The Features of Multigaming Organization Management in eSport

Stages of development of the digital entertainment industry. Problems of interaction of multi-user organizations and organizations involved in conventional sports. Acquaintance with the features of managing a multi-game organization in e-sports.

Рубрика Менеджмент и трудовые отношения
Вид дипломная работа
Язык английский
Дата добавления 01.12.2019
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The Features of Multigaming Organization Management in eSport

Introduction

The purpose of this work is to determine the structure of a multigaming organization, определить бизнес модель и провести анализ предприятия. The anticipated result of this work will be a list of recommendations for the management of a multi-gaming organization.

The basis for the data collection method for this work will be The resulting analysis will be interpreted for use in managing a multi-gaming company.

In process of work, the existing area of knowledge in this sphere will be expanded and refined. A white spot associated with the description of a multi-gaming organization will be filled, and a full definition of this тип организации will also be provided.

As a result, all market participants will benefit, potential employees will get a representation of the upcoming work and will be able to improve their skills, companies will be able to increase their efficiency and reduce risks, cyber-athletes will get a high-quality service in organizations, and ordinary viewers will receive more spectacular competition and improved advertising targeting.

50 years ago, the first video games appeared in the world, since then the industry has evolved along with the digital technology industry. The demand for games grew and their quality and functionality increased. The turning point in this development was the introduction of the ability to play while competing in real time with other people, this is determined the competitive direction of the industry. Since then, millions of teenagers and young people spend thousands of hours of their time to achieve mastery and win in the world competition. The field of computer competitions has begun to attract more investment and qualified personnel to organize and conduct tournaments.

Despite the dynamic development, eSports lags behind the kinds of sports that people are used to observe, since there are several factors restraining its development. The first of these factors is the social rejection of computer games as a serious thing. In modern psychological practice, there are terms such as “Gambling” and “Gaming addiction”. This vision of eSports causes serious consequences for the industry, since the desire of young gamers to become professionals is interpreted as a psychological deviation and condemned. This deprives existing leagues of potential stars and harms their monetization, which repels investors.

The next factor is white spots in the legislation, since there are no specific legal acts regulating relations in this area, which makes cyber-athletes and organizations not protected from fraud and can cause losses. This problem is typical both for Russia and for international practice.

There is also a serious lack of coverage of this field of activity in mass media, as well as a lack of scientific literature. The last factor directly affects the efficiency of organizations in this area as well as its attractiveness for investors. All this restrain the turnover in this area and reduces its economic effect for the state.

These factors are related to the youth of eSports, which began its development in 1993 and only in the last few years has become accepted in the world as a sports discipline, now it is a second-order Olympic discipline and is developing rapidly.

Today there is no precise definition and description of a multi-gaming organization in the professional literature covering the cyber sport market, despite the fact that this information is fundamental for immersion in cyber sports management. This work is designed to fill this gap in knowledge in this area.

The purpose of this work is to determine the structure of a multigaming organization, to analyze its business model and market position, as well as to study the preferences of the audience to make recommendations for the management of multigaming organizations, in order to minimize the risks for new companies in this market, as well as to optimize the work of existing ones.

To achieve this goal, in this paper will be analyzed the current situation in the industry, its trends and problems. Existing multigaming organizations will be analyzed to identify business model, organizational structure, the strengths and weaknesses of existing structures, potential development directions and key risks. Spectators of competitions and fans of teams will be investigated, this will allow organizations and sponsors to promote their brands most effectively, as well as create products oriented specifically to the existing audience.

First of all, in the work will be analyzed the content of public interviews of experts engaged in the market. During the analysis, the information will be structured in blocks according to the subject, and then used to describe the structure of the organization. Based on the structure of the organization and information about its business processes, a typical business model of a multi-gaming organization will be determined. After the data will be processed, a SWOT analysis will be conducted on the basis of the organization's structure and business model to identify its position in the market. Based on all the data obtained, a list of recommendations for the development strategy of the multi-gaming organization will be developed. At the same time, will be conducted a survey of the audience of one of the most popular cyber-sports disciplines - Dota 2. The results of the survey will be analyzed and used for the subsequent development of a list of recommendations for optimizing the organization's marketing campaign.

