Executive Summary We are going to use the consumption process model to increase market share and profits pertaining to the video game industry. Overall our model leans toward the back end of the products life cycle, commonly referred to as the disposal phase of the consumption chain.
If you map out the chain, you have your retail stores where you buy the product at the forefront. These would include Best Buy, Walmart, and Target. Here you buy and pay premium to have the game new once it releases. The second piece of the chain is known as storage which in this case are your corporate gaming stores such as Gamestop, Family video, Blockbuster and the newly launched Oogie games. At this second phase you can buy, rent or trade depending on the store for a set market price. Most times these games are used and thus are cheaper than buying new. If you trade in here you get little to no cash back for your games. Gamestop is an exception because it sells new and preorder copies as well which allows Gamestop to operate at both the first and second phases of the product’s consumption chain. The third step in the consumption chain is the usage phase of a products life cycle. Included here would be Redbox and Gamefly which are small services where you pay to only rent as many games as you wish for a smaller price than that of your bigger corporate stores. Finally is the disposal phase of the product consumption chain which is where we feel we can startup a new company, Garage Games. We feel we can give more back to the everyday gamer and still turn a profit. We will allow players to rent, trade and buy for the best possible value.
Overall our pricing model will allow for discounts pertaining to the renting and buying process, and we will pay premium pricing for used copy trade-ins. Here we will use a price point of purchase to corner the market and turn a profit. If we can give more value back to the