What are the strategic issues and what would you do to resol

Assignment Help Strategic Management

Reference no: EM132920743

1. - Why did you choose this case?

2. - What is important about this case in relation to strategic management?

3. - What are the strategic issues and what would you do to resolve them?

Part 1: Introduction, problem statement, brief company background.

Gamestop is a household name. It's been the gaming store for decades bringing tons of joy and memories to countless families and children. Despite its long history, the company struggled to adapt to online retail and product differentiation by retail competitors. Stock prices fell for five years from $42.74 in 2015 all the way to $2.57 in April 2020. The company was at the verge of bankruptcy. Cue our knight in shining armor: Ryan Cohen.

Ryan Cohen is mostly known for his e-commerce venture as Co-Founder and CEO of Chewy. What started as a $15 million investment from venture capitalists, he turned around and sold to PetSmart in 2017 for a whopping $3.35 billion, the biggest e-commerce acquisition of the time. Cohen became the largest individual investor of Gamestop in September 2020. By December 2020, Cohen owned 12.9% ($74M) stake in GameStop and was appointed Chairman in January 2021. As the chairman, he was tasked with transforming GameStop from a failing brick and mortar video game retailer to something great. Although more than capable, Cohen had an extensive list of challenges ahead of him including revenue losses, hundreds of millions of dollars in debt, weak online presence, outdated management, failing strategies, abysmal customer service, thousands of physical stores, and hedge funds shorting the stock into bankruptcy.

Things to talk about:
• Paying off all of its debt ahead of schedule
• raising $551 million through an at-the-market equity offering program
• short squeezes in January, February, and June raising stock prices to $483, $348, and $345 respectively. Market cap from $300M in Aug2020 to $15B in June 2021
• NEW BOARD AND EXECUTIVE TEAM: ex chewy, amazon, and google execs
• new social media presence
• new customer service protocols
• Gamestop signs lease for massive distribution warehouse

Based on the article and what is already wrote I want you to write 2 paragraph answering to this question:
- What are the strategic issues and what would you do to resolve them?

Attachment:- Game Stop.zip

Reference no: EM132920743

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