In this paper, eSports organizations, organizations involved in conducting events and controlling their implementation, cyber-athletes, as well as the spectators and fans will be investigated. The limitations of this work are the existing cybersport disciplines, the list of which changes over time, losing ones and acquiring others. This specificity of computer competitions makes the work relevant only as long as the disciplines described in it are valid. Also, the restriction of the audience survey is one segment, namely the audience of fans of one cyber-sports discipline, this decision was made due to the inability to distribute the survey for a sufficiently wide audience, so that the samples of all segments of the audience were representative due to the high segmentation of viewers characteristic of eSports.

The value of this work is determined by the development of this field of science in Russia and the world. The author aims to expand the knowledge and clarify existing research; thus, the work will be useful both for the scientific community, experts in the market, and for personnel preparing for work in this area.

1.Theoretical Background

First, to dive into this topic, it is needed to consider the prerequisites for the development of such a phenomenon as eSport. The fourth informational revolution of mankind, which can also be called the information-technological, is directly related to this. It occurred in the middle of the 20th century and in its course microprocessor technology appeared, which marked the beginning of human cyber-socialization. Pleshakov (2011), describes this phenomenon as a person's vital activity in cyberspace. As a result of this process, an “informational” person appeared. In modern conditions, such a person is described by the author as being in continuous connection to the Internet and cellular communication, living an active lifestyle there.

This phenomenon contributed to the emergence and development of the digital entertainment industry. The process of becoming an industry, Buyanova (2017) in her work conditionally subdivides into several stages. The first of which begins with the creation of gaming machines in 1966. Characteristic for this stage are the simplest monetization schemes consisting in paying for game time or for one game session. Gaming machines were stationary and located in public places. The possibility of competition was realized by comparing the achievements of players alternately playing on the same machine.

The next stage began in 1988, the main event is the creation of the first computer game where players could compete in real time, teaming up to 4 people. At this stage, the initial design of eSports competitions was determined.

The third stage characterized by increasing the availability of computers for people with an average income and increasing the possibilities for games development. At this stage appeared a new genre, first-person shooter. Also, in 1993, the first game in this genre appeared with an elaborated online component - Doom 2. At this stage cybersport began to appear in the form in which it exists now, were founded the first computer clubs in the world in which players could gather for tournaments.

The fourth stage is the logical development of the third, it is characterized by the globalization process. At this stage international competitions with prize funds appeared and the first was World Cyber Games in 2001. At this stage begins the global recognition of eSport as sports discipline.

It is necessary to clarify that within the framework of this classification considered only the development of competitive games in isolation from the general mass of the genres and themes of games aimed at entertaining one person or telling a story. This is an important part of the industry, but in the framework of this work it does not represent value.

In the process of passing the above stages, several terms were formed. One of the problems of this field of knowledge is the lack of unified definitions in both Russian and international practice. (Sutirina, 2018) Nevertheless, the definition of things mentioned in this work should be given.

The term of paramount importance that has already been encountered in work is eSport - Russian Esports Federation (RESF, n.d.) gives the following definition. eSports is a type of competitive activity and special practice of preparing for competitions based on computer and/or video games, where the game provides an environment for interaction of objects of control, providing equal conditions of competition of a person with a person or a team with a team.

It is also worth giving a definition to the words “gaming” and “gamer”, MсGonigal (2011) in his book gives the following definition - a broad concept that describes the fascination with games, but in modern practice means the fascination with computer games. Gamers are active computer game players.

Also, not every game can be considered an eSports discipline. In accordance with the provisions of the RESF, a computer game must meet several requirements, it must have a competitive element, be plotless, short-sessional, and provide players with initially equal conditions.

The existing disciplines are also defined in the list of the RESF, they can be divided into several genres with similar features. Such classification is given by the Ivanova (2017), describing such genres as MOBA - a multiplayer online battle arena. The main features of this genre are the presence of an isometric battlefield on which players must take control of the proposed characters and play their role in the team in order to destroy enemy buildings. The next in the classification is the Real Time Strategy, this genre is similar to MOBA, but has several differences, only two players participate in the match, they control a multitude of combat units, collect conditional resources and rebuild their own buildings, the goal in the game is the same to what has been described above. The third typical for eSports disciplines genre is first person shooter. In this genre, there are specific mechanics of aiming and shooting simulation, on the basis the game is built. Also, eSports disciplines are simulators, the essence of which is to simulate actions similar to real ones in virtual reality, according to similar rules, examples are football or card games.

For all the genres of disciplines described above, there are professional teams, organizations containing these teams, tournaments are held and broadcasted in several languages. According to the analytical agency ESC (Esports Charts, n.d.) at January 2019, eSports events have 190 million active online viewers. This is a huge audience that creates a profitable advertising market, buys merchandise of teams, tickets to tournaments and online views. Thus, Turbin (2015) defines eSport as a new sphere of economic relations at the intersection of sports, media business and the Internet.

