GameStop Corporation - Essay Example

? Organizational Knowledge Introduction Introduction of the issues faced and the position of GameStop Corporation in US market The retail sector is described as one of the oldest industries in the world that evolved to a significant extent in this age of globalization (Moser &Vander, 2003). Globalization offered a considerable impact on retailing that evolved only after the emergence of the desire of the families or individual to exchange their surplus products with other things as per their requirements like tools, labor, machines and many others. Other than this, in this competitive scenario, the essence of retailing changed adversely and gave rise to a centralized market situation where the rate of exchanged is extremely high as compared to others (Feldman, 2003). In this market, metal coins and paper notes are also exchanged for other goods which enhanced the scope and extent of retailing to a high extent in the recent decades. Side by side, introduction of online stores also enhanced the range of total sales in retaining sector in today market scenario (Moser &Vander, 2003). However, in spite of huge advancement, the Retail Management sector presented numerous interesting challenges that gave rise to more innovative solutions. The most vital and noteworthy issue that is hampering the portfolio of the sector of retaining is commoditization. It is a trouble-some issue that arose a few decades before that mainly highlights price wars and fierce competition among the rival players of the market. Due to which the position and brand image of numerous reputed organization operating successfully in this segment is experiencing massive downfall resulting in reduction of the profit margin and total sales of GameStop Corporation of US. As a result, the position of GameStop Corporation in the markets of US is reducing at a significant extent, which is quite insignificant (Moser &Vander, 2003). Other than this, another noteworthy issue which is hampering the rate of growth of retail sector is the selection of innovative methods to interact with the customers to make them prospective. Due to which numerous prospective sales targets are not getting fulfilled resulting in downfall of the total profit margin and revenue of the organization (Feldman, 2003). This cause also marked a significant downfall of the position of US among other big players around the globe (Moser &Vander 2003). Detailed background information of the issue of commoditization described above Historical Origin of the problem: Due to the entrance of numerous new entrants, the extent of competition aroused, resulting in the problem of commoditization in the segment of retailing. Other than this, as entry in this segment do not require huge rate of investment and so it’s quite easy for the new entrants to enter it (Moser &Vander, 2003). As a result, the segment became extremely aggressive and the rate of switchovers also increased to a significant extent (Nonaka & Nishiguchi, 2001). In case of pricing problem or lack of trendiness, the customers immediately shift over towards other brands resulting in loss of prospective customers and profit margin as well (Moser &Vander, 2003). In order to cope up with this problem, I instructed my juniors and other administrative officials to maintain a competitive margin of the products so as to retain the customers towards their brands and products. Along with this, I also decided to introduce ad present more concentration in introducing varied types of innovative designs and features in the products lines so as to make the customers attracted towards their products as compare to other rival players (Moser &Vander, 2003). Otherwise, they might not be able to maintain a sustainable position in the market among other players (Tsoukas, 2005). This proved quite successful for the organization thereby amplifying the profit margin (Moser &Vander, 2003). Proposed Solution Not only this, according to Cooper, (1999), to maintain the portfolio of the products, just like the other retailers I also tried to implement the strategy of offering varied types of free gifts or discount coupons to the customers so as to retain them towards their brands or product lines after discussing with my seniors. Otherwise, it might become extremely difficult for the retailers just like us to retain the customers for the long run in this competitive scenario (Cooper, 1999). Along with this I also suggested to offer bonus on the packs of the video or computer games pre-booked in the festive occasions to improve the revenues. Moreover, the facility of free shipping is also presented on the purchase of $ 25 and above which also proved extremely effective for us (Tsoukas, 2005). Side by side, I also presented the idea to offer new collection of accessories and interesting games at fantastic prices to attract the customers and the kids towards the brand. Therefore, in order to maintain the position and fame in US market, we started dropping the prices of our products to maintain a consistency among other rivals players. It proved effective for us in the US market to maintain the profit margin and total sale as compared to other players (Moser &Vander, 2003). So I also implemented the similar strategy in improving the demand of the product lines of my organization in other retail stores as well present in Canada, Australia and others. Hence, it may be stated that due to such underlining troubles, the problem of commoditization became an issue of international concern (Tsoukas, 2005). Detailed background information of the issue of interaction problems with the customers as described above Historical Origin of the problem: the problem of interaction with the customers aroused mainly after the introduction of internet, Internet gave rise to the introduction of online sites and online shopping notion (Moser &Vander, 2003). As a result, most of the customers of recent age try to become aware about all types of new and innovative deals and discounts of the product lines through online sources rather visiting the