ipl-logo

Gamestop Corporation Case Study

843 Words4 Pages

Although GameStop Corporation (NYSE: GME) has not been around for very long, they have had a rather rich history. Their roots can be traced back to an old store by the name of Babbage’s, which was a small retail store that sold software and was based in Dallas, Texas. However, Babbage’s was then acquired by Barnes & Noble, which subsequently also acquired Funco, Inc, a similar software company. However, near the end of 2000, Funco changed their name to GameStop and the company offered their first public shares two years later. In 2004, GameStop spun off of Barnes & Noble through a 6 million share buyback plan. GameStop officially became a corporation on April 13, 2005. Ever since then, GameStop has had a long list of their own mergers and …show more content…

In this past second quarter, GameStop generated $565.5 million in used video games sales. Their total gross profit for the quarter was $516.8 million and $260 million came from the used video game profits. This is the case because used video games are much more profitable for companies when compared to new games. Profit margins for used video games sold are all the way up to 46.8% as the profit margins for new video games sold are only 21.3%. These percentages are a big reason why they have a large market capitalization number for their industry at $4.6 …show more content…

In 2014, GameStop came up with a new business unit that is called the GameStop Technology Institute. Its purpose is to come up with business innovations and solutions to make sure the GameStop customer gets what they want and need. One of their innovations and development processes is being able to fix and resell broken electronics. The customer brings in their broken electronics and sells them to GameStop and GameStop quickly fixes the electronic and sells it on the market for a large profit. Most GameStop employees are able to fix any electronic from an old PlayStation to a new iPhone. Their knowledge as a corporation serves as a competitive advantage against all other companies in the video game

Show More
Related
775 Words | 4 Pages

One reason is they can have a significant force in the hunting and fishing market. By owning twenty percent, they can drive prices up or down and get customers with low prices or running other companies out of business. The only other major hunting and fishing retail outlet is Dicks Sporting Goods, which is a fraction of the size of Cabela’s and Bass Pro Shops. They can also have a major focus on what is being sold and in mass production. Cabela’s tried mass producing after being known for high-end hunting gear, and dedicated hunted stopped shopping at the store unless they needed products in mass quantities.

Read More
1977 Words | 8 Pages

One person was even surprised that they were still in business. This wasn't necessarily Gamestops fault because every store dies down after a while. This was the actions of their customers. All that Gamestop can do is continue to sell their products. There are 3 times when Gamestop gets most of their customers.

Read More
866 Words | 4 Pages

During the initial years, the Target store lost money and had reported more liabilities and debt than revenue, but then reported it’s first gain in 1965 when sales reached almost $39 million. By then, they had opened up a fifth store in Minneapolis (Nolen 2014). By analyzing the equity

Read More
760 Words | 4 Pages

1. In the broader context (not specific to Dollar General), what is KKR’s investment strategy? What are the challenges KKR will encounter to make its investment in Dollar General successful? How could KKR add value to Dollar General?

Read More
1637 Words | 7 Pages

Walmart was founded in the summer of 1962 by Kingfisher, Oklahoma native Sam Walton. Although Walton’s original vision for the store was relatively modest, the half century since its founding has seen Walmart morph into one of the biggest companies in the world. Today headed by one Doug McMillon, Walmart boasts more than 5000 stores in the United States of America alone and employs more than 1.5 million people. Walmart is undoubtedly an American institution, yet each Walmart store feels like its own little country. Walmart seems to have its own laws and customs and the people who shop their on a regular basis appear almost primitive in their behavior as they go about raiding the store’s shelves and wrestling with fellow customers for discount flat screen televisions and bulk packages of two-ply toilet paper.

Read More
882 Words | 4 Pages

Process and tools Target Corporation uses tolls and process for product safety and quality assurance. The company assesses a program for risk –based product safety and quality at every stage in the product life cycle, from development through the life of brand product. Target global team implement a program across 36 countries and 2228 factories producing target product, during the process will require independent third-party testing to validate safety and quality before the guests purchase product. the vendor in the company are expected to employ best practices, including clearly defined and well-documented manufacturing and quality processes including staff training , and record keeping. What does the TC required to do the job?

Read More
328 Words | 2 Pages

Target Corporation (NYSE:TGT) is one of the most recognized discount retailer that provides upscale, trendy merchandise at affordable prices. The company was founded by Draper Dayton in 1902. The first store was opened in Roseville, Minnesota during 1962. As a result of Target’s continued success, its parent company, The Dayton Hudson Corporation was renamed to Target Corporation in 2000. Currently, Target is the second largest retailer and mass merchandiser in the United States.

Read More
1315 Words | 6 Pages

Huge distribution network of more than 7000 stores globally in various continents. Cash Surplus Company, so can easily go into expansion mode. GameStop mainly resides various places such as the United States, Europe and Oceania. With the large profits that they make, they could easily expand into the Asian market where gaming continues to

Read More
843 Words | 4 Pages

Target Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.

Read More
1647 Words | 7 Pages

Thus, it is a strong side of Alphabet Games, which allows them to build a strong brand in the video games market and reach a wider group of players and critics. An experienced team of developers allows them to create attractive games while keeping costs in check, due to better time management. The weak side of running business results from the specificity of the activity consisting in the production of video games. The company first incurs expenditures that are returned only when the market accepts the product positively.

Read More
1200 Words | 5 Pages

Activision Blizzard is a leading video game developing and publishing company. Its games operate on gaming consoles, mobile devices and PCs and are sold through retail channels or digital downloads. 1.1.1/ History of the company Activision Blizzard was created in July 2008 from the merger of Activision and Vivendi Games (parent company of Blizzard). Activision (currently named “Activision Publishing”) was initially founded in 1979 by two former employees of Atari, David Crane and Alan Miller, and became the world’s first third-party developer and distributor of video games for gaming consoles.

Read More
1170 Words | 5 Pages

Ultimately, the tragic failure of Pets.com was because of a lack of market knowledge, mismanagement of funds and overestimating the power of internet which they became too reliant upon. I believe Pets.com was incapable of looking at their own company externally. If they were asked what industry are we in? Pets.com’s answer would be something like the ecommerce business rather than the home and pet industry. This is a similar example to the company Kodak as they failed to adapt to the fast-paced market and only looked at themselves internally and didn’t adjust to the digital age.

Read More
764 Words | 4 Pages

From this, a business plan is formulated and solutions are provided. These will be outlined in this section. The first issue is that the company has opened too many stores and almost all of them are competing with a local Barnes & Noble’s. This situation can be remedied by making it clear to everyone in the company that no physical stores should be opened anymore.

Read More
792 Words | 4 Pages

This can be used as marketing tools, and access to evidence of customer production costs have doubled in recent years with the introduction of the next generation of gaming devices. Other opportunities the organization is used as gaming devices in households over the next few years; you will notice the organization growth opportunities for the longest time of rewards. The new consoles will normally last for six or seven years and will pay for software sales during that period .Will override the consumer demand that technology and the next generation of games will hit the market. The challenge for smaller companies like Alphabet game to become in the market for potential advantages and longer period.

Read More
2034 Words | 9 Pages

Toys "R" Us proves to have more than it 's popular misspelled name going for it. The company has had almost consistent success since it was founded around 1960. With the history of popular children 's toys, Toys "R" Us has been standing out amongst competition by providing the multiple kinds of toy that can attract customer from all over the world. Toys "R" Us proves that building relationships is one of the major keys to run a successful business. Its unique hiring process provides stores with exceptionally talented employees.

Read More

More about Gamestop Corporation Case Study

Related Topics

Open Document