As a result, the market of services emerged in this area, serving it and supporting its functioning. Services in this market were classified by Voskolovich and Khaidarov (2016). Globally, services are divided into four main areas of activity of the companies providing them. The first group of companies serves computer games, this includes the sale of games and additional content, attributes, as well as customer support. The second group serves the sports component, including bets, forecasts, fantasy leagues, improving conditions for teams and their support in any matter, as well as organizing and conducting events. The third group is responsible for equipment and platforms, provides the necessary equipment, provides platforms for launching virtual events, as well as their technical support. The last group includes media companies that organize broadcasts and analytics of events, create and develop an audience, and provide additional services for the monetization of games.

The activities of any of these companies are accompanied by many additional services, so the eSporting event taking place in the city has a similar economic effect with a large-scale sporting event.

Such a scale of development has led to the fact that independent teams have lost their relevance and large eSports brands, so-called multigaming companies, have begun their development. These are organizations signing contracts at once with several independent teams, thus uniting players from several disciplines under one name. This allows them to expand fan base and presence in the media space. Both these factors increase the attractiveness of such an organization for sponsors and investors. Based on such organizations, regular leagues and tournaments are subsequently organized. Examples of such organizations are in the CIS segment: NaVi, Virtus.pro, GAMBIT. Team Liquid, Cloud9, Evil Geniuses and LGD successfully perform on the international segment. (“Top 10 eSports Teams, Earnings, and Salaries”, n.d.)

For a developed multi-gaming organization there are many ways to monetize. The main ones are income from sponsors, advertising on their media resources, merchandise sales, collaborations with manufacturers of peripheral products for computers, as well as the prize funds of tournaments in which the existing teams participate. The main cash flows are income from sponsors and online advertising.

For the organizers of the competition and their service companies, the biggest revenue streams are also the sponsors, as well as the bets and sales of tickets and additional content for viewing. (Voskolovich & Khaidarov, 2016)

Currently, eSports has a high rate of development, in article by SHtan'ko (2017), author relying on data from SuperData Research (n.d) indicates that at the time of 2017, the game broadcast segment is estimated at $ 612 million and has an audience of 134 million viewers. Analysts believe that in the long-term perspective, indicators will only grow by 30% over the next 5 years. According to the same agency, the profit of the game League of Legends in 2014 was estimated at $ 1 billion. While the game is distributed on a free basis, these funds were obtained by selling in-game items.

Speaking specifically about the development of cyber-sports, the main global Dota 2 tournament for 6 years of its existence since 2011 has increased the prize fund from $ 1 million to $ 21 million in 2016. In 2018, the prize fund reached $ 25 million.

For 12 years, the main sponsors in eSports have been companies producing computer equipment and peripheral devices, a significant investor here was Samsung. The company sponsored the first international competitions of World Cyber Games, invested in the team of League of Legends. Asus and Intel organized the first tournaments in Russia. Also, telecommunications companies such as Tele2, Beeline and Megafon invested in organizing tournaments in the CIS.

Now, major businessmen, such as Warren Buffet, Jeff Bezos, Alisher Usmanov, Yuri Milner, invest in eSports. According to Newzoo (2017), in 2017, various brands spent $ 325 million on sponsorship and advertising in computer sports.

Based on the foregoing, it can be concluded that eSport now has a growing development trend, now it is already world recognized by sports institutions, states, people and entrepreneurs. But nevertheless, scientific works that consider this phenomenon from an economic and managerial point of view, as well as qualified managers are not enough now, which creates risks for new players to enter this market and restrain the development of existing ones. It is necessary to describe the business model and organizational structure of a multi-gaming organization, define customer segments and develop a strategy for the most effective development in this area.

2.Methodology

The main method of data collection for this work will be analysis of public interviews of experts involved in this field. There will also be a study of the audience of cyber-sports competitions by a one-time online survey.

The first step is to collect interviews with experts which are publicly available. This method was chosen based on the specifics of the activities of multigaming organizations, which should to be public to retain the audience and increase its loyalty. Key employees of the organization periodically give detailed interviews to correspondents of news portals and thematic communities.

