MGMT 479 Case study 3

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479

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Management

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Feb 20, 2024

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Erika Manche Management 479 Professor Morris September 20, 2023 Erika – You make a lot of good points in the paper. The primary issue is that you are not supporting your statements and recommendations with research. I recommend going beyond the case/text to support your recommendations – why the best option. There are several formatting/grammar issues that another proofreading may have caught. See my comments below. Good job overall. Mike Case Study 3T Best Buy Co, Inc. Value Chain A company’s value chain is various processes and activities which a firm goes through to create value for its customers and generate profit ultimately. Best Buy, a main electronic retailer in its industry’s value chain can be examined through its main framework, comprised of support and primary activities. One of Best Buy’s primary activities is inbound logistics. The company managed a large network of suppliers and distributing centers to make sure a constant flow of electronics and their related products into stores. These strategic partnerships with suppliers are crucial for the company’s success. Their operations include in store and online platforms where their products are sold and serviced. Their in store service, Geek Squad, provided significant value to the company (p. 162). The company’s outbound logistics has an extensive network of both stores and efficient online fulfillment ensure that the company’s orders are delivered in a timely manner and a vast availability of products to its customers. The company has also invested in marketing campaigns
Erika Manche Management 479 Professor Morris September 20, 2023 and in-store knowledgeable salesforce to strengthen customer experience and promote products. The company also offers post-sales services through product warranties, technical support with it s Geek Squad, and repair services. Best B b uy uses a variety of support activities, including fostering favorable business activities from suppliers, ensuring good quality products, and managing a supply chain which maintains a competitive advantage (pg. 168). Best Buy invests in technology and digital platforms and e-commerce to enhance consumer shopping experience and improving operations. The company also invests and focuses on hiring and training knowledgeable staff. Best Buy particularly focuses on its Geek Squad to offer expert assistance to customers.
Erika Manche Management 479 Professor Morris September 20, 2023 Changes to the Value Chain While Best Buy has remained successful in the electronic retail industry, it is important that they continue to adapt to the exterior business environment and evolve their value chain to stay competitive. Best Buy should continue to invest in digital technologies and online capabilities to evolve with consumer preferences in online shopping and mobile applications. The company should also invest in data analytics to utilize customer data that offer personalized promotions and recommendations which would strengthen a customer’s shopping experience. Best Buy should also work to improve their supply chain optimization. Continually working on their efficiency in order to reduce costs, lower inventory levels, and provide timely product availability is crucial for success in their industry. The company should also focus on expanding their service offerings such as tech support and home instillations. This would set them apart from the growing number of competitors, such as Amazon and Walmart (p. 168). Best B b uy should also concentrate on sustainability initiatives. More than ever, consumers are looking to buy from companies who are more eco-friendly, and are more willing to support a company who advertises their environmental efforts. The company could
Erika Manche Management 479 Professor Morris September 20, 2023 incorporate sustainability practices into their value chain. This could be done through sourcing eco-friendly products, optimization of energy consumption in their retail stores and distribution centers, and focusing on reducing waste. Focusing on customer service through employee training for in-store and online shoppers would create a more memorable shopping experience and set them apart from their competitors. Management Best Buy’s CEO Joly came up with a “turnaround strategy, ‘Renew Blue’ that focused a value proposition through providing “advice, service and convenience at competitive prices” (p. 171). This strategy has proved to be a successful approach to revitalizing the corporations operations and remodel its value proposition within the electronic industry. The company shifted focus to a customer-centric approach. They realized that creating exceptional customer service was vital to success. This focused on customer service, knowledgeable product information, and a comprehensive in-store and online shopping experience. Under these changes, Best Buy also invested more into its e-commerce capabilities and digital infrastructure. The company was then able to expand their online presence and provide customers with a seamless experience. Optimizing costs was also part of this initiative, working on supply chain efficiency improvement and adjustments to store footprints to contribute to further profitability. The company also recognized the need to strategic partnerships with
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