shops. So, it is extremely essential to maintain an updated online site so as to present varied types of information to the customers to retain them for longer period of time (Nonaka & Nishiguchi, 2001). Otherwise, if the retailer fails to present the updated information about the products, soon the customer would shift towards other brands thereby reducing the rate of sale and ROI of GameStop Corporation (Moser &Vander, 2003). Not only this, the brand image and reputation of the organization also reduce to a significant extent as compared to other brands operating in the market. So, it is extremely essential to know the proper mode of interaction or communication to attract large array of customers towards their brands as compare to other rival players (Tsoukas, 2005). Then, I took the role of a leader and presented an idea before the entire members of the organization, that social media is the best option to present our best deals of the day. This might prove effective in improving our total sales and profit margin of the day along with equity of the firm as well (Moser &Vander 2003). This is because it is an age of information technology and every individual is just crazy about social media like facebook, twitter, orkut and others (Feldman, 2003). So, it is the best way to increase the awareness of the customers towards new product lines and features. Thus I recommended it among other members of my organization to retain our customers in the market for long run. This is because now no customer is interested in visiting the stores to know the new features or products of the organizations or brands. Thus it is believed to be the best idea in this age. Each and every member of GameStop Corporation appreciated me in presenting such a wonderful opinion in front of all and that was approved by all others. And so the idea of social media promotion became implemented resulting in amplification of the total market share and profit margin of the product lines along with range of customers as well (Feldman, 2003). Other than this, I also stated to present emails to our existing customers about our discounted deals in varied festive seasons so as to make them aware about it. This is another effective decision that improved the sale and revenue of our organization to a significant extent as compared to previous financial year (Moser &Vander, 2003). Success and failure of the proposed actions The proposed actions in order to cope up with the issues described above, proved quite successful as it helped to retain the market image and goodwill of the organization among others. Other than this, it also helped in improving the rate of customers as well as profit margin of the organization in the market as compared to other rivals. Apart from this, the reputation and reliability of the customers towards the brand also enhanced to a considerable extent resulting in amplification of the ROI and financial condition of the organization. Thus it can be stated that the propped solution proved successful for GameStop Corporation and also helped in the future prospects of mine (Moser &Vander, 2003). Hence, it may be said that after presenting the solutions to the proposed problem, I also geared huge range of knowledge and updated information regarding the market scenario of the recent age. As a result, it also enhanced my interior managerial or leadership skills and abilities that might help me in my future age (Moser &Vander, 2003). Past Experience According to Moser &Vander (2003), it is also seen in early stages that in case of excess competition, it becomes extremely difficult to maintain the similar portfolio in the market. Therefore, on the basis of the rationalist theory, it may be depicted that in order to cope up with such fierce competition, updated product lines and features is the only way to retain the market share of any organization (Moser &Vander 2003). Along with this, marginal price of the products (such as PC games, video games, accessories) is also extremely essential to maintain the portfolio of the organization in the market among others. Thus on the basis of the knowledge that I gathered from rationalist theory, I presented the above solutions to the higher members of the organization that proved quite effective for them in long run. It also enhanced the rate of sustainability of the organizations in the market of US in long run (Moser &Vander, 2003). Problems that still exists In spite of the recommended solutions, the extreme rivalry among the market players still exists resulting in lowering of the profit margin and revenue. Along with this, due to extreme competition, the rate of swift-over of the customers is also quite high in this sector in US market as compared to others in the globe. So, it is always necessary for us to update the features of the product lines as well as introduction of the innovated products in the market to attract new range of customers towards it (Moser &Vander, 2003). Conclusion Conclusively, it may be stated that in order to gear up in such a competitive scenario, it is essential to continuously update the features and product lines of GameStop Corporation. Otherwise, it may not retain in such an aggressive market situation that I understood after analyzing the market trends of US. Only then, I presented such type of advices and solutions to the members of the organizations. So it became successful for the organizations to cope up in such type of market scenarios. References Cooper, D. E. (Ed.)., (1999). Epistemology: The classic readings. Malden, MA: Blackwell. Feldman, R. (2003). Epistemology. Upper Saddle River, NJ: Prentice Hall. Moser, P. K., & vander Nat, A. (Eds.). (2003). Human knowledge: classical and contemporary approaches (3rd ed.). New York, NY: Oxford University Press. Nonaka, I., & Nishiguchi, T. (Eds.). (2001). Knowledge emergence: social, technical, and evolutionary dimensions of knowledge creation. New York, NY: Oxford University Press. Tsoukas, H. (2005). Complex knowledge: Studies in organizational epistemology. New York, NY: Oxford University Press. Read More