Digitalization as a Game-Changer: A Study on Swedish Video Game Industry

Abstract

The purpose of this study is to extend the understanding of the business model of video game retailers using online and physical stores. It focuses on the impact of digitalization on the retailing industry considering different actors like retailers and consumers. This is a qualitative multiple-case study based on deductive reasoning. 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. Findings show that video game retailers need to encourage engagement through incentives and other activities 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. It offers some insightful practical suggestions to retailers who are struggling hard to adopt digital transformations in the industry. Authors’ proposed research model, based on Sorescu et al. (2011)’s retail business model and the empirical findings, contributes 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.