As a sample for the analysis, 11 interviews were selected, which were taken in the last two years from representatives of various multi-gaming organizations successfully operating in the market. As experts were:

a. CEO of the Ukrainian organization Natus Vincere Yevgeny Zolotarev

b. Former CEO Alexander Kokhanovsky. With which in turn is the founder of the organization.

c. David Dashtoyan, CEO of the Forward Gaming organization operating in the North American market.

d. CEO of the Russian organization Vega Squadron Alexey Kondakov.

e. Alexander Solomonov, sports director of the Russian organization Team Empire.

f. General Manager of the Russian organization of Virtus.Pro, Roman Dvoryankin.

During the analysis, the content of the interview data was structured according to the blocks of competencies necessary for the subsequent description of the company. Excess information that has no value to the study was filtered. On the basis of the interview descriptions obtained, data were compiled to gain an understanding of the market situation. As a result of this analysis, the internal structure of the organization was derived and visualized, and its business model was described using the canvas.

Interview Blocks

a. Staffing and organization structure

b. Work with athletes

c. Development of sports department

d. Finance

e. Work with the audience

The last stage of data collection is an anonymous survey of cybersports spectators of competition in the discipline of Dota 2. Questions for the survey you can find in the Appendix 1. It will be held with the help of Google-form, which will be distributed in the thematic communities and on the fan pages of existing players. Thus, the survey will allow to study in detail the preferences of fans of one of the most popular cyber-sports disciplines, as well as the attitude of this audience to other disciplines.

The questionnaire will include questions about age, income level, daily routine, hobbies, preferred disciplines and media that are used to obtain relevant information about eSport. The result of the survey will be an array of data through which a list of recommendations for the company's marketing activities will be prepared. This stage is important because most of the multi-gaming organization's revenues are from the promotion of sponsors and online advertising, the obtained recommendations will help optimize the company's marketing will increase the conversion and make the organization more attractive to sponsors, which will help to increase its revenues.

After that, data will be used on terms of analysis of the industry using the Porter's five forces model. This will allow to analyze the position of such type of organization in the market using SWOT analysis. In result will be developed the main problems and perspectives, on the basis on which will be produced the set of recommendations.

In the process of preparing for the analysis, oral interview descriptions will be produced by question blocks for each group of interviews. Then a comparative analysis of interviews within groups will take place in order to obtain the most accurate data that are true for a wide range of representatives of the surveyed group of market participants. The results of the online survey will be collected in one sample on the basis of which the main age groups, the most important topics, the income level of the audience, the best time to publish advertisements and the best places to place will be determined. The resulting analysis will be interpreted for use in managing a multi-gaming company.

3.General characteristics

The object of this study is an organization functioning in the cyber-sports market, containing compositions of active players in several game disciplines and setting itself the goal of monetizing the sporting achievements of its players. Today this type of organization is under-researched, there is a lack of professional literature describing the structure and business model, especially the management of these organizations.

To describe the activities of this type of organization, an analysis was conducted of the content of interviews with experts involved in this market, namely with CEOs and sports directors of major cyber-sports organizations.

3.1 Staff composition and structure of the organization

Appendix 2 Figure 1 Organizational structure of multigaming organization

The staffing of the organization should be considered in the context of its structure. Speaking about the personnel structure of the organization there are both typical positions and specific ones. The typical vacancies of an organization include the CEO, his vision includes the operational processes within the organization, the interaction between its departments, the development of financial strategy, it reports directly to the owners of the organization. (Appendix 3) (Appendix 4)

The HR manager is engaged in staff recruitment for formation of departments, important for the organization, as a sales department, a legal department, and a marketing department. Employees of the sales department carry out the sale of attributes, merchandise and other brand goods, as well as partner brands in the company's store, which can be situated on the club base, be spotted at tournaments and other events. (Appendix 3) (Appendix 11)

The legal department staff develops and improves contracts that the company signs with players, as contracts must be personalized for each player and minimize the risk of loss for both parties. Contracts are an important part of the organization's work, because the players are part of the capital, they attract the audience, promote sponsors, interact with the fans of the organization, at the same time they have to show sport performance. To control and stimulate these processes, the contract must be drafted correctly, as well as thought out in a temporary perspective, since the esports is actively developing. (Appendix 3)

Specific to multigaming is the presence of a visa agent. Since cyber-sport is an international discipline, most offline activities take place in different countries, so players need to get a lot of visas, this activity without an experienced agent would take players time which gamer should spend on training and also create the risk of not receiving a visa and not leaving gamer from the country. For cyber sports, which has no substitute players in its structure, this is critical. (Appendix 10)

