Gamestop Business Analysis

864 Words4 Pages
I. Buy-sell-trade: GameStop’s buy-sell-trade system is one of their greatest strengths. This system allows customers to trade used video games for in store credit. This store credit compels customers to use the money from the exchange to purchase merchandise from GameStop. II. Broad merchandise: GameStop makes it known that they are proud to have not only an extensive line of products (games) but also the most current. III. Rewards Program: Gamestop offers a rewards program for its customers. This reward program is like any other reward program – for every dollar you spend at GameStop you receive a point. Once points are accumulated the customer can redeem them. But, GameStop not only offers a simple free rewards program. GameStop went a…show more content…
Website: GameStop’s website is easily manageable and helpful to customers. The different tabs and FAQs help customers easily find what they are looking for. V. Brand recognition: GameStop has done a great job of establishing themselves as the store to visit when looking for video games and accessories. With 6,000 stores worldwide GameStop is accessible to a large number of customers. Weaknesses: I. Updating Strategy (market utopia): with technology evolving, there are faster and more convenient ways of reaching customers. Just as we read in the article Evolve, the old business methods don’t work anymore. “It’s time to evolve.” Ex: digitally downloading games. GameStop has not changed their current strategy and isn’t reaching out to these customers. II. Costs: the costs involved in maintaining a GameStop physical location are high. Electric bills, employees, security measures in place, etc. GameStop should consider a less expense method to reaching customers while offering more convenience.…show more content…
E- Commerce: with the Electronic commerce growing, GameStop needs to adapt to this new way of purchasing and delivering goods. Just as they should take advantage of Instant gratification they should also find ways of reaching the online customers. Threats: I. Indirect competition: amazon, and other game and video retailers are starting to adapt the trade in system. II. Digital distribution: a major threat to GameStop is digital distribution that other competitors offer. Many game video users now have the ability to digitally download games from devices at home. (Xbox console online via Xbox live Microsoft entertainment portal). This poses a great threat to GameStop because being able to download a game directly from your device is further more convenient then having to drive to a GameStop location. III. Market evolving: the technological and game industry is constantly changing. It is difficult for companies, such as GameStop to adjust and stay up to date. Greatest threat: Not adapting to evolving

More about Gamestop Business Analysis

Open Document