GameStop: A Comprehensive Overview and Analysis
GAMESTOP: NEVER STOP
University of Glasgow
Erick Trujillo
Jaime Gallardo
Katie Lombardo
Kong Tantrakulcharoen
1
Presented to Sarah Beattie and team
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3
AGENDA
Overview
Analysis
Alternatives
Recommendation
Implementation
Risks and Challenges
Summary
Q&A
Overview
New + used videogames + Consoles
Recent expansion into collectibles – Own ThinkGeek
5,830 retail locations – Shopping centers
International – US, Canada, Australia, Europe, NZ
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G
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Overview
Average player is 31
$18 billion year new gamers
Additional $25 – 32 billion for digital content
Console market alone $47.9 billion USD
e-sports competition: $1.5 billion prizes 2018
454 million viewers worldwide
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G
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Analysis
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C
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KMART
Best
Buy
Target
Walmart
GameStop
# of stores
Revenue
Analysis
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C
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p
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Uplay
Origin
Steam
GameStop
Users/Customers
Total Revenue
100 million
9 Billion
16.2M Customers
Analysis
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Large number of local stores
Big Customer base
Strong brand reputation
Sub-brands
Data analytics
Online content
Segmentation of market
Different generation approaches
Easeports growth in industry
Robust market for new consoles
Rewards club members
Sony prohibition to
download codes for retail
Online game streaming
Channel
Strong offline competitor
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O
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?
Develop Online Streaming
Big Data Analytics
Sponsor YouTube Gamers
STP Marketing
Host gamers tournaments
HR - Hire younger people (GAMERS)
Start transforming of original stores
Reduce store amounts & sizes
Create own online content by transforming "Game
Informer"
Create and Expand to mobile game market
A
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t
e
r
n
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i
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GAME OVER IS NEVER AN OPTION
GET A NEW LIFE
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A NEW LEASE ON LIFE
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IMPLEMENTATION
39.6 million members
16.2 million made purchases last year
5.6 million premium paid memberships
20.5 million marketed to regularly
Roughly 50% receive regular
communication from GameStop
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:
P
O
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IMPLEMENTATION
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IMPLEMENTATION
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IMPLEMENTATION
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Assumptions
The total cost is
40% of employees
40% Physical stores
20% Others
Risks and
Challenges
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SUMMARY
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By utilizing big data analytics we can better reach
our customer base by offering customized
recommendations
Closing and transforming stores into “Experience
Centers” will cut down operating costs and local
events with make remaining locations more
appealing shopping destinations
Expansion into the mobile marketplace will allow us
to be on the cutting-edge of gaming and shopping
technology
Incorporating ThinkGeek merchandise into
GameStop stores will improve our already profitable
position in the collectibles market
Thank you!
24
Q&A
"Exploring GameStop's business strategy, market position, competition, and opportunities in the gaming industry. Analysis covers strengths, weaknesses, threats, and recommended strategies for future growth in online streaming and big data analytics."
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Presentation Transcript
GAMESTOP: NEVER STOP University of Glasgow Erick Trujillo Jaime Gallardo Katie Lombardo Kong Tantrakulcharoen Presented to Sarah Beattie and team 1
Overview Analysis Alternatives Recommendation AGENDA Implementation Risks and Challenges Summary Q&A 3
GameStop New + used videogames + Consoles Recent expansion into collectibles Own ThinkGeek Overview 5,830 retail locations Shopping centers International US, Canada, Australia, Europe, NZ 4 Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A Overview
Average player is 31 GameStop $18 billion year new gamers Additional $25 32 billion for digital content Overview Console market alone $47.9 billion USD e-sports competition: $1.5 billion prizes 2018 454 million viewers worldwide 5 Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A Overview
Walmart Competition Target Revenue Analysis Best Buy GameStop KMART # of stores 6 Overview Alternatives Recommendation Implementation Risks and Challenges Summary Q&A Analysis
9 Billion Steam GameStop 16.2M Customers Competition Total Revenue Origin Analysis 100 million Users/Customers Uplay 7 Overview Alternatives Recommendation Implementation Risks and Challenges Summary Q&A Analysis
Strengths Weaknesses Large number of local stores Big Customer base Strong brand reputation Data analytics Online content Sub-brands Analysis Segmentation of market Different generation approaches Easeports growth in industry Robust market for new consoles Rewards club members Sony prohibition to download codes for retail Online game streaming Channel Strong offline competitor Threats Opportunities 8 Overview Alternatives Recommendation Implementation Risks and Challenges Summary Q&A Analysis
Develop Online Streaming Big Data Analytics A New Lease On Life, or Game Over? Sponsor YouTube Gamers STP Marketing Host gamers tournaments Alternative 1 Alternative 1 HR - Hire younger people (GAMERS) Start transforming of original stores Reduce store amounts & sizes Create own online content by transforming "Game Informer" Create and Expand to mobile game market 9 Overview Analysis Recommendation Implementation Risks and Challenges Summary Q&A Alternatives
A New Lease On Life, or Game Over? GAME OVER IS NEVER AN OPTION Alternative 2 Alternative 2 GET A NEW LIFE 10 Overview Analysis Recommendation Implementation Risks and Challenges Summary Q&A Alternatives
A New Lease On Life, or Game Over? A NEW LEASE ON LIFE RECOMMENDATION RECOMMENDATION 11 Overview Analysis Alternatives Implementation Risks and Challenges Summary Q&A Recommendation
TIMELINE IMPLEMENTATION IMPLEMENTATION 12 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
IMPLEMENTATION IMPLEMENTATION IMPLEMENTATION 13 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
IMPLEMENTATION IMPLEMENTATION IMPLEMENTATION 14 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
Game preferences (Big data tracking) STP - SEGMENT Console owned (Big data tracking) IMPLEMENTATION IMPLEMENTATION SEGMENT Generational Gen Y, Z & Alpha 15 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
Recommendations based on previous purchases STP - TARGET New titles and hot releases for each console IMPLEMENTATION IMPLEMENTATION TARGET Age appropriate content and popular games 16 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
Diverse offerings STP - POSITION Something for everyone with personalized recommendations POSITION IMPLEMENTATION IMPLEMENTATION 17 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
STP: POWERUP REWARDS MEMBERS 39.6 million members 16.2 million made purchases last year 5.6 million premium paid memberships 20.5 million marketed to regularly Roughly 50% receive regular communication from GameStop IMPLEMENTATION 18 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
TRANSFORMATION TO EXPERIENCE STORES IMPLEMENTATION 19 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
REDUCTION PLAN IMPLEMENTATION 20 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
FINANCIAL STATUS IMPLEMENTATION Assumptions The total cost is 40% of employees 40% Physical stores 20% Others 21 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
Risks and Challenges 22 Overview Analysis Alternatives Recommendation Implementation Summary Q&A Risks and Challenges
By utilizing big data analytics we can better reach our customer base by offering customized recommendations Closing and transforming stores into Experience Centers will cut down operating costs and local events with make remaining locations more appealing shopping destinations SUMMARY Expansion into the mobile marketplace will allow us to be on the cutting-edge of gaming and shopping technology Incorporating ThinkGeek merchandise into GameStop stores will improve our already profitable position in the collectibles market 23 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Q&A Summary
Q&A Thank you! 24 Overview Analysis Alternatives Recommendation Implementation Risks and Challenges Summary Q&A
