GameStop

GameStop
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Introduction
GameStop targets a broad audience with both PC software entertainment software new and used video games. The company purchases products from various gaming suppliers, including, Nintendo, Microsoft, Sony and others. As such, the company’s strategic management has used diverse tactics over the years to improve and maintain its position as one of the leading retailers of video game products as well as the entertainment software. In order to continuously improve value in the company the management is strict on recruiting since the gaming industry changes rapidly over time. In any case, the customer centered aspect of the business has been vital to the growth of the company’s brand, ensuring success for the company at various levels. This paper focuses on Game Stop’s history and background, use of business level strategies as well as high level strategies applicable in light of the environment analysis.
History and background of GameStop
GameStop Corp is also a top retailer for toys as well as new, old software, and with a wide variety of retail stores in 49 states in the U. S, the company is well positioned to bring their goods closers to the customers while increasing customer awareness. As such, shopping centers and shopping mills are important locations for the company because of the benefits of the location in improving the company’s marketing strategies. Additionally, the company also has an e-commerce platform as well as a magazine in order to reach out to potential and existing customers. The company started in the early1980’s, whereby McCurry and Kusin focused on four broad strategies to improve sales of the start up. As such, the relied on updating products over time, a competitive pricing system, and flexible store design and non-commissioned staff who approached customers without relying on technical jargon (Reference business.com). However, during the period the company faced losses over time, and hence there was a need to change strategy.
The 1990’s was a turning point for the company, with new outlets being opened, but the low profit margin strategy meant that the stock value plummeted as did the company’s earnings in the early 1990 (Reference business.com). To avoid further lossess on the company’s financial resources, there was a scale back on operations, while also utilizing cost control measures. Additionally, the establishment of a new computerized system improved operations. In 1994, the company merged with Software ETC to form NeoStar Retail group ., but the other retail as well as computer stores and electronic stores were competitive, meaning that growth for the company was limited (Reference business.com). NeoStar later filed for bankruptcy in 1996, but fortunes changed with the company rebranding from 2002 as an independent Game Stop Corp in 2002, with the company’s stores mainly located in shopping strips, and further expansion into overseas market has seen the company further grow since then.
GameStop’s Original brand position and key business-level strategies
The business level strategies focus on the actions undertaken by firms in order to gain a competitive advantage through focusing on core competencies for specific product markets. GameStop has mostly relied on broad differentiation as a business level strategy compared to other competitors who deal in a narrow range of games. As such, the wide selection of new and old video games gives the competitor a competitive advantage, while focusing on different categories of consumers. On the other hand, some of the retailers mostly focus on seasonal gift givers. In any case, those who deal in used video games are less likely to attract the video gaming enthusiasts. Hence, the company’s devotion to casual gamers, seasonal gift givers and game enthusiasts differentiates the company form the competitors. In any case, the exchange policy also drives sales when there are newly released games, as more customers can enjoy gaming.
Another strategy utilized by the company is the continued reliance on growth strategies that have been proved effective. As such, more stores are opened to ensure that the company is competitive in different locations in both local target markets and international market. Since the company has a strong brand portfolio and GameStop can attract and retain loyal customers (GameStop corp, 2015). However, for this to be possible the growth in store sales as well as the earnings for which store are monitored to ensure that they are in line with industry growth. In order to maintain and improve the company’s position as a leading retailer of video game and entertainment software, stores are opened in strategic locations and capitalize on projected growth in the industry.
Since the company primarily now focuses on video game players, it has been necessary to target a broad audience. The game players are diverse and include the hardcore gamers to the seasonal gift givers and casual gamers. In particular, the company’s stores highlight on attracting more electronic game enthusiasts, through highlighting o the latest technology through merchandise, at the same time, it has been crucial for the company to rely on value priced game products, as this is more likely to attract more customers. In any case, the gamers are given the opportunity to trade in their video games in exchange of future purchases, since some of the customers may be unwilling to spend on new games considered pricey (Rose, 2007)
To further improve the company’s competiveness, the retail stores were chosen as destination locations because better customer service could improve the company’s image. Besides the destination locations being suitable for a selection of products, the pricing option allowed the company to reach out o more customers. Hence, having knowledgeable sales associates has been crucial to the company’s success in the gaming industry. At the same time, having a broad range of products for which customers can select enhances the company’s image, as potential customers are more likely to be drawn to the retail stores because of variety in merchandise. Since customers have the option of sampling the video games in the retail stores and with the sales training focused on enhancing the company’s image, this may improve sales over time.
2014 environmental (internal and external) assessment
Internal assessment
An internal assessment of the company takes into account the strong marketing position, a strong brand as well as the resource capabilities. Even though, the industry environment has changed over time with games the preferred products, the company has widened the variety of games available in order to cater to the needs of different customers. At the same time, the policy where customers can return products enables the company to rely on differentiation to grow the company’s operations. In any case, marketing activities through the company’s online platform and magazine gives the company leverage when reaching out to the potential customers allowing it to outperform some of the companies.
One of the main strengths of the company is that it has a recognizable brand name as well as a strong market position (GameStop corp, 2015). This will enable the company to use its competitive edge to stay ahead of its rivals. Even though, there are many video game retailers, GameStop has successfully dealt in the buying and selling of used video games. Despite the primary market being in North America and the west in general, the company has a wide distribution network that has enabled Game Stop to be more visible in the emerging markets (GameStop corp, 2015). In any case, the company has also grown through strategic acquisitions as well as partnership with suppliers, and this has enabled ...