Best Buy Case Study

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Today, Best Buy advertises using a “Low Price Guarantee” (Best Buy, 2013). They will match prices on qualifying products if the consumer finds a lower price elsewhere (Best Buy, 2013). Best Buy claims to be the “world’s largest multi-channel consumer electronics retailer with store in the U.S., Canada, China and Mexico” (Best Buy, 2013). That being said, they are the 10th largest online retailer in the U.S. and Canada (Best Buy, 2013). Their loyalty program, Best Buy Reward Zone, is ranked among the best of its kind (Best Buy, 2013). Best Buy has over 145,000 employees worldwide (Best Buy, 2013).

In Best Buy’s 2013 Annual Report, they company discusses its current International Segment (Best Buy, 2013). In 2009, Best Buy acquired the
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Even if a consumer does find a product cheaper online, now they can take that offer into a Best Buy store for a price match. Instead of waiting for shipping, the customer can have immediate access to the product they are purchasing. They also have opportunities in growing their reach internationally. Best Buy already has locations in the U.S., Canada, China and Mexico (Best Buy, 2013). If they expand further, it can only provide larger international brand recognition.

The threats to Best Buy will always be its online competition, like Amazon.com. They must find a ways to remain competitive in the online retail market. With more international locations, they will gain more international brand recognition and with that online sales will grow.

A dual-brand strategy should be used only when there is a fragmented market (Ferrell & Hartline, 2011). There needs to be room for both brands to grow in the market place (Ferrell & Hartline, 2011). The dual-brands need to be positioned as competitors with different business strategies (Ferrell & Hartline, 2011). That gives the business the opportunity to test different theories and see what is working within a given market (Ferrell & Hartline, 2011). The dual-brand strategy is also helpful in cases where an established brand has more brand recognition than a new brand entering a market (Ferrell & Hartline, 2011). This strategy also helps new brands

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