The marketing department is the most important for the organization in terms of monetization. Employees of this department are engaged in the promotion of this brand both among fans and among sponsors. These two areas are divided, because the audience and sponsors are interested in various indicators of the organization, which will be considered in the future. SMM and PR are important parts of this department, since the organization is public and its profitability directly depends on its presence in the media space. To strengthen these positions, organizations get correspondents who travel with the teams to tournaments and cover them, as well as news editors for the organization's blogs. (Appendix 5)

Further it is necessary to consider the sports department specific to this type of organizations. Here, an organization may have departments for each cyber-sports discipline it deals with, departments may differ in their structure from each other depending on the requirements of the discipline or players, but this analysis will present a typical department that can be implemented in any discipline with its subsequent improvement.

The sports director coordinates the work of all departments, his responsibilities include making decisions on opening departments for new disciplines, as well as optimizing the work of existing departments, creating communication between them and the management. The sports director reports to the CEO. (Appendix 3)

The discipline department includes the team manager, he is engaged in the selection of the composition of players and the organization of training in collaboration with the coach, the organization of trips and maintenance of athletes at the tournament. As part of this activity, he deals with the accommodation of athletes, food, communication with the organizers of competition, organization of communication with fans and the solution of force majeure situations. Also, the sports director is engaged in the search and equipment of the training base for athletes. (Appendix 6) (Appendix 7)

Also, team has a coaching staff, which consists of a coach, analyst and psychologist. The coach is engaged in the selection of players in the team, the development of training programs, determines the priority and training tournaments, solves conflict and crisis situations in the composition. The analyst works in tandem with the coach and collects statistical data about the players, their strengths and weaknesses, analyzes the strategies of opponents, determines the current trends in the discipline, collects any information necessary for the coach. A psychologist helps athletes to relieve tension and build interaction with teammates. (Appendix 6) (Appendix 11)

3.2 Work with athletes

The next block is about work with athletes. This activity is one of the fundamental factors for the organization along with marketing. The main areas of interest there were the player selection process and the player control system.

Amateur teams, as well as other organizations, are used as channels to search for new players. In the issue of scouting, cyber-sport has learned a lot from traditional sports and less known organizations often become donors for more promoted brands. (Appendix 4)

The process of selecting players is divided into two types. The selection of the composition of the team for new discipline and the selection of players in the existing team, as the technique here is different. For the initial entry into a new discipline, organization should pay attention to entire teams of players without contracts, since in such a case, the expected results of the squad can be more accurately predicted. A team that plays for a long period of time is preferred based on their statistical indicators are analyzed. An important factor for the analysis is the crisis management of the team, organization should pay attention to the team recession periods, and how it comes out of them. This will make it possible to understand how the team will carry a cardinal change of environment and an increase in psychological pressure due to its integration into the organization's structure. (Appendix 11)

When the squad already exists, there is a need to rotate the players. This may occur due to internal disagreements, lack of sport achievements, initiated by the coaching staff. In this case, the selection procedure is more difficult, when choosing a candidate, organization should listen to the players and the coach, pay attention to how this person will affect communication within the team. The initial selection is based on statistical indicators, then candidates are invited for interviews to identify their personal qualities, the most important qualities are strategic and tactical thinking. Also, an important factor is the player's personal brand and disposition to its development. Since this will be an important tool to attract fan audience. (Appendix 3) (Appendix 6) (Appendix 8)

To control the activities of players, contracts provide for a system of fines and warnings for disciplinary offenses. Also, psychologists and team managers motivate players to engage in the media component of their careers, as it is mutually beneficial for both players and organizations. Often, contracts provide players with personal sponsors. (Appendix 6)

3.3 Development of sports department

The next block of analysis concerns the organization's strategy in opening departments for new disciplines. First of all, it is necessary to analyze the competitive environment in this discipline. If the scene is already formed, there are clear favorites and a developed media component, then the occupation of leading competitive positions will require significant financial costs, since the transfer value of the players will be overestimated. Team will have to show excellent results from the start. Despite the benefits of this direction, the activity is fraught with great risks. (Appendix 7)

For this reason, developing organizations are paying attention to new disciplines and it is possible to distinguish a certain expertise in the selection of a potentially profitable direction for development. When choosing a discipline, organization need to focus on such factors as in-game balance, entertainment for spectators, tournament system and modules for the monetization of teams. (Appendix 8)

