GameStop Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION:

GameStop started business initially as a software retailer in Texas, Dallas. Initially, its name was Babbage`s. The company was acquired, and merged several times before finally settling in the hands of Funco. The company later changed its name to Gamestop Inc. and still operates by this name in the industry.

The company has transformed, developed and expanded enormously since it entered in the gaming and software industry. The video and pc gaming industry in the U.S. is a lucrative $11 billion dollar market and that of Europe is roughly $ 9 billion. These markets are constantly growing and developing and these are the customer markets that the Gamestop focuses on. The company has over 4000 retail stores that operate in these territories. The organization has a market share of roughly 20% in the U.S. and approximately 10% of the Europe gaming industry.

Video game industry is fast expanding and transforming with GameStop being the largest retailer. It sells both previous and latest games and systems. Today, the company is the most dominant and leading video games and console retailer of the industry with a phenomenal growth rate. The company`s debt equity is relatively low and it is a positive for the management.

The expansion and advancement of the video gaming industry and with the constant sustaining of older consoles is an excellent factor of the industry. The cheap prices of the older consoles still make them attractive and demand able and so will their video games and accessories. This has allowed the company to still pursue and promote its older inventories while enhancing the latest collections as the latest consoles are frequently flooding the market. All of these are healthy signs that provide opportunities for the business.

ANALYSIS:

VALUE PROPOSITION AND MARKET SHARE

The video and pc gaming industry in the U.S. is a lucrative $11 billion dollar market and that of Europe is roughly $ 9 billion. These markets are constantly growing and developing and these are the customer markets in which Gamestop focuses on. The company has expanded enormously during the period and diversified its range and base of products that it offers to its customers. It now runs roughly more than 4000 retail stores worldwide

This diversification of products the company offers is based upon the markets and countries it operates in. The products and systems they offer in their retail stores are based upon the local demand in that market. The company’s range of products varies from new and old video games and pc games and it also offers new and used consoles to its customers at its retail stores.

GAMESTOP SEGMENT

The objective segment for GameStop is a combination of three proportion of the market. This proportion comprises of regular and enthusiastic gamers make up roughly 40% of the market in which the business operates. These addicted and dedicated gamers play games for long durations and mostly every day in the week. They prefer types like action games, character playing games, sports and stimulation games. They generally play using various consoles and fancy latest games and systems.

The second segment of the market consists of social gamers and they make up for more or less 30% of the market population. In addition, they prefer playing video games for a shorter period of time for around four to five times a week.Mostly, they play sport and fighting games by using one or two consoles. The last segment consists of casual gamers who account for 28% of the gamers and play video games twice a week on an average for comparatively shorter periods. The preference of the company is on the strategic as well as puzzles and games by using single console..........

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