Galaki on 12 March 2012
| ioi said: They are basically like the UK version of Gamestop but they aren't run anywhere near as efficiently or profitably. I went to meet with the board of execs last year to pitch data services to them as they were struggling so much and needed to boost profitability. They have invested a lot in trying to capture digital download sales in-store and via apps, spend a lot of money trying to understand and characterise different consumer types and offer things like pre-order incentives to capture a larger percentage of week one sales but the bottom line is price, especially in a recession, and getting constantly undercut by the likes of Tesco (think Walmart) and Amazon really hurts their business. They also own GameStation and on of the best examples of their inefficiency is the fact there are often 2-3 Games and 1-2 GameStations in any decent town - their overhead costs are enormous. |
Sounds like management problem with exec not knowing how to run the business?
