The range of goods/services it offers is:
Computer games for all formats
Computer consoles
Computer accessories
Computer magazines and books
DVD’s
This shop’s target market is young people and gaming lovers.
I think this target market has influenced the location because the owners of Game Plc only want to put shops where it is convenient for their target audience and where there are a lot of people passing.
The range of goods such as computer games are influenced by the target market because only the type of games which are most likely to be bought by the target audience is kept in stock because there is no point of having games in stock which are unlikely to be sold.
Also I think Game Plc’s target audience is young people because they know that young people have more time on their hands and they can persuade their parents to buy games.
Another of my competitors is Game Station; its ownership is a public limited company. This shop is also located in the centre of town, but on Carr Street. Also there are many other Gamestation based in the UK. Advantages of it being located in this place is that it is in an area where many people pass by, this means it can attract customers to come into its shop. It is near its competitors, thus customers can be taken from them and prices of tier competitors can easily be checked so they know how the competitors are thinking. Disadvantages of being located here is that it is very expensive to rent property and there are high business rates, therefore this will increase their expenses and revenue expenditure. Another disadvantage is that it is near its competitors; this could mean loosing customers to them because the customers may be attracted by something in the competitors shop.
The range of goods/services it offers is:
Computer games for all formats
Computer consoles
Computer accessories
Computer magazines and related books
DVD’s
Trade games with customers
Buy and sell second-hand games to customers.
Pre-owned games, consoles and accessories.
It has a wide selection of these goods and has got a service, which they buy games from their customers for cheap and then selling it again for slightly higher. This means they can make slightly more profit and this will also make their customer relations better, which would result in better customer service and larger market share.
To start up my business I needed a source of income. I could get the source from taking out a loan from a bank. Also I can borrow money from my family. I think I will need about £100,000 to start up my enterprise. I think this estimate is about right because I did some research and about 58% of all game shop owners said it cost about £100,000.
My potential customers who will buy my products are mostly teenagers; this is because they are very keen in playing computer games at this age and have lots of time on their hand and parents will buy them the games.
I think my customers are prepared to pay a reasonable amount of money for the goods I am selling. I think this because in my questionnaire I asked a question of how much would you pay on the goods I am selling in a week. I believe they will visit my shop about 3 times a week because my shop will be cheaper than any other game shop.
The location of my business is shown below:
I think it will cost quite a lot to locate my shop there because it near the centre on town so it will cost more but there will also be more customers there too so I will make a profit.
Therefore this profit can be used to improve the business in the near future for example buying the latest stock for the new business or bringing in new features to the shop for example bringing in hardware from other countries.
I have decided to locate my shop at Tavern Street (See map). The reasons for this are that it is the main road through the centre of town so many consumers will pass by the shop and hopefully come in and also it has been found to be a convenient place for consumers. Also I am near my competitors; this means I could take some of their existing customers and see my competitor’s prices and get ideas from them. There are some disadvantages of this location such as being too close to my competitors therefore I could loose customers too them and they can ideas from me. I will have to pay high prices for rent and will also be charged high business rates by the Council.
