Gamestop: a new lease of life, or game over?

Transcript:Gamestop: a new lease of life, or game over?:
Gamestop: a new lease of life, or game over? Technological university dublin CONSULTANCY Technological university dublin CONSULTANCY DEAN MURPHY FINANCE JANE MAHER MARKETING GRAEME PHELAN OPERATIONS SARAHJANE MCGIGAN GROWTH CHALLENGE STATEMENT How to take the business from the present with a model from the past into a future that is bright? ANALYSIS ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION SWOT Key takeaway: Members, Marketing and Online. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION TOWS Key takeaway: Utilize marketing strength and address declining physical market ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Good cash position Strong member based but unsegmented Reversing declining sales & growing pre-sold market Tapping potential of large member base Business model Marketing strategy Key takeaway: Deliver new business model AND a new marketing strategy ISSUES ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION LIST OF ISSUES PRIORITIZATION OF ISSUES URGENCY IMPORTANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION ISSUES THEMED RECOMMENDATION ONE ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Key statistics 8.5% Gross Profit (GP) on hardware 88.5% GP Digital Consoles CAGR 13.4% fastest growing Online shopping – 14.3% total retail $517B, growing 15% Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION Move to fully ecommerce business model Blended online bricks & mortar with new marketing strategy Tackle esport market by copying mixer/ twitch model Option 1 Option 3 Option 2 Cost saving High risk Cost saving Medium risk Cost saving Cost incurring ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Option evaluation Key takeaway: Phased repositioning most strategically acceptable & viable ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: WHAT: Address current business model issue Strategy on a page Vision; To be a market leader of the gaming industry 2.0 What: blended business model transitioning to a digital first e-commerce driven model Key takeaway: Need to play to strengths while also mitigating against risks changing buyer behavior & demographics Website SEO traffic Increase in ecomm Revenue distribution split. ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue 1 Billion USD over 3 years Redundancy budget: 640 million Refit: 200 million over 3 years Dist. Centers 20 over 3 years: 200 million ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE: Address current business model issue Phased over 3 years to 2023 ANALYSIS EVALUATION RECOMMENDATION IMPLEMENTATION RECOMMENDATION ONE BUSINESS MODEL RECOMMENDATION TWO ANALYSIS EVALUATION