The tournament system, for the organization is necessary the developer support of the sports component of its game and development of an optimal tournament program. It is highly recommended not to engage in disciplines with an arrhythmic tournament schedule, under which players get paid for a long time without playing anywhere. At the same time, the number of players in a team plays an important role, the potential profit of this direction should pay back the maintenance of all team members. (Appendix 9)

It is also important to take into account the developer's policy regarding sponsorship agreements, some developers limit the number of sponsors for teams participating in their tournaments, this also affects the monetization of the organization's activities. (Appendix 6)

To solve such a question, there is a practice of developer dialogue with organizations, in which organizations can get an idea of the developer's plans, and the developer can get feedback to improve the sports component of their game. (Appendix 6) (Appendix 5)

Also, when analyzing the sports component of the game, an important factor for the organization is the audience that watches these events. Therefore, tournaments should have a developed system of broadcasts, the statistics of which are also being studied. Based on this statistic, we can assume the organization's income from sponsorship agreements. When analyzing it, it is important to consider the geography of views, since viewers from different countries have different purchasing power and the profitability of sponsorship agreements will depend on it. (Appendix 6)

3.4 Finance

The next block concerns the financial activities of the organization. The main earning channels for the organization are sponsorship payments, these make up about 80 percent of the income, there are also royalties, merchandise and a share from the prize money. As a result of this distribution, the advantage of working with sponsors becomes obvious, and it becomes the priority for the organization. (Appendix 8). To attract sponsors, it is important to take into account the indicators that sponsors pay attention to. Sponsors are interested in the stability of the performance of the organization's structures and its presence in the media space, its conversion rates, namely traffic on the organization's resources on the Internet, referral links, clicks. As well as the internal structure of the organization, the effectiveness of its marketing and sales departments. (Appendix 11)

Also, because of the large influence of sponsors on an organization's income -- income becomes strongly dependent on the purchasing power of the population in the regions where the organization's audience is located. As the price of transition on advertising links depends on purchasing power. (Appendix 5)

Recently, more and more countries recognize cyber-sport as a sport, which allows organizations to successfully attract investment.

3.5 Work with the audience

The next block concerns the work of an organization with an audience of its fans. An important part of this activity is the name. The choice of the name takes place according to a specific algorithm. First of all, the name should be clear to an international audience for the development of a fan base in all regions. The same name should be neutral so as not to scare away sponsors. Since most of the organization's activities take place on the Internet, the chosen name should have a free domain name, as well as a url on social networks. (Appendix 5)

When the name of the organization is already chosen, sporting achievements are needed to attract the audience, they directly affect the development of the fan base. To expand the organization's existing audience, it is important to maintain close contact with the fan base.

The organization's activities are covered in video blogs and news from tournaments, training camps, interviews with players and members of the organization. Also, to increase the presence of the organization in the media space, live broadcasts of players are conducted, and non-professional streamers are hired, who are more engaged in working with the audience than training.

Organizations with a history producing of documentary films about their activities. Also, in social networks take place interactive promotions, such as contests and flash mobs. (Appendix 10)

4.Audience survey

To determine the preferences of the audience, a one-time individual online survey of 550 respondents was conducted. The survey included 9 questions, 4 of which have multiple-choice, 1 question was open. A list of questions can be found in the Appendix 11.

Since the survey is aimed at identifying features of the DOTA 2 cyber-sports discipline audience, the sample consisted of people from thematic gaming communities and viewers of game broadcasts.

Appendix 12 Figure 1

Speaking about the gender and age structure of the sample, analysis of the survey results showed that the main 94.9% of the audience of this discipline is between 12 and 25 years old. At the same time, most, 53% are minors. Also, there is an absolute dominance of the male gender 96%, 2.3% women.

Appendix 12 Figure 2

To determine the level of income were used 4 categories. The members of the first category defined their wealth as “I live extremely economically, enough for daily expenses, but buying clothes is already a difficulty” the survey suggests that the income of members of these categories is at the level of the minimum wage. The second category is defined as “There is enough for food and clothing, but the purchase of large household appliances without recourse to the loan is problematic” it is assumed that members of this category have an income equal to the average wage in their region, the third and fourth categories are defined as “Overall provided , but I can not afford expensive acquisitions (travel, car, etc.) without recourse to a loan or a pre-accumulated amount” and “Well provided (a), I can easily afford to buy a car or a healthy vacation ”, the income of members of this category presumably exceeds the average salary in their region.

Appendix 12 Figure 3

The largest share of respondents, 45.4% belong to the third category, 34.8% to the second, 15.8% to the first, and only 4% of the respondents identified themselves to the fourth, premium category. Thus, the prevalence of middle-income respondents is observed.

