industry.

Loss in profit and customer loyalty.

Product mix needs to be diversified.

Employee practices needs to re-evaluate.

Conclusion: In order to stand in the market Enigma needs to keep their market share and also they need to address their weak product mix and weak marketing strategy.



Adventure Theme Horror Theme # of Rooms Quality Level Overall Difficulty Use of Hints Failure Approach # of Locat-ions Price Strategy Online Presence

Enigma Yes No 3 Medium Medium Unlimited Free overtime 1 None Face book

Hidden trail No yes 2 High High Limited Unknown 2 Groupon Unknown

Exodus May be May be 3 High High Limited 50% off the 2nd hour 2 Groupon Top Search Result

Ape Escape Yes No 1 Medium Medium Unlimited Free overtime 1 Unknown Twitter, Instagram

Conclusion : Enigma’s main strength in the current market is having a fair difficulty, having 33.3% of the market , and making the product achievable for all consumers, but their main weaknesses are not having diverse products and also pricing strategy was not clear.



Option 1 would be the most viable for business as it satisfies al the decision criteria. The business will increase its contribution margin to around 14% if the room only sells out 40% of the time which is being super generous.


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Case_report_Tmas. (2019, Nov 23). Retrieved from https://studymoose.com/case-report-tmas-739-best-essay

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