GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. GameStop’s business has relied on its brick and mortar stores, and selling physical video games to consumers. Since 2013, GameStop stock has fell from $54 a share to a low of $3.50 a share in March of 2020. This collapse has come as consumers move away from brick-and-mortar stores, to purchasing video games online and downloading games straight to their console.
For my case study I will discuss GameStop’s problem with their business model of brick and mortar sales, and how they can adapt to the new age of online downloads of video games GameStop’s major issue was that they failed to adapt to the ever evolving online consumerism that has emerged since 2013. This put them behind the eight ball, and has hindered sales.
Problem statement: “Since 2013, GameStop has experienced a decrease in sales due to consumers switching from physical video games to downloadable video games. How can GameStop revise its business model to improve sales, and how might it use its recently infused capital provided by activist investors driving up its stock price?”
Sample Solution
