1 Presented to: The board of GameStop Presented

Transcript:1 Presented to: The board of GameStop Presented:
1 Presented to: The board of GameStop Presented by: Addy, Alisha, Arun and Shane Current Situation 2 Current Situation 3 5830 stores $9 billion USD in revenues Sales per square feet - $657/sqft 22.5% of net sales comes from pre-owned segment 16,000 full time employees Average participant age is 31 years Market size estimate: $18 billion for new video games $25 billion for digital game content Console sales CAGR – 13.4% 457 million viewers tuning in to view e-sports Key Issues 4 Key Issues 5 Dying company in a booming industry Massive shift to digital download Digital download codes cannot be sold by the store Decline in mall culture – 25% malls were shutting down Rise of online shopping Challenge 6 Challenge 7 To strategically bounce back from the currently dying situation and to turn a profit and then sustain that To tackle the problem of lack of product availability given the current direction of the industry One line solution 8 One Line Solution 9 Consider a strategy to grow your ecommerce platform to transfer the amount saved on closing brick and mortar stores to building and growing these platforms Analysis 10 Analysis 11 Company in the past: 1984: First Store in Dallas, Texas – “Babbage’s” 1988: Company goes public. 1996: Mismanagement leads to bankruptcy Assets purchased by Leonard Riggio for $58.5M USD. 1999: Babbage’s rebranded to GameStop. Sold to Barnes and Noble for $215MUSD. 2002: GameStop gets listed on New York Stock Exchange as “GME”. Early 2000s to mid-2010’s: Next wave in gaming popularity – revenues grew rapidly for GameStop. Growth of North American Mall culture. Products to choose from for Gamers: Gaming consoles, newly-released games, collectibles, and sell their used Games to GameStop. GameStop goes global – Europe, Canada, Australia and New Zealand. Analysis 12 GameStop Today: Around 5830 leased physical retail stores with 16000 full time and 23000 part time employees. Products continue to be : gaming consoles – hardware and software, pre-owned video game software (represents 22.5% of net sales), accessories, collectibles. sub-brands such as EB Games and Micromania in Canada and Europe Game Informer magazine: 5th largest consumer publication in the US and approx. 6.6M paid subscribers, including 2.1 M paid digital subscribers. Rewards program: PowerUp Rewards – approx. 39.6M members as of February 2019. Analysis 13 Strengths and opportunities Significant differentiation – GameStop’s pre-owned segment Collectibles Console sales will be fastest growing segment Hasn’t