Blue Orb

Critical Issues

Based on our in-depth analysis of the current situation, we have identified the following critical issues and critical opportunities for Blue Orb Inc.:  Strategic Business Decision for Marketing Plan: -Traditional vs. Social Media/Online Media Marketing  Transition Path (from the research-oriented into a retail oriented business).

Situation Analysis

Pete McAlindon (CEO) and Mike Bowers (CMO) of Blue Orb were considering a new marketing campaign that would allow the company to penetrate the video game industry with its flagship product – SwitchBlade Pro. Presently, the product is in a transitional phase from an introductory to the growth phase, which often requires heavy promotional efforts in capturing additional market share (Exhibit 6). However, the company has cash available but the use is limited and Blue Orb is struggling to meet the demands of the investors (Exhibit 10). Videogame competitions were becoming increasingly popular as social events and the establishment of interest groups for gamers (Exhibit 7). Currently, Blue Orb is unable to allocate resources to support such promotional events and the effectiveness ratios for traditional methods are very low compared to online marketing methods (Exhibit 5). In regards, SwitchBlade offers a unique value proposition for gamers and these product features serve as points of differentiation (Exhibit 2). Additionally, transitioning from a research oriented business to a retail based company a critical opportunity lies for Blue Orb as the market trends for the video game industry is increasing (Exhibit 7 & 8).

Blue Orb Team 7

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At current subscription rates, the company was able to generate more than 1,100 subscribers and 15,000 registered users as of March 2009; this customer base is not big enough to generate enough profit for the company break even under the status quo given the current marketing strategies (Exhibit 5). However, the previous marketing campaign, launched in October...