Appendix 12 Figure 4

Speaking about the occupation of the audience, 83.6% of the respondents receive education. 58.1% receive secondary education, 25.5% higher education. 16.4% have stable sources of income.

Appendix 12 Figure 5

The survey revealed disciplines that are interesting to the respondents. In addition to DOTA 2, the following subjects are more interesting to the audience: CS GO, which was noted by 33.3% of respondents, Hearthstone 10.9%, PUBG 10.4%.

Appendix 12 Figure 6

The following bar chart shows the channels people use to get information about the discipline. Video content in this distribution prevails. 87.1% of respondents watch broadcasts, 78.7% view topical videos, 59.7% are interested in analytics of the cyber sports scene and matches, 50.5% follow the teams and players blogs and 31.1% study additional materials in text format. The least popular types of involvement were those requiring physical presence, such as participation in tournaments of 14.9%, attendance of tournaments 7.1% and attendance of thematic meetings 3.5%.

Appendix 12 Figure 7

Since the main channels of engaging the audience are located on the Internet, the relevance of questions about the timing of the placement of content and its placement sites is increasing. As a result of the survey, it was revealed that half of the respondents view cyber-sports-related content from 16.00 to 23.59, 47.9% of the total number of respondents from 16.00 to 19.59, and 53.2% from 20.00 to 23.59. Also, a significant part of the audience takes to watch the night and daytime, while the early morning period has minimum popularity, 29.1% from 00.00 to 2.59 and 26% from 12.00 to 15.59, while only 19.3% of respondents view content in the period from 3.00 to 6.59 and 17.1% in the period from 7.00 to 11.59.

Appendix 12 Figure 8

Regarding the sites used by respondents to obtain information, the trend of prevalence of video content persists. 96.4% of respondents use YouTube's video hosting for information, 78.0% watch live broadcasts on the Twitch streaming service, and social networks also use 57.9% of the total number of respondents. 20.2% use news portals, 11.5% sites of cyber-sports organizations, and 10.2% of micro-blogs on Twitter are much less popular.

5.Business model of the organization

Appendix 13 Table 1

Based on the data obtained in the interview, it is possible to get an idea of ??the business model of the organization. For its description was used canvas. The segmentation of the organization's clients is multilateral, since the organization serves two interconnected consumer segments - sponsors and viewers of cyber-sports events. For the audience, it is important to be able to associate themselves with the brand of the organization, for this they require the organization of sporting achievements and active interaction with the audience. Sponsors see their goal to promote a brand or certain goods and services, the stability of the organization's work, its structure is important for the sponsor. Also for the sponsor is important audience of fans of the organization and spectators of tournaments in which the organization performs and how the organization works with this audience, its conversion rates.

To attract sponsors, an organization must stand out with a strong promoted brand in a relatively new and actively gaining popularity industry. Also, close contact of the organization with its audience guarantees the sponsor a large conversion for its advertising. At the same time, sporting achievements, brand management of the organization and personal brands of players are necessary to attract fans. To keep the audience organization, use close interaction with it.

Channels for interaction with the audience are formed due to the presence of the organization in the media space, interaction with fans occurs via the Internet, as well as at physical outlets and events. As a result of this activity, merchandising products of the organization are sold, the value of which for fans is determined by brand attachment. The organization interacts with sponsors through negotiations, during which information is exchanged about the structure of the organization, its financial indicators, the structure of its audience. As a result, a service contract is concluded on a contract basis.

Talking about the relationship of the organization with customers. Relationships with sponsors occur individually for each organization, with the result that sponsor advertising campaigns are maximally optimized for the specifics of the organization and its audience, this approach allows, through flexibility, to increase marketing efficiency. Relationships with a fan audience are different depending on the channel through which they occur. The purchase of products on the organization's website or an affiliate online store is automated, while at physical outlets the interaction is personal. The organization also develops interaction with fans through the formation of the community, preparing news and blogs about the activities of the organization, signing sessions and interviews with players and members of the organization.

The main revenue streams of an organization are sponsorship payments for contracts to promote their brand. This flow amounts to 80% of the total income of the organization and directly depends on the presence of the organization in the media space and its audience. There is also a stream of royalty payments for using the organization's brand and selling merchandise. The prize share is the organization's smallest income stream.

