Best Buy Case Study

2045 WordsMar 3, 20139 Pages
Best Buy Case Study Review [pic] Brad Dexheimer BA 790 – Spring 2013 Professor James Mastrangelo January 30, 2013 TABLE OF CONTENTS Executive Summary ...................................................................................... 3 Problem/Opportunity Statement ................................................................. 4 External Environment Analysis .................................................................. 5 Demographic .......................................................................................... 5 Economic ................................................................................................ 5 Political/Legal…show more content…
External Environment Analysis Demographic Segment: Due to the vast array of products that Best Buy offers, there is no single customer profile accounting for a significant portion of overall sales (Hitt, Ireland, & Hoskisson, pg.59, 2011). The United States is facing an aging population and Best Buy should look at offering products and use marketing approaches that appeal to older customers (Hitt, Ireland, & Hoskisson, pg.59, 2011). With college age consumers struggling to find jobs in a tightening market, their discretionary spending has been reduced. Women also have been increasing their influence and purchasing power, something that can not be overlooked by Best Buy. Economic Segment: The economic slowdown has affected the business operations of Best Buy and they are facing consumer related challenges at every point in the market. Due to the economic slowdown in the United States, dramatic and long lasting changes have occurred in the behaviors of consumers. In 2008, Best Buy announced that all of its corporate employees were eligible for a voluntary seperation package in order to significantly reduce their corporate expenses (ecoustics.com, 2008). Political/Legal Segment When Best Buy entered the Asian market by acquiring Jiangsu Five Star Appliance Company, they helped bridge the learning curve of international policies and procedures by

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