An Investment Of Best Buy

1267 Words Nov 15th, 2014 6 Pages
An investment in Best Buy would be a complicated decision. Although Best Buy’s shares have historically declined due to increased e-commerce competition and poor holiday sales, we believe that this presents an unprecedented buying opportunity. The current trend within the electronic retailing industry makes Best Buy’s current capabilities and resources ever more relevant in developing a competitive advantage. We believe that Best Buy has the following resources and capabilities that could be further developed to become sources for competitive advantage: customer services, Best Buy Mobile, international presence, and private label. As technology advances, the electronic retailing environment is trending towards more complex products and a wider product assortment. Consequently, consumers not only want informative customer service to navigate their way around complex offerings, but they also want a full service team to help install and repair new products and systems. In addition, Best Buy Mobile allows customers to browse phones while comparing services plans, an experience competitors cannot replicate. Moreover, if Best Buy can penetrate emerging markets with a growing middle class, Best Buy can expand its revenue and create brand loyalty. Finally, since Best Buy has a strong brand image in consumer electronics, the company can be successful in selling electronics under its exclusive brand label. The current risks in investing in Best Buy are that…

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