Best Buy Essays

768 Words Apr 9th, 2008 4 Pages
One example of environmental scanning Best Buy used is in 1999 when they realized the increase in popularity of digital electronics. They changed their store formats to highlight these digital products. There most recent environmental scanning change was to get in touch with their feminine side. They have recently put a more personal touch in to their stores and customer service. Environmental Scanning has played a huge role in Best Buy’s evolution. Without paying attention to what is going on around them Best Buy would have probably already failed. I think that every “major evolution” this company has made was based on the facts of the environment. Well as we all know gas prices are continually increasing. So, hopefully the money they …show more content…
The fifth condition, CAPACITY MUST BE ADDED IN LARGE INCREMENTS. Best Buