Introduction
After the acquisition of EB Games, GameStop rose as the leading video game retailer in its industry. In an effort to sustain their position, GameStop will have to tackle several technological and sociocultural issues that have arisen from its competitive environment. The strategic objective we wish to accomplish in this analysis is to formulate a viable strategy that will continue GameStop’s growth in the industry to remain as the go to video gaming store for the video gaming enthusiast.
The retail gaming industry is a relatively new industry but GameStop has shown tremendous growth since 2002. An external analysis of GameStop’s general environment will show threats to the industry that include age restrictions for rated
(Exhibit 4) GameStop’s value creating activities indicate that the company operates at a superior or equivalent level than that of their competitors by marketing through their magazine and website as well as their recruitment process of selecting employees who are devoted gamer themselves. (Exhibit 5)
GameStop has had a well know brand image since 2005 when they became the world largest video game retailer. In the case study, it was mentioned that GameStop planned on changing all of their EB branded stores to GameStop stores by 2007 so that they can expand their reach even further. GameStop seeks “to be recognized as the destination for new and used video games and gaming systems” (Chatterjee 6), which took many years to accomplish. It is this kind of reputable image that will drive customers to go to GameStop store rather than competitors with a lesser brand image. Additionally, GameStop’s marketing strategy also gives the firm a sustainable competitive advantage with above average returns. GameStop is the owner of Game Informer, the leading gaming magazine that they use as a tool to market new games to their customers, which many of their competitors do not possess. They also have their own website where customers are able to research and buy games based on their interest. (Exhibit 3)
In the business level strategy,