Best Buy Case Study 1
Best Buy Case Study
Empire State College
Best Buy Case Study 2
Best Buy is one of the world's largest and most diversified retailers of home office products, consumer electronics, and entertainment software with $16.62 billion in annual revenue as of February 26, 20111 (wikipedia.org). This paper scrutinizes how in spite of a global economic recession, Best Buy continues to generate increased in-store sales. How their use of in-store analytics …show more content…
Small business: The customer who runs his or her own business and has specific needs relating to growing sales and increasing the profitability of the business11 (Marketing, 10th Edition pg. 136).
Based on the research that Mr. Seldon completed, Best Buy concluded that their customer population was mainly made up of the “Jill” segment. This segment of their demographic wants more assistance in the store; a more “personal shopper” feel. They are also interested in how the potentially purchased item will affect their lives and were less interested in the technology. Best Buy also went from a predominately male staff to a more gender diverse staff. Since this “Jill” segment influences 89 percent of all purchases, it behooved Best Buy to accommodate their core clientele.
Accordingly, Best Buy implemented common sense solutions once they understood the issues that needed to be addressed. Many related products were bundled together; in many stores, kids had designated play areas while their moms shopped. To help with installation on store or internet purchased items, Best Buy enlisted the help of Geek Squad so customers need not concern themselves with the equipment set-up. This adaption to the company’s customers has allowed Best Buy to be one on the most successful companies in the United States. Forbes magazine named Best Buy “Company of the Year” in
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Like any successful business, Best Buy has to be on the cutting edge to succeed in today’s market. They do this by exploring what technologies and services other companies display all around the world. Best Buy also pays attention to the changing of times, realizing what’s dated and what is on the cutting edge.
Best Buy Co., Inc. is a multinational company in the United States and it deals, with consumer electronics, and accounts 19% of the business. The company also operates in Mexico, Puerto Rico, China, and Canada. Some of the subsidiaries of the company include CinemaNow, Geek Squad, Pacific Sales, and Magnolia Audio Video and operates in both Future Shop label, and Best Buy in Canada. Best Buy Co. Inc and its subsidiaries operate more than 1,150 stores internationally and domestically. The company also operates more than 100 “ZoomShops” or Buy Express Automated retail Stores, operated by the Zoom Systems, in both malls and airports in the entire country of the U.S. The company is headquartered in Richfield, Minnesota, U.S (Scott,
Target Corporation’s (NYSE:TGT) share price declined nearly 7.5% in the last month alone, amid the potential threat of higher taxes from Donald Trump’s new administration. Aside from higher taxes, the company looks in a very solid position to expand its profitability and dividends.
Best Buy is one of the best electronic retailers in the North America and the leading name in the electronics industry. Best Buy has more than 4000 stores within U.S., Mexico, Canada, Turkey and China (Hoffman, 2010). Best Buy practices differentiation strategy by using customer centricity model that provides end-to-end service. Best Buy was first established in 1966. They changed their name from “Sound of Music” to the “Best Buy” in 1983. Globally, Best Buy has made great business by increased market share and acquisitions of companies. They acquired companies like Geek Squad, Magnolia Audio Video, Pacific Sales and most recently The Future shop.
Best Buy is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services. The company operates retail stores and call centers and conducts online retail operations under a variety of brand names such as Best Buy, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales, and The Phone House (Bestbuy.com, 4). The domestic segment consists of all operations within the United States, while the international segment includes all operations in Canada, Europe, Mexico, and China. The Best Buy 's success is contingent on the market 's demand for electronics. The company 's strategy is to provide good customer service combined with lower prices (news.cnet.com). Best Buy 's success is directly related to economic conditions, the cost of goods, and other things like fuel prices. The company 's strategy depends upon the ability to offer customers a broad selection of name-brand products; therefore, leading its success to depend upon satisfactory supplier relationships (Bestbuy.com, 8). Best Buy, as it is included in the retail segment, is a seasonal store. Their stronger quarter is the fourth quarter, which they can contribute to the holiday season for their success.
Companies are growing by bringing in new stores to new locations rather than come up with innovation in the terms of bringing the products to the consumer. As written in business insights, the industry is recession proof but personally we believe that the companies’ sales are
Best Buy Co., Inc. is currently the world’s largest retailer for consumer electronics. The company has 1,400 brick and mortar stores and is a popular online retailer as well. The stores serve as display room for various online retailers. Best Buy consumers can purchase electronic products such as mobile, corded and cordless phones, televisions, cameras, personal computers, laptops, appliances and more (David & F.R., 2015). Today’s society relies on convenience and technology, forcing companies to implement new ideas and projects in an effort to maintain their ability to compete with other companies. For continued success the company must look at the internal and external issues the company may face as well as their competitors and their best practices that are contributing to their success.
Best Buy had a history of being able to adapt to the changing markets and their ability to do so contributed to their success (i.e. the vastly expanded product line, evolution to superstores, expansion, acquisition, converting from commission to salaried sales force.). The perception that customers were focusing less on the technical aspect of products and redirecting their attention to service and support, led to Anderson’s custom-centricity initiative. This transition and the rollout of 144 new “centricity” Best Buy stores was being blamed for the company missing third quarter earnings in 2005, resulting in a 12% decline in stock value and a loss of nearly $2B in market capitalization. Did Anderson perform the proper strategic market planning analysis before selecting and implementing the centricity initiative?
Best Buy, a familiar retailer in the technology world, is struggling to stay on top. Online and mass stores have cornered the market in terms of convenience, customer service and price matching. The recent closing of over two hundred stores alongside falling sales has experts predicting that the giant won’t be in business long. Using a results-only work environment (ROWE), Best Buy has removed the customer from the equation and forced many employees out. A marketing disaster, Best Buy must change its marketing strategy from sales-based to a customer-based to stay afloat.
Wal-Mart is a world-wide active American retail trade company and currently the largest retail company in the world. Beginning in 1962, Wal-Mart has made the transition from a small firm in Arkansas to the largest employer with 3, 800 store units in the United States with record revenues today. But nevertheless, since Wal-Mart launched its online branch, it had to suffer from substantial setbacks from competitors such as Amazon.com or Ebay.
A competitive strategy is a plan of action that a company develops towards attaining a competitive advantage over its competitors in the industry. Companies examines and research their competitors strengthen and weaknesses and compare them to its own. A company strategy can incorporate efforts to please customers, ward off competitive threats, and meet a unique competitive advantage.
On the other hand, another control system the organization is their rewarding strategy; as they link their performance and abilities to meet goals and targets to pay raise and promotion.