Games Workshop 2022

Abstract

UK based Games Workshop (‘GW’), the world’s largest wargaming miniature manufacturer, sells plastic and resin miniatures, publications and licensees their Intellectual Property (IP) to generate profits. In 2015, GW underwent a prolonged period of financial difficulty which resulted in the replacement of their CEO. Kevin Rountree the newly appointed CEO was tasked with driving an aggressive business turnaround plan. Kevin Rountree launched an ambitious project which focused on a multi-vector approach. Profitability was the priority and GW optimised their loss-making retail business, expanded trade partner deals, streamlined product offerings, and leveraged operational gearing benefits. Appreciating branding, a 2017 global campaign rebranded retail stores to the more famous ‘Warhammer’ name to replicate the realities on the ground. As GW’s financial performance improved, GW invested into improving their digital footprint, expanding logistics capacity and improving manufacturing facilities, all in the face of fallout from the 2016 Brexit vote. In early 2020 the COVID-19 pandemic led to national lockdowns across GW’s core developed markets. Despite initial concerns the lockdowns and resulting furlough support schemes were to prove a boon as GW reported astounding growth as customers restricted to their homes aggressively invested in hobbies. At the conclusion of the case the protagonist is left with a dilemma. Following years of record growth (334% increase between 2015-22), financial growth was slowing, shares were down 50% from 1 year peak, and the wider economic situations were putting strain on supply lines and customer appetite, as lockdowns ended, the Ukraine war drove up energy prices, and the UK faced a growing cost of living crisis. Should Kevin Rountree persevere, or pursue a new strategy to rejuvenate growth? The case will provide deep insights from the perspective of strategy, business turnaround and transformation for organisations in the entertainment industry.

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