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Best Buy Co Inc. Essay

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(Best Buy Co Inc.)
Industry Analysis
➢ Group map ➢ Barriers to Entry

Economies of Scale High
Differentiation High
Total Capital requirements High
Switching Cost (at Individual level) Low
Switching Cost (at Business level) High
Advertising High

➢ Barriers to Exit

Specialized in assets making High
Level of Fixed Costs High
Commitment Level Low
Management Level Low
Contractual level of Commitment High

➢ Rivalry

Concentration Level High Low Rivalry
Rate of Growth Steady Rivalry level is Low
Company’s Fixed Cost Ratio High Rivalry level is high
Switching Cost Low Level of Rivalry is High
Differentiation High Low Level Rivalry
Exit from Barriers High Rivalry level is High

➢ Available Substitute

Electronics Goods
E-Commerce
Retailers Big Box Stores
Merchandize
Retailors Digital contents
Distributers
Amazon.Com eBay Wal-Mart
Costco
Target iTunes
Netflix

➢ Complementors
Both internal and external Complementors are present in the industry.
Internal External

Complementors that are act as itself
Computers and computer Software
Video Games
Video games System/TV
Acquisition of Greek Squad Payments
Processing
Industry
Industry
Shipping Industry
Technology

➢ Globalization

In this industry Economies of scale reaches at global level while Best Buy fulfill customers demand on National level as per culture and choice of countrymen. As this industry becomes very grooming industry that’s why level of competition not only increased but also it reaches at

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