Case Study: Gamestop

Background GameStop stores have faced many competitors through the years, such as Best Buy, Target, Walmart, etc. While these stores offer mulitple departmets, GameStop’s main focus has alwas been gaming. It is no wonder when the onling gaming industry was introduced, the threat to GameStop was grave. “With more than 6,600 stores throughtout the United States, Austrailia, Canada, and Europe, GameStop’s management team wants to be the premier destination for gamers” (p. 58). However many obsticles GameStop has been faced with, it has been able to capitalize stragtigically. The question remains, can GameStop survive with its brick-and mortar stores?
Perform a five forces analysis of the online gaming industry.
Force 1: Threat of new Entrants
Requiring only a web/game developer, online gaming companies have much competition, which makes it less appealing.
What are the implications of the five forces analysis for GameStop? Based on the analysis of the five forces it is apparent that online gaming is extremely competitive, and not appealing. This boast well for GameStop’s brick-and-mortar stores, as it suggests that because the online gaming industry is so competitive it may deter its customers causing them to look at a more familiar company. GameStop not only has physical stores can go to, but also provide a wide rage online store with competitive pricing.
What role have information systems played in the five forces you
Intertwined within the five force analysis of the online gaming industry is information systems. Information systems allows a company to function efficiently and effectively. Information systems allows companies to create, control, store, find, and access data. Based on these computers based tools, the threat of new entrants’ information systems plays a high role, as technology and systems develop it makes it easy for individuals to enter the industry. Information system also plays a role in supplier power, as it allows the companies within the industry to reach potential customers with marketing strategies through the internet. Moreover, supplies the ability to processes accounts and employee management. In our constantly growing technological world information systems plays a huge part. Rivalry among competitors in the online gaming industry is intense. The rivalry intensity only amplifies when you have existing companies like GameStop who dabble in online