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Master Thesis Is It Game Over for Physical Retailers?

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Master Thesis Is It Game Over for Physical Retailers? Master thesis Is it game over for physical retailers? A study on Swedish video game industry Authors: Farhana, Mosarrat Swietlicki, Daniel Tutor: Sattari, Setayesh Examiner: Pehrsson, Anders Semester: VT20 Subject: Business Administration Level: Advanced Course code: 5FE05E Abstract Purpose - The purpose of this study is to extend the understanding of the business model of video game retailers using online and physical stores focusing on the impact of digital platforms on the retailing industry within the context of video game industry considering different actor’s perspectives like retailers and consumers. Design/methodology/approach - This is a multiple-case study based on deductive reasoning. In this qualitative study, two cases of click-and-mortar retailers operating in the Swedish video game industry have been considered along with feedback from customers. Online personal interviews and semi-structured interviews have been conducted with retailers and customers respectively. Both primary and secondary data have been used to conduct the study. Findings - Findings show that video game retailers need to encourage engagement through incentives and other activities in order to create value and change up their formats and sales strategies through pricing to reach new customers and focus on design of their online store fronts to convey trustworthiness. Research limitations - A major limitation has been the COVID-19 pandemic spreading during the writing of this paper, which resulted in companies backing out to refocus their efforts. Another limitation has been the legal aspect as companies owned by bigger publishers denied to take part in the study to avoid revealing sensitive information. Practical implications - It offers some insightful practical suggestions to retailers who are struggling hard to adopt digital transformations in the industry. Originality - Authors’ proposed research model, based on Sorescu et al. (2011)’s retail business model and the empirical findings, contribute in the less explored domain of research on business models from retailer’s perspectives. Moreover, it adds values in industry specific study like the video game industry in Sweden considering all actors, which is argued as scarce. Keywords - Business model, Retailing Business model, Click-and-mortar, Video game industry i Acknowledgements This master's thesis has been carried out as part of the completion of the Masters Programme in Marketing at Linnaeus University, Vaxjö, Sweden, during spring 2020 by Daniel Swietlicki and Mosarrat Farhana. We would like to express our sincere gratitude and appreciation to a list of wonderful people who have made the journey of this research process possible through their valuable inputs and support. At first, we would like to thank our examiner Professor Anders Pehrsson for his valuable suggestions and guidance as well as insightful feedback during all seminars. His words have encouraged us to broaden the horizon of this research. We would also like to thank our tutor, Dr. Setayesh Sattari for her continuous support and guidance to improve the quality of our research. During the outbreak of COVID-19 pandemic, we have gone through the moment of ‘paralyzing’ in our work process. In that situation, our tutor has motivated us to be optimistic and has given us thoughtful practical suggestions to complete this research on time without compromising the quality. Moreover, we would like to thank our beloved families and friends for being there to support and motivate us. Finally, we would like to extend our deep gratitude to all participants and two retailers of the video game industry in Sweden for their valuable time, effort and thoughtful contributions in this study. Thank you! Daniel Swietlicki Mosarrat Farhana ________________ ______________ ii Table of contents 1. Introduction ....................................................................................................................... 1 1.1 Background ................................................................................................................... 1 1.2 Problem ......................................................................................................................... 3 1.3 Purpose and delimitations ................................................................................................ 6 1.3.1 Research questions ................................................................................................... 6 1.4 Report structure .............................................................................................................. 6 2 Literature review ................................................................................................................ 8 2.1 Business model and impact of digitalization ....................................................................... 8 2.1.1 Classification of e-business organizations .................................................................. 10 2.2 Retail business model (RBM) ......................................................................................... 17 2.3 Video game industry ..................................................................................................... 19 3. Conceptual framework ..................................................................................................... 21 3.1 Key concepts................................................................................................................ 21 3.2 Proposed research model ............................................................................................... 23 3.3 Assumptions ................................................................................................................ 23 4. Method ............................................................................................................................ 25 4.1 Research approach ........................................................................................................ 25 4.2 Research design ............................................................................................................ 25 4.3 Research strategy .......................................................................................................... 26 4.4 Data collection method .................................................................................................. 27 4.5 Data collection instruments ............................................................................................ 28 4.5.1 Structured interview schedule & interview guide ........................................................ 28 4.5.2 Operationalization .................................................................................................. 29 4.6 Selection of cases and respondents .................................................................................. 30 4.7 Data analyzis method .................................................................................................... 32 4.8 Ethical considerations ................................................................................................... 33 4.9 Quality criteria ............................................................................................................. 34 4.10 Methodology Summary ............................................................................................... 35 5. Information on retailer cases ............................................................................................ 36 5.1 Retailer Blue ................................................................................................................ 36 5.2 Retailer Green .............................................................................................................. 37 6. Analyzis and results .......................................................................................................... 38 6.1 Empirical data presentation ............................................................................................ 38 6.1.1 Retailers ................................................................................................................ 38 iii 6.1.2 Customers ............................................................................................................. 41 6.2 Analyzis ...................................................................................................................... 43 6.3 Corroborating themes .................................................................................................... 50 7. Discussion ..................................................................................................................... 54 8. Conclusions and contributions ....................................................................................... 59 8.1 Conclusions ................................................................................................................. 59 8.2 Theoretical contributions ............................................................................................... 60 8.3 Managerial implications ................................................................................................ 61 9. Limitations and further research..................................................................................... 63 9.1 Limitations .................................................................................................................. 63 9.1.1 COVID-19 data collection interference
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