Gamestop Strengths And Weaknesses

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a. Strengths GameStop is a market leader in video games and related hardware. Owing to this leadership, it has significant profit margin until it dropped this year. Also, it has an expansive of distribution network with thousands of stores globally. Cash surplus is likewise available, enabling expansion. GameStop also has knowledge and experience in selling gaming products which is why it can handle a wide product portfolio and already have international market segments. Current diversification is also working and enables high dividend payout. Finally, GameStop has high brand equity when it comes to corporate social responsibility. b. Weaknesses Despite these strengths, GameStop is unable to respond to its weaknesses that must be resolved…show more content…
New production and distribution technologies can enable GameStop to expand its product offerings to existing market for market penetration and product development. Likewise, opportunities for vertical and horizontal integration through mergers and acquisitions are present especially when there are large gaming markets in China, India, and Latin American nations where income is quickly rising apart from improvements in their communication and transportation infrastructures. See Figure 7. It shows that in 2017, 47% of consumer spending came from the Asia-Pacific region (McDonald, 2017). Asia-Pacific alone will grow at 9.2% year-on-year to $51.2 billion with China composing $27.5 billion (McDonald, 2017). Latin America has higher growth at 13.9% year-on-year (McDonald, 2017). North American is only 25% of the global market with 4.0% year-on-year growth (McDonald, 2017). GameStop will lose a great deal if it does not penetrate these new markets. Moreover, new gaming products and services for new niche markets can be tapped as many gamers are looking for new games with add-ons and some markets also are waiting to be gamified, such as the education and health sectors (e.g. games as pain-reducing devices for they distract surgery…show more content…
We are investing $1,000,000 initially for the project and then there are operating costs too. Considering all investments, the payback period for the plan is 5 years. Resources for action plan Top management and understanding of Indian market is key for this action. Top management may have to make various trips to India to discuss with various telecom operators, feedback from them and devise strategy accordingly. Also regulatory approvals are crucial too, the management may delegate work responsibilities as needed. Period of completion: An analysis for next 5 years for cash outflows and revenues is done. It is expected after 5 years newer technology may come which will force management to re-look the business strategy. Short-term and Long-term consequences. The short-term consequences will be as under 1. Management focus on developing new country and understanding PESTEL differences 2. Higher debt 3. Identification of value chain activities so as to integrate existing businesses in developed countries with newer
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