GameStop Executive Team Meeting - Reset Strategy
In this exclusive meeting for the GameStop Executive Team, a comprehensive analysis of the company's background, financials, and recommendations was presented. The focus is on reshaping the company's strategy to adapt to changing market trends, such as consolidating stores, shifting focus to e-sports, collectables, and used games, and developing a dedicated platform for amateur developers and gamers to interact and play. The presentation suggests innovative approaches to revitalize GameStop's business model and engage a broader audience in the gaming community.
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Presentation Transcript
GameStop GameStop Easy Georgie Boy, We re Hitting Reset! Prepared exclusively for The GameStop Executive Team ALAN NAPIER | RYAN MCCARTY | JUSTIN BOSLEY | ASHLEY BRUNER JANUARY 9, 2020
Agenda Background Recommendation Analysis Financials Implementation
Background Recommendation Analysis Financials Implementation Background Retail Trends Market movements Significant value declines
Background Recommendation Analysis Financials Implementation Recommendation Cost Risk Benefit Sell Merge Acquire Downsize Esports Center Gaming Collaboration Sponsoring Gamers
Background Recommendation Analysis Financials Implementation Recommendation Cost Risk Benefit Sell Merge Acquire Downsize Esports Center Gaming Collaboration Sponsoring Gamers
Background Recommendation Analysis Financials Implementation Recommendation Consolidate stores Do not renew current leases in shopping malls and other locations Start moving away from selling new games
Background Recommendation Analysis Financials Implementation Recommendation Reshape the primary focus Create a community for e-sports and gaming sessions Focus brick and mortar sales on collectables, used games, and very popular games.
Background Recommendation Analysis Financials Implementation Recommendation Develop a website completely dedicated to amateur developers and all gamers Allow developers to submit games to be uploaded for free Have a vetting process for security and content sensitivity Allow everyone to play unpublished (site games) for free Develop a subscription to play published games
Background Background Recommendation Recommendation Analysis Analysis Financials Financials Implementation Implementation Analysis: Introduce a subscription service for online gaming Basic (5) $40 $25 $15 Premium (10) $60 $35 $20 Platinum (25) $80 $45 $25 Annual 6-Month Monthly
Background Background Recommendation Recommendation Analysis Analysis Financials Financials Implementation Implementation Analysis: Introduce a subscription service for online gaming Most Popular! Best Deal! Basic (5) $40 $25 $15 Premium (10) $60 $35 $20 Platinum (25) $80 $45 $25 Annual 6-Month Monthly
Background Background Recommendation Recommendation Analysis Analysis Financials Financials Implementation Implementation Analysis: Allow developers to make money (5%) on published games based on downloads and subscriptions Based on Premium (10 games) and monthly subscription: 20/$10=$2 game value With 5% commission, $0.10 per game Basic (5) $40 $25 $15 Premium (10) $60 $35 $20 Platinum (25) $80 $45 $25 Annual 6-Month Monthly
Background Recommendation Analysis Financials Implementation Financials: Assumptions Property Restructuring Comprehensive Financial Trend New Online Strategic Plan
Background Recommendation Analysis Financials Implementation Financials: 5 year Plan Plans Price Percentages 5,600,000 $112,000,000 $67,200,000 $134,400,000 $313,600,000 10,000,000 $200,000,000 $120,000,000 $240,000,000 $560,000,000 Basic Platium Premium Total $40 $60 $80 50% 20% 30%
Background Recommendation Analysis Financials Implementation Financials Fiscal Year Stores Average Monthly Cost Monthly Rental Cost Monthly Cost/Sq. Ft. Annualized Cost/Sq.Ft. 2018 2019 2020 2021 2022 2023 5,830 3,826 2,786 2,000 1,354 - $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 7,579,000 $ 4,973,800 $ 3,621,800 $ 2,600,000 $ 1,760,200 $ - $ 18,947.50 $ 12,434.50 $ 9,054.50 $ 6,500.00 $ 4,400.50 $ - $ 568.43 $ 373.04 $ 271.64 $ 195.00 $ 132.02 $ - Fiscal Year Stores Average Monthly Cost Monthly Rental Cost Monthly Cost/Sq. Ft. Annualized Cost/Sq.Ft. 2018 5,830 2019 3,826 2020 2,786 2021 2,000 2022 1,354 2023 - $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 7,579,000 $ 4,973,800 $ 3,621,800 $ 2,600,000 $ 1,760,200 $ - $ 18,947.50 $ 12,434.50 $ 9,054.50 $ 6,500.00 $ 4,400.50 $ - $ 568.43 $ 373.04 $ 271.64 $ 195.00 $ 132.02 $ -
Background Recommendation Analysis Financials Implementation Implementation Recommendation Review
Background Recommendation Analysis Financials Implementation Restructuring Stores Step 1 Goals Target Market Personnel Marketing Let leases run out Purchase & refurbish 10 new stores Suburban regions Families College towns Chris Homeister, oversight Retain as many current employees as possible Focus on full- time employees Magazine Location-based social media Offline (billboards, etc.)
Background Recommendation Analysis Financials Implementation Restructuring Stores Step 2 Goals Target Market Personnel Marketing Open new stores Acquire additional properties Begin advertising for programming events Suburban regions Families College towns Nearby gamers (within 50 miles) Competitive gamers Chris Homeister, oversight Focus on full- time employees Magazine Location-based social media Offline (billboards, etc.) Targeted YouTube ads Location-based: SnapChat
Background Recommendation Analysis Financials Implementation Gse Step 1 - Preparation Goals Target Market Personnel Marketing Channels Buy popular games from existing sites Develop site Launch beta site to developers Existing hobbyist game developers Primary: age 21-35 Early adopters Frank Hamlin, oversight Hire white-hat hackers as cyber security Outsource site creation, utilize current online team Incentivize game scouts Magazine Targeted YouTube ads Universities
Background Recommendation Analysis Financials Implementation GSe Step 2 - Launch Marketing Channels Goals Target Market Personnel Launch site to free & paid subscribers Marketing plan for gamers Existing hobbyist game developers Light gamers Age 16-35 Early adopters Competitive gamers Frank Hamlin, oversight Additional white-hat hackers Game testers Magazine Targeted YouTube ads Social media YouTube gamer sponsorships New stores
Background Recommendation Analysis Financials Implementation GSe Step 3 - Expand Marketing Channels Goals Target Market Personnel Upgrade new games to subscription gamers Introduce Unlimited plan Competitive gamers Light gamers New developers Young gamers (age 10-16) Frank Hamlin, oversight Additional game testers Magazine Targeted YouTube ads New stores Social media SnapChat TikTok
Background Recommendation Analysis Financials Implementation Risks & Mitigation GSe Cyber security White-hat hackers Rating system Reporting feature Parental controls Low-quality games Vetting process Implicit knowledge Lack of subscribers Sponsor gamers Vetting for high-quality games Loyalty incentives
Background Recommendation Analysis Financials Implementation Risks & Mitigation Store Expansion Financing Subscription plan Venture capital Strategic purchases Customer base Relevant programming
Summary Content Community Data
Questions? THANK YOU
