GameStop

GameStop
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Introduction
GameStop targets a broad audience with both PC software entertainment software new and used video games. The company purchases products from various gaming suppliers, including, Nintendo, Microsoft, Sony and others. As such, the company’s strategic management has used diverse tactics over the years to improve and maintain its position as one of the leading retailers of video game products as well as the entertainment software. In order to continuously improve value in the company the management is strict on recruiting since the gaming industry changes rapidly over time. In any case, the customer centered aspect of the business has been vital to the growth of the company’s brand, ensuring success for the company at various levels. This paper focuses on Game Stop’s history and background, use of business level strategies as well as high level strategies applicable in light of the environment analysis.
History and background of GameStop
GameStop Corp is also a top retailer for toys as well as new, old software, and with a wide variety of retail stores in 49 states in the U. S, the company is well positioned to bring their goods closers to the customers while increasing customer awareness. As such, shopping centers and shopping mills are important locations for the company because of the benefits of the location in improving the company’s marketing strategies. Additionally, the company also has an e-commerce platform as well as a magazine in order to reach out to potential and existing customers. The company started in the early1980’s, whereby McCurry and Kusin focused on four broad strategies to improve sales of the start up. As such, the relied on updating products over time, a competitive pricing system, and flexible store design and non-commissioned staff who approached customers without relying on technical jargon (Reference business.com). However, during the period the company faced losses over time, and hence there was a need to change strategy.
The 1990’s was a turning point for the company, with new outlets being opened, but the low profit margin strategy meant that the stock value plummeted as did the company’s earnings in the early 1990 (Reference business.com). To avoid further lossess on the company’s financial resources, there was a scale back on operations, while also utilizing cost control measures. Additionally, the establishment of a new computerized system improved operations. In 1994, the company merged with Software ETC to form NeoStar Retail group ., but the other retail as well as computer stores and electronic stores were competitive, meaning that growth for the company was limited (Reference business.com). NeoStar later filed for bankruptcy in 1996, but fortunes changed with the company rebranding from 2002 as an independent Game Stop Corp in 2002, with the company’s stores mainly located in shopping strips, and further expansion into overseas market has seen the company further grow since then.
GameStop’s Original brand position and key business-level strategies
The business level strategies focus on the actions undertaken by firms in order to gain a competitive advant...