ipl-logo

Wal-Mart: Far One Of The Most Powerful Wholesalers

855 Words4 Pages

In the article we have Wal-Mart, by far one of the most powerful wholesalers in the United States, entering the market for the purchase and sale of used video games. Wal-Mart will be looking to rival GameStop, the video game retailer that dominates the $1.6 billion market for used games. All to begin this upcoming Tuesday as Wal-Mart will be opening this service on 1,700 of its 4,800 U.S stores (specific locations not given). The article focus on the effects this move will have on GameStop, which according to GameStop’s president (Tony Bartel) will not be a noticeable threat. Analysts seem to agree with his reasoning as they predict; GameStop will remain the dominating retailer when it comes to used video games because of the relationship they have been able to create with gamers. An argument behind this prediction is that, “selling the used games will be easy since there will always be ‘cheap people’ buying used stuff” but where Wal-Mart might struggle in years to come is on its supply. Due to the fact that “getting people to trade in games requires a relationship.” Bartel furthers his claim by stating, “setting buy and sell prices for used games is more difficult than it seems, and Walmart runs the risk of getting stuck with inventory if it gets that balance wrong.” Even though no specific strategies on how …show more content…

This relationship is further complemented by GameStop store set-up; being game-specific concentrated. They sell electronics, but their main profits come from the sales of video games. As the store’s logo states, the store solely focuses on empowering their customers (Power To the Players). Furthermore, Wal-Mart will have its highest challenges during the first years as they try to accommodate and compete in a fairly new market to them. It is for these reasons that, Wal-Mart (even though the top retailer), can be considered the weaker

Show More
Related
1399 Words | 6 Pages

The resale market accounts for “26 percent of GME revenues” and “offers nearly 47 percent gross margins” (Derousseau, 2016). 1. GameStop will utilize a yearlong promotion offering additional store credit with the purchase or pre-order of new games or game releases. The additional store credit will cause a decrease in the profit margin to the store when the games are resold. This promotion will increase the sales of new games at the store level by exposing new and existing customers to the service level that GameStop provides that other competing retailers do not.

Read More
957 Words | 4 Pages

“GameStop relies heavily on a limited number of suppliers for its merchandise purchases. In FY2017, it procured most of its merchandise from 10 top primary suppliers, Sony, Microsoft, Nintendo, Electronic Arts and Activision accounted for 24%, 14%, 10%, 7%, and 6% respectively“ (Market Line, p. 12). These suppliers, all produce their own consoles with space for downloadable content, effectively diminishing GameStop’s role within the retail market. Data Collection A survey with 12 respondents who play video games revealed that: - 25% identified GameStop as a seller they purchase games from regularly - 83% said that they most regularly purchase games from online sources - 33% have made purchases from GameStop in the past year - 16% have never made a purchase from

Read More
1315 Words | 6 Pages

For the time being, GameStop only face competition from the likes of Xtra-Vision whose main selling product wouldn't be games. This gives GameStop a slight advantage for now. Large amounts of profits as they are the leading in the market for gaming products. They have no real rival thus they make a significant amount of business from this.

Read More
2177 Words | 9 Pages

GameStop is able to price the used game however the want, and none of the money goes back to help fund the developers for future titles. Although used game sales account for only a third of GameStop’s total sales, it is responsible for over half of its annual profit. Erik Kain of Forbes.com reported that “if the used game market were to be eliminated...profits per game to rise by about 19 percent,” and “the average [game] price would be 33% lower than the current price” (Kain). Logically, GameStop would strive to preserve their number one profit generator,

Read More
853 Words | 4 Pages

Microeconomics ECO 210 Thomas Kirkland Monopoly A Board Game or The E-book Industry? Our society has slowly begun a paradigm shift away from brick-and-mortar stores as well as hardcopies of any material related to paper. We can see this trend in effect today as smart phones, smart tablets and online sales become more and more abundant in everyday life. The transition to this technology based lifestyle has already changed the driving factors of retailing industries and consumer patterns.

Read More
1179 Words | 5 Pages

The industry marketplace capital, in accordance with Yahoo Finance, is presently at $23.2 billion. This amount is considerably lesser compared to other industriousness, for instance Home Improvement Stores ($53.0 billion), Discount Variety Stores ($240.4 billion) or Apparel Stores ($37.2 billion). The low marketplace capitalization suggests that it would not be problematic to move in the industry constructed solely on the investment necessitated. Nonetheless, a prospective entrant would have to conquer the top-quality brand reputation which Best Buy has ascertained. Best Buy has manufactured a standing for marketing intermediate to high-end merchandise and superb customer service.

