Question

How is Threat of New Entrants and Threat of Substitutes prominent in GameStop's industry?

Answer 1

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GameStop's industry is the American based company which deals in video games, gaming merchandise, etc. They are having a lot of threads of new entrants as well as the substitute because if the new entry comes then their customers will shift to that game product and shifting of the customer means that the customers will reduce and also the competition will be increased in the market. New arrival and the substitution game product will always place as a competitor of your products in the market and you need to be best to remain one step ahead of your competitors. It reduces the profitability of the company e and you start thinking that what more you can do with your gaming product so that it will rise again in the eyes of customers as well as in the market. Here, technology plays a key role in gaming products as if you are having advanced technology with you then your product will be productive and interesting in the eyes of customers. Undoubtedly, new arrival of giving product always attract the customers but if your product is is good enough then your customers will not fall and you will continue to rule the market with your gaming product and also your substitution product will fail if you try to provide satisfaction to your customers.