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Gamestop Analysis

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GameStop

They purchase hardware and games from game manufacturers and other sources to meet customer demands. For example, they are affiliated with drop-ship merchants on selected products depending on their demand. Therefore, they serve as an unique entity of traditional retailer and a prime example of a Value delivery network.
For instance, under a downstream model they purchase systems and games and accessories from original manufactures and various 3rd party suppliers ( accessories) Their model has raised the bar on video game retail and capitalized the gaming culture unlike their competitors Best Buy, Wal-Mart or Toy r us. Furthermore, Gamestop inc. relies on a strong marketing channel with the manufactures to consistently attract customers. For example, Gamestop would have exclusive offers with new releases such as limited edition products, game-add on or ever-popular DLC content. However, Gamestop Inc has been in the news as a disintermediation in their industry.
Gamestop has a lucrative marketing strategy for used games that has left many game and system manufactures with a sour-taste in their mouth. Gamestop buys back used games and sell them at a disturbing markup. Gamestop is the largest video games retailer but a considerable portion of it business is, in fact, used games. As a result, they have a full 182,000 sq ft refurbishment center in Grapevine Texas that serves as a, in my opinion, a hybrid upstream and downstream channel. They receive games and systems in various conditions and return them to resalable take products. This is not as simple as wiping a disc; it includes repairing games systems hardware or cosmetic wise. The refurbished products are sent to a local store or sent to their e-commerce channel. Their focus is to increase the savings to their customers but this model has lead to reactions from software companies to develop

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