brief profile of the firm
The GameStop Company, an American video game and entertainment software retailer, ranked 262 on the Fortune 500. GameStop represent as GME on the New York Stock Exchange. In 2011, GameStop stock price is $24.70 ended January 27, 2012, a 23 percent growth compared to $20.05 ended January 28, 2011. Compared to many firms that restore its business difficultly from Financial Crisis, GameStop have significant growth for its overall operating. One of the major reasons that GameStop can quickly recovered from economic recession is its international business.
GameStop Company major operations are selling new and used video game systems such as ...view middle of the document...
S. GameStop’s also have its international business, and GameStop owned 2,180 stores outside of United States. Now GameStop sell its product into 17 countries, those are U.S., Canada, Italy, France, Germany, Spain, Sweden, United Kingdom, Norway, Denmark, Austria, Finland, Switzerland, Portugal, Australia and New Zealand. Those countries are located in North America, Europe and Australia.
In 2011, GameStop operating sales revenue in U.S. market is $6,637 million, accounted for 60 percent of total U.S. video game purchase. In 2012, its international business has total sales revenue $2913.5 million, takes 30.5 percent of GameStop total sales. Detailed, GameStop business in Canada have revenue as $498.4 million, Australia $604.7 million and Europe $1810.4 million.
their typical mode of entry
GameStop’s major typical mode of entry is wholly owned subsidiaries and majority-owned subsidiaries, Company’s official website stated from 2008, GameStop acquired European leading video game retailer and world video game retailer, such as Micromania, Jolt Online Gaming, Kongregate, and Spawn Labs.
GameStop also use franchising since 2008 it started Gamesworld franchise in Ireland and the United Kingdom.
GameStop has total 77 suppliers around the world, 50 of its suppliers located in Asia, 3 suppliers located in Europe, and only 1 located in America.
Target Country Analyses:
Political structure: Hong Kong is a special administrative region of China, with its own mini-constitution known as the Basic Law. As a China’s territory, but it has a distinct political structure with China. Hong Kong has its own government, China guaranteeing "a high degree of autonomy" until 2047. Presided over by a chief executive, whose appointment is strongly influenced by China. (EIU)” Not like China’s mainland communist totalitarianism, Hong Kong’s political system is more representative democracy, which gives Hong Kong a chance to build its free market and have more opportunity to attract foreign company’s investment
Legal environment: Legal system
Based on English law and the Basic Law (a mini-constitution underpinned by an international treaty). Foreign affairs and defence fall within the ambit of the Chinese central government; Hong Kong has autonomy in other matters (EIU)
Income wealth: In 2011, World Bank showed Hong Kong’s estimate population as 7,071,600. The GDP per capital is $34,457, and have a 7 percent growth compared to 2010. Hong Kong
Population 7071600, PPP $51490, GDP per capital 34457, GDP growth 7%
Video Game Market Size
In 2011, Hong Kong’s total revenue of video game market is 427.0 million dollar, which is 9.5 dollar per capital. Hong Kong’s video game market size have a high rate of rise, since its revenue 253.5 million in 2006, rose 68.5 percent through 2006 to 2011, and predicted to rise average 4.45 percent in the future...