Gamestop Homework Essay PDF

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With the increased growth of the Gaming industry, GameStop had to come up with the most generic competitive strategy available. The main aim of the company was to ensure that the company has an increased advantage over the other rivalry companies. Their strategy is to beat the competition out of the Video Game industry. This has been done through lowering the cost of their products hence drawing the attention of their target audience. They have also lowered their production price and produce different products from those of their competitors (Porter, 2008). The target segment for GameStop is divided into three. They have the devoted gamers who are 41% of the targeted customer. They play video game for long periods for up to seven days in a week. They prefer categories like action games, role playing games, sports and stimulation games. They mostly play using many consoles and prefer new games and hardware. Social gamers represent 31% of gamers and play video games for short periods four or five time a week. They mostly play sport and fighting games categories. They use either one or two consoles. The last segment is the casual gamers who represent 28% of gamers and play video games twice a week for short periods. They prefer puzzles and strategic games and use only a single console. Just like the marketing segments, the targets customers are also divided into three. The Electronic Game Enthusiastic lies in the devoted segment. They do not care about the price and look for specialized products (Porter, 2008). The value oriented gamers, lie in the casual segment, prefer used games and other promotions available in the GameStop stores. Seasonal Gift Givers prefer new games and are most common during peak seasons due to the numerous promotions. With such a diverse target customers, GameStop has had to diversify their activities to ensure that every customer acquires what they need. They allow customers to trade in games and consoles. They also sell new and old games in retail and online. They also target international gamers hence the increased growth of retail shops all over Europe, Mexico and South Korea. Through identifying their preferred game category, they are sure that they reach the gamers....