B. Value chain analysis of \"GameStop\" (page limit for this analysis is 3-5 pag

Question

B. Value chain analysis of "GameStop" (page limit for this analysis is 3-5 pages): Your value chain analysis should include analysis for the company and for at least ONE of the competitors (you identify) so that you can assess the company's cost competitiveness in relation to its rivals. Be sure to identify major activities undertaken to deliver value to the customer, and value chain activities that firm does more or less well (or more or less efficiently/cost effectively) than competitors. Your analysis should help you understand the internal cost structures of the firm (vis -a- its competitors), and the resources and capabilities of the firm.

Explanation / Answer

Gamestop is an American based video game retailer.The company operate majorly through retail outlets. They also have e-commerce websites gamestops and EBgames.com.GME is one of the worlds largest video game retailer.The value chain of the company of Game stop connects to the value chain of the suppliers majorly on the upstream side and to the buyers on their downstream side. Michael porter Five force model identified the set of linked general activities which is appicable for every firm

Theiur primary business operations comprises of game development, inbound and outbound logistics, customer network and promotion. There are lot of competitors in to the same segment especially through e-commerce ( amazon,bestbuy, Toys'R' etc.).There is stiff price competiton because of low product differentiation. Customer loyalty is important for this segment as they would like to think on the switching cost from one model to other. SOny X plkay has high investment category which make middle class people to tend more on mid segment variants of Game stop.Their major console release are expected soon which may create huge impact on positive side of the market. Research and development part is very crucial, along with that market analytics which determines the customer requirement. Incorporating advanced VR, Artificial intelligence into their game zone will definetely give them upper edge.

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