GameStop is the world's largest retailer of video games that operates in around 4,860 stores in the U.S., Europe, New Zealand, Canada, and Australia. First coming to life as Babbage's in 1984, the company went through a series of mergers and acquisitions to itself being acquired by Barnes & Noble in 1999.
As of 2021, GameStop is not making profits anymore, and its income is going down year after year. And they do not seem to have done much to adapt their business model to the new online gaming paradigm. They had a nice performance from their launch in 2002 to the financial crisis of 2008-2009.
|Logo since 2000|
|Parent||NeoStar Retail Group (1994–1996) Babbage's Etc. (1996–1999) Barnes & Noble (1999–2004)|
|Subsidiaries||Babbage's EB Games EB Games Australia Game Informer Geeknet Micromania-Zing Rhino Video Games ThinkGeek Zing Pop Culture Australia Zing Marketplace|
|GS||Gamestop (video game store)|
|GS||General Secretary (in colleges of India)|
Answer: While GameStop finds some online competition in companies like Sony, Microsoft, and Nintendo, their largest competitors are those that have retail stores and a large online presence. Walmart, Best Buy, and Target are some of GameStop's largest competitors.
The general public holds a substantial 54% stake in GameStop, suggesting it is a fairly popular stock. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
|Characteristic||Number of stores|
|1. Inability to curb fraudulent stock trading practices 2. Corruption in the gaming industry||1. Exchange rate fluctuations affecting all components of business 2. Video game sales moving up across the country|
Below are the Strengths in the SWOT Analysis of GameStop:
Sep 5, 2021
GameStop's target customer is a young male with considerable free time. The company's stores have become a meeting point for these customers to socialize and share their views on videogames. GameStop has also become a place where even non-customers socialize.
GameStop's biggest asset to leverage is its customers. Building a value proposition around this group will give GameStop an edge in the gaming market, transforming their business model from a traditional retail model to a customer-focused e-commerce business model, like Amazon with Amazon Prime.
The gaming retailer says it's transitioning to become a more general technology company. GameStop has laid out its future ambitions, and it's not all about selling video games. The retailer said as part of its latest earnings release that it is taking steps to evolve to become a more general technology company.
GameStop operates a mass-market business model with no significant variation between customer segments. That is, the company markets itself to any consumer seeking video games and related products.
When GameStop contemplates making an acquisition it will look at four areas of its own business, which Bartel calls GameStop's "core competencies": the company's experience in retail and real estate alongside its buy-sell-trade model and PowerUp rewards program that allows customers to take accumulate points through ...
GameStop's stock volatility has been on a roller coaster since then, but a sustainable future may be on the horizon. In recent months, GameStop has begun making strategic hires to reinvent itself as a major ecommerce player — namely by tapping former Amazon execs to help it lead the charge.
Core competencies are the defining characteristics that make a business or an individual stand out from the competition. Identifying and exploiting core competencies is seen as important for a new business making its mark or an established company trying to stay competitive.
McDonald's core competency is providing convenience when people need and want to eat fast food at prices that are competitive and provide best value for the customer's money.
Different Types of Competency
|Teamwork||Supports group decisions and puts group success ahead of own goals|
|Problem Solving||Analyses problems by obtaining and organising relevant information|
|Customer Service||Is approachable and willing to help others|
Nov 1, 2021