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How will Games Workshop fair in the upcoming recession.

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Introduction

How will Games Workshop in St Albans fair in the upcoming recession? Games Workshop is a shop in the centre of town that specialises in selling Warhammer, small war figures that are collected, painted, and then played with in a war scenario. There are a wide variety of products in the store from space like robot figurines to vampires, and even a Lord of the Rings range. The wide range of products and flexibility of them are just a few reasons why games workshop is a massively successful business. This can be shown by the fact lasts years revenue was �111.5 million There are many reasons why games workshop may ever fail or succeed in the upcoming recession and in this essay I will go into this; firstly I gathered research that would help me answer the question, I took a survey and interviewed the manager. I also spoke to a family friend who has spent over �20,000 on warhammer over the course of his life. There are many reasons why games workshop will do well in the recession, firstly I will go into the location, Warhammer is a very expensive game, but St, Albans is a very wealthy area, this can be shown by looking at a study made by the office of national statistics, Average Salary UK �25,598 ...read more.

Middle

Tom Kirby has also expressed the reasons that the business will succeed as: '1. The health of the Games Workshop Hobby 2. The long-term growth credentials of the business 3. The market opportunity for our existing sales businesses 4. The capital infrastructure We have come to the end of our investment programme, which leaves the business seriously well invested.' All these points show that the company as a whole are taking precautions and are sure that they will succeed. Even with all of this there are many reasons why I believe the games workshop of st Albans will fail. For a start warhammer is very expensive, for what you get it is arguably greatly overpriced, in a recession people will not have as much money, and therefore will spend money on their needs instead of their luxuries, and people will also have to prioritise which luxuries and people may feel that warhammer is not as important as other things. After talking to a family friend who has been playing for years he provided another piece of evidence which could have a massive impact on the revenue and sales of games workshop, more than 3/4 of the �20,000 worth of warhammer has been bought on online auction houses. ...read more.

Conclusion

This is what I feel is the most important reason that games workshop will fail, people will not pay large amounts of money when they can get it cheaper online. This is why I believe games workshop will go into liquidation in the upcoming recession. In conclusion I believe that it is obvious to see that the games workshop in st Albans will fail, and I have collected and analyzed enough data to prove it. By Ashley Bryant Word Count: 1,345 Questionnaire: What year did games workshop open? Approximately 1995 How many people work here Only me, I am the manager How has games workshop been performing since the start of the recession? Very well actually our sales have been increasing What is the average age of people who come into the store? 10-25 Why did you feel the need to get rid of the other staff? Although I feel we are doing well, we were not getting enough sales in. We did not need that many people working for such a small shop. If we kept those staff we knew that our revenue might not outweigh the costs as greatly as we would like. Ultimately how do you feel you will fare in the upcoming recession? I like to think optimistically and I feel that we have enough loyal customers to get us through the tough times. ...read more.

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