Read More
394 Words | 2 Pages

In the case study, Target is addressing the problematic issue of showrooming, or the act of having a retailers’ brick and mortar stores being used as a showrooms for customers to view products in person, only to lose the sale to an online competitor for a discounted price (Kinicki & Williams, 2013). Target’s management team must find a way to decrease the competition gaining these customer sales in order to grow and maintain their business. Furthermore, but concentrating their issue directly with the vendors, they are sending a message loud and clear for other retailers to follow. Unfortunately, Target must additionally tackle other problematic issues that are causing them to lose customers after walking into their store.

Read More
1418 Words | 6 Pages

Video game retail stores have competed ever since the introduction of video games in America. This competition has caused many companies to develop more and more video games, causing the retail stores to keep selling. This at the same time has caused for some companies to fall, or at least sent some companies to a temporary recession. In 1995 video game consoles that went by the name of Sega Saturn and Sony PlayStation failed to boost the sales of Neostar. Neostar at the time was a business partner with Babbage's.

Read More
202 Words | 1 Pages

Toys “R” Us has not been able to change their weaknesses into strengths. A report by Toys “R” Us stated that sales in recent months were lower than they expected and that store sales even decreased by 2.5% domestically and 4.9% internationally during the 2016 holiday season. The fact that they experienced a loss in sales during Christmas is a strong indication that they have some serious problems. This is likely due partly to changes in demographics but is also caused by some poor business decisions. A common complaint is that “they're always out of stock of popular toys.”

Read More
1630 Words | 7 Pages

Besides, key players like Mattel have experienced a dip in sales in recent years. For instance, Mattel’s Barbie revenue dropped by 15% in 2015. Such declining sales are a common feature in the maturity stage of industry life cycle. However, the industry is still recording significant growth of sales of digital games and toys following technological advances (Follett 238). Besides, emerging markets and Latin America and Asia promise positive growth in the next few years.

Read More
1143 Words | 5 Pages

In comparison to the existing players in the toys and games industry with expertise helping in decision making and optimising their value chain, new entrants may not reap the economies of scale advantage due to production and resources limitation. Bargaining Power of Buyers (High) Big retailers like Wal-Mart, Toys”R”Us are LEGO primary buyers as they purchase in bulk, provide them with leverage in negotiation. Furthermore, switching costs for retailers is low since it is easy to buy competitors toys. Bargaining Power of Suppliers

Read More
849 Words | 4 Pages

Thus if we analyse the value chain is almost the same for Walmart, Amazon and eBay. Condiering the comeptetive forces anlaysis ofr all three : • Rivalry in the industry: This is fairly weaker; however Wal-Mart enjoys the topmost slot because of lowest cost, prices and more profits and market share as compared to Amazon and eBay. Because of no entry barriers the market is full of competitors. • Threat of

Read More
1009 Words | 5 Pages

I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).

Read More
838 Words | 4 Pages

Retailer 's competitive environment Wal-Mart is one of the world 's largest retailers and operates in a variety of different store formats, making them one of the most competitive global companies. Wal-Mart 's competitive environment can be broken down into four categories strengths, weaknesses, opportunities, and threats. Below is a comprehensive SWOT analysis current as of November 23, 201 Strengths include their emphasis on market position, Customer-Centric Business Operations, and their Inventory Turnover ratio ("Wal-Mart Stores Inc…"). Walmart as a global company operates internationally amongst 27 countries ("Wal-Mart Stores Inc…"). Wal-Mart 's dominating retail presence secures them a strong market position, while not classifying them as a specialty store.

Read More
2037 Words | 9 Pages

Toys “R” Us Loses the Leverage Game The recent painful demise of the iconic Toys “R” Us empire was no surprise to many in the world of corporate finance. The toy wonderland that nurtured baby boomers had become stale and obsolete in the eyes of millennial buyers more interested in technological playthings than Geoffrey the Giraffe. Mega toy manufacturers like Mattel and Hasbro realized that Toys “R” Us could no longer serve as their paradigm for new product testing and marketing data. Wal-Mart dethroned Toys “R” Us in 1998, usurping their status as the biggest toy seller, and Amazon – who reneged on an exclusivity contract with Toys “R” Us – now took their place as the darling for market testing and research.

Read More

More about Wal-Mart: Far One Of The Most Powerful Wholesalers

Open Document