(8 pages of text)
GameStop has effectively utilized a business model based on retailing new and used electronic games. The case allows the instructor to illustrate the strategies that GameStop used to consolidate its game retail business in the United States. It also provides the instructor with the opportunity to explore the peculiar target market segments in the electronic gaming industry. Finally, the instructor can explore competition and future expansion into different markets with dissimilar environments. Management responses to the following questions regarding company growth are explored: 1) Can you continue your aggressive store growth? 2) What about digital downloading? 3) Will the used business continue to grow?
Students will learn how the different components of a strategy combine to create a competitive advantage. The case demonstrates that, although competitors may copy one or more parts of a strategy, it is the holistic manner in which the parts combine that creates the most difficulty for others attempting to copy the strategy in its entirety. Students will also learn how to shift through different options. The case is an excellent vehicle to develop the notion of capabilities as a means for achieving competitive advantage.
This case is suitable for a capstone strategy course or an advanced elective in competitive strategy at the MBA level. It has been used with MBAs and executives in the United States and Europe in classes dealing with strategic management. The case, which teaches extremely well, is best used in a case discussion format.
The “outcome to objective” methodology is used to analyze the case. This framework is an operationalization of the value chain framework, linking activities (primary activities) and resources (support activities in the value chain framework) to outcomes that customers value. The key insight that emerges from this methodology is clarity in how different activities interact to deliver value to customers and shareholders. Instructors can easily modify the analysis to use other frameworks, such as SWOT or Porter’s Five Forces.
United States, Large, 2006
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download