GameStop digital transformation strategy presenting to: George Sherman Sarah Beattie Team presented by: Decio Soares Nahana Caetano Romilson Teles Tobias Walzberg Insper Sao Paulo Brazil agenda 1 Analysis of the situation 2
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Presentation Transcript
01
GameStop digital transformation strategy presenting to:
George Sherman
Sarah Beattie & Team presented by:
Decio Soares
Nahana Caetano
Romilson Teles
Tobias Walzberg Insper | Sao Paulo – Brazil<br>
02
agenda 1 | Analysis of the situation
2 | Alternatives & recommendations
3 | Implementation
4 | Wrap-up<br>
03
1 analysis of the situation<br>
04
Market changes 1984 Technology
Traditional “shrink-wrapped” video games titles 1999 2000/2010 2002 2014 1988 2019 1996 Babbage’s foundation Became public Bankrupt (acquisition by Leonard Riggio)
Teenagers &
early adults (31 years old) – millennials Competition
Bricks & Mortar (BestBuy, Target, Walmart, Kmart)
Download sites (Originm UpPlay, Steam)
Noteworthy
(Gamefly, Amazon) From To Technology
Traditional “shrink-wrapped” video games titles
Online-first download
Streamed experience<br>
06
Digital Transformation 1 | Previsibility
2| Recurrence
3 | Agility Physital
Digital & Physical Experience 3 drivers for digital transformation<br>
07
2 alternatives & recommendations<br>
08
Infraestructure Services Products Media GameStop new value proposition in based in 4 pillars<br>
09
- Strategically closing of physical stores
- Website transformation (big data analytics inclusion)
- Redesign of GameStop website and launching of a platform to mobile devices (proprietary technology) Infraestructure GameStop new value proposition in based in 4 pillars<br>
10
- GameStop University:
Training center (“How to be became the best player”, “Be a YouTube video streamer”, etc)
Open space for coach use
eSport practices
- Loot crate subscription (merchandising)
- Marketplace (Amazon) Services GameStop new value proposition in based in 4 pillars<br>
11
- Game consoles
- Game accessories
- Collectables
- Merchandising Products GameStop new value proposition in based in 4 pillars<br>
12
- Full digital presence in social media
- Focus on millennial needs
- Use social media to reposition the brand (focus on institutional aspects >>> Love Brand) and continuously engage the “game stoppers”
- Focus on SEM (Search Engine Optimization, App Search Optimization), GoogleAds, InstagramAds to increase sales
- Restructure of Game Informer magazine and e-zine Media GameStop new value proposition in based in 4 pillars<br>
13
3 implementation<br>
14
Implementation plan Branding (brand architecture strategy)
Services deployment
Product sourcing
Media presence
Infrastructure deployment<br>
15
Brand architecture strategy independent endorsed monolithic P&G
LVMH Fanta
A Coca-Cola Company Intel
Microsoft
Apple
Samsung<br>
Services deployment Online presence
Becoming present in an online market place (1Q20)
Offering current inventory
Market assessment – what products to specialize in
Rolling out new product portfolio (2Q20)
Loot crates subscription
Collectibles and accessories
Positioning the company as a reference for trading game related products (2Q20 – 4Q20)
Platform within a platform - leveraging “amazon.com” characteristics
Game university (3Q20 – on going)
Infrastructure assessment (3Q20)
Identifying coaches/professors and content creators (4Q20)
Adapt physical space to host events (4Q20)
Online and physical sales (1Q21 – on going) Recurring activities:
Trend analysis (e.g. Google analytics)
Portfolio assessment and adjustment
Infrastructure assessment and adjustment<br>
21
Product sourcing Product portfolio
Sale of inventories in consoles and games (1Q20)
Inventory assessment – what and at which price to sell
Market assessment – what products to specialize in
Procurement of new products (2Q20 – on going)
Development of Loot crates
identifying suppliers
Crate composition
Collectibles and accessories
7 procurement steps
Trend analysis (e.g. Google analytics)
Portfolio assessment and adjustment
Partnerships with key suppliers (e.g. FUNKO)<br>
22
Media presence Branding
New brand strategy (1Q20 – 4Q21)
Social media
Increase presence in main media vehicle: youtube (1Q20 – on going)
Use the channel to distribute proprietary content and streaming events (1Q20 – on going)
Sponsor key gamers and events (1Q20 – on going)
Trend analysis (e.g. Google analytics)
Brand love assessment
Partnerships with key content creators
Content deployment at selected platforms
Online advertising to generate traffic<br>
23
Infrastructure deployment Physical presence
Reduction of physical stores (1Q20 – on going)
Determine best locations for new stores outside malls (1Q20)
Renew leasehold only for select stores at expiration – revenue per sqft above current average (USD 657)
Renegotiate remaining long-term leases (2Q20)
Physical site refurbishment
To happen in waves:
100 conceptual stores (1Q20 – 2Q20)
250 top tier stores (4Q20 – 1Q21)
500 best locations (2Q21 – 1Q22)
Reassess remaining stores (3Q20 – on going) Recurring activities:
Revenue per sqft tracking
Location and demand assessment
Layout improvement
Assessment of additional offers (e.g. energy drinks)<br>
24
risk analysis<br>
25
Financial assumptions<br>
26
Financial preliminary forecast<br>
27
Investments<br>
28
2 wrap-up<br>
29
wrap-up How to transform GameStop? Integration of digital and physical experience
Focus on recurrence, previsibility and agility
Investment in new assets for digital transformation (cloud platform, app development, proprietary technology)<br>