The key resources of this type of organization are human and intellectual resources. Human resources include employees of the organization who are engaged in the development of sports and marketing activities. Players are both tools for attracting audiences and organizations' investments, since in recent years, a transfer market has emerged in cyber-sports. The most important resource of the organization, on which its income directly depends on, is the audience of fans. The intellectual resources include the brand and electronic platforms used to promote it, as well as the training and scouting techniques of the organization. Material resources include real estate, such as the office of the organization, the players training base and retail outlets.

The main activities are maintaining relationships with partners and maintaining close contact with the audience, this activity contributes to the stabilization of the financial flow. To increase it, the organization is engaged in the selection and training of new players, promotion of the organization's brand in the media space. As well as the development and production of merchandise.

To maintain and develop its activities, the organization works closely with such partners as game developers, these relationships allow it to optimize the development strategy of the sports field by receiving data directly from the original source, as well as working closely with the organizers of the tournaments whose platforms are used to promote the organization's brand and its sponsors. Also in matters of brand promotion, the organization works closely with the administration of Internet resources used to interact with the audience. For the development of merchandise trade organization appeals to manufacturers and delivery services. Also, in connection with the acceptance of cyber-sports as a sports discipline, active cooperation is being developed by organizations with developed media holdings to attract investment.

The main costs are the costs of brand promotion, as well as staff remuneration.

6. Porter 5-force model

On the basis of the identified features of the business model of the multi-gaming organization and the subsequent SWOT analysis, the industry should be analyzed using the 5 competitive forces model of Michael Porter. This model must be adopted for the application and the cyber sport industry. In particular, instead of suppliers and buyer in the framework of a multi-gaming organization, it will be much more effective to analyze the influence of customers and consumers of advertising content.

In this way, this work will analyze the impact on the industry of such forces as: the invasion of new players, the market power of customers, the market power of suppliers, the emergence of substitute services, as well as intra-industry competition.

Speaking about the threat of invasion of new players, first of all should be noted such an important factor as the low entry threshold for new organizations. Due to the large segmentation of the market and the constant appearance of new disciplines there is a chance of occupying a new niche without large financial expenses, which will allow the new organization to gain an audience of fans and take leading positions in this niche. The impact of this factor is estimated as high.

Also, activity in this area does not have constant high costs, organizations developing in one discipline are able to function without real estate and attract remote workers for its business processes. The impact of this factor is high.

Information technologies are used as channels of access to the target audience in the market, especially information resources located on the Internet. The specificity of these technologies is the low cost of attracting an audience. But for a multi-gaming organization, attracting an audience is impossible in the absence of sporting achievements, which makes attracting an audience in developed disciplines difficult for new players. As a result, the influence of this factor can be estimated as medium.

As for the government's policy in regulating this industry, institutions don't have a specific political course, because the industry is relatively young and has just begun positioning itself alongside traditional sports. As a result, in the future there is a possibility of the emergence of programs to support and develop new organizations. Thus, this factor is in the intermediate period and its influence can be estimated as an average.

Additional threats to the development of new organizations also include the fact that large brands with a large audience of fans and monetization are able to lure or buy out the players from the organization, depriving it of the main tool of audience attraction. As a result, the activity of the new player in the market will be under threat.

Considering the fact that the cyber-sports industry is developing at high rates, the threat level for new players to enter this market can be generally rated as high.

The next is consumer power. In this case, we are talking about consumers of advertising content, since it is the income from this type of activity that brings the greatest income to organizations in this market.

The situation with consumers in this industry differs, for example, from consumers in the market of physical products, since in fact, sales in its classical sense does not occur. The organization's activity can be defined as mediation in the financial operations of its sponsors, since the organization's income depends on the volume of these operations directly.

As a result, customer satisfaction with the quality of advertising content and the brand that orders promotion of this content is an important factor. Working with unreliable sponsors, as well as sponsors with a bad reputation, the risk of an organization losing an audience is high.

The main factors influencing the development of the audience of advertising content consumers and their retention are sport achievements and the work of the marketing department, as a result of which, during crisis periods in the organization's teams, the risk of audience loss increases. As a result, the influence of this force can be assessed as high.

The next force is the influence of advertising content customers, currently the number of companies is increasing, revealing the potential of sponsorship in cyber-sports, as it is a fairly cheap way of promotion its proposal to the target audience regarding other sports. As a result, there is no shortage of suppliers in the market. Consequently, the influence of this factor is low.

Advertising content cannot also be limited in volume, resulting in a reduced risk of a sudden termination of relations with the customer.

...

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