Gamestop Essay Example | Topics and Well Written Essays - 750 words

Gamestop - Essay Example (Gamestop) The updated information lists its store network at 6,683 stores, all owned by the company, located in four key regions, namely Canada, Australia, Europe and the US. Its range of products extend to software, hardware, personal computer software, accessories, and related merchandise. It has a market capitalization of 2.85 billion dollars, a third of its peak market capitalization achieved in 2007. Share prices at present are comparable to levels in 2006 and have been at those levels since 2009, suggesting that prices are stable and that market prospects are stable as well (Google). It is clear from the business overview that its business strategy centers on excellence in distribution, and diversification to include all key segments of the gaming industry,, across different hardware and software platforms, and including online. It is a business strategy centered partly on achieving scale economies, and akin to the business model for Amazon and Walmart, catering to the targeted market of gaming (Google; Gamestop). A PEST analysis reveals that out of these four external environment factors, the stable political environment in the markets where the company operates means that political factors are not as important as technological factors, owing to the rapid changes in the gaming industry, and in the technology and information technologies industries in general (Google; Gamestop) Gamestops competitive position is ok, given its stable prospects as reflected in its share price, but not particularly invulnerable, given large shifts in the gaming industry from new developments in technologies, so that share prices are stagnant even as the company tries to expand its footprint as well as its sales (Google; Gamestop) Its key strengths include its large store network and online network, its significant gaming properties and its continued drive to expand, which all translate to significant scale economies and