Gamestop Analysis

Topics: Video game, Video game industry, Hong Kong Pages: 12 (3264 words) Published: March 9, 2013
brief profile of the firm
The GameStop Company, an American video game and entertainment software retailer, ranked 262 on the Fortune 500. GameStop represent as GME on the New York Stock Exchange. In 2011, GameStop stock price is $24.70 ended January 27, 2012, a 23 percent growth compared to $20.05 ended January 28, 2011. Compared to many firms that restore its business difficultly from Financial Crisis, GameStop have significant growth for its overall operating. One of the major reasons that GameStop can quickly recovered from economic recession is its international business.

GameStop Company major operations are selling new and used video game systems such as console, handheld video game devices, and mobile; software and accessories, PC entertainment software and related accessories.

typical market for your product
GameStop have its retailer store and online video game retailer.

Detail how large the company is
GameStop’s recorded $4847.4 million as company’s 2011 ending assets, and recorded $1807.2 million. Lower liability compared to its assets, lower risk to operating its business. Which can prove that GameStop have capability to doing business internationally. Data from GameStop 2011 annual report showed GameStop’s total revenue can be divided into 4 major parts. New video game software, which is $4,048.2 million, takes total 42.4 percent for its total revenue. New video game hardware took 16.9 percent. Used video game products took 27.4 percent. Other products took 13.3 percent. GameStop not only open video game retail store regionally, but also sales software from its online store, which allow costumers digitally download software online. In 2011, GameStop expended the PC download to more than 1500 games, which counted 34 percent of its total PC software.

where they already are in business
GameStop owned 4503 retail store in U.S. GameStop’s also have its international business, and GameStop owned 2,180 stores outside of United States. Now GameStop sell its product into 17 countries, those are U.S., Canada, Italy, France, Germany, Spain, Sweden, United Kingdom, Norway, Denmark, Austria, Finland, Switzerland, Portugal, Australia and New Zealand. Those countries are located in North America, Europe and Australia. In 2011, GameStop operating sales revenue in U.S. market is $6,637 million, accounted for 60 percent of total U.S. video game purchase. In 2012, its international business has total sales revenue $2913.5 million, takes 30.5 percent of GameStop total sales. Detailed, GameStop business in Canada have revenue as $498.4 million, Australia $604.7 million and Europe $1810.4 million.

their typical mode of entry
GameStop’s major typical mode of entry is wholly owned subsidiaries and majority-owned subsidiaries, Company’s official website stated from 2008, GameStop acquired European leading video game retailer and world video game retailer, such as Micromania, Jolt Online Gaming, Kongregate, and Spawn Labs. GameStop also use franchising since 2008 it started Gamesworld franchise in Ireland and the United Kingdom.

GameStop has total 77 suppliers around the world, 50 of its suppliers located in Asia, 3 suppliers located in Europe, and only 1 located in America.

Target Country Analyses:
Hong Kong
Political structure: Hong Kong is a special administrative region of China, with its own mini-constitution known as the Basic Law. As a China’s territory, but it has a distinct political structure with China. Hong Kong has its own government, China guaranteeing "a high degree of autonomy" until 2047. Presided over by a chief executive, whose appointment is strongly influenced by China. (EIU)” Not like China’s mainland communist totalitarianism, Hong Kong’s political system is more representative democracy, which gives Hong Kong a chance to build its free market and have more opportunity to attract foreign company’s investment


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