GameStop --Let the Games Begin! Presenting to:

Transcript:GameStop --Let the Games Begin! Presenting to::
GameStop --Let the Games Begin! Presenting to: George Sherman, CEO of GameStop Presented by: Nanyang consulting January 2020 Agenda 1 2 3 4 5 6 7 8 Problems Recommendations Analysis Alternatives Implementation Financials Contingency Conclusion 2 Problem Statement: GameStop faces obstacles to survival amidst disruption in the gaming industry 3 GameStop faces obstacles in future growth prospects amidst a highly evolving industry and consumer landscape Recommendations : GameStop can dynamically evolve with the industry and consumers to attain exceptional performance 4 GameStop can exploit opportunities in the industry, and internally, to stimulate growth and ensure survival amidst challenges External analysis: GameStop operates in a highly evolving, competitive industry that faces disruption 9.6% YoY growth in digital gaming content Shift to online gaming communities – 27% increase Introduction of 5G (20-30 gbps) CAGR 13.4% in console sales 3.8% YoY growth in retail sales Increasing online shopping – 14.3% of total retail sales 5 Opportunity Disruption – from physical to online Competition – Brick and mortar and online Shift in consumer behavior Threat Internal analysis: GameStop has a robust retail model with capabilities that need to be exploited to survive Revenue growth – over $ 9 billion Geographical presence– 5830 locations worldwide Differentiation – pre-owned segment Robust marketing program – Powerup rewards, magazine 6 Strength Lack of investor confidence – decreasing stock price Lack of customer segmentation Inadequate use of customer data Decreasing Revenue and Operating Income Weakness Industry Value Chain analysis: Gaming retailers faces threat of disruption and displacement within the industry 7 Offline gaming retailers are threatened by online sellers with deep partnerships with game producers, and customer who prefer online sales Threat of displacement Threat of disintermediation Orogin, UPplay Gamespot, BestBuy Industry potential analysis: Gaming industry has potential areas for growth and exploitation 8 GameStop must monetize on community potential, events and influence of YouTube channels Industry value analysis: GameStop must focus on potential areas to secure competitive advantage 9 Future potential areas for avoiding disruption – customer analysis and experience and convenience of purchase High Relativity Low Product Variety Customer Experience Price Convenience Customer Understanding GameStop Traditional retailers (Best buy) Online (Origin) Customer Persona Analysis: GameStop must target customers across profiles to ensure that it stays ahead in the game 10 Strategic alternatives have been considered in our analysis 11 Future growth Current operations Diversify Content Provider Mobile game application Online streaming Community hub Business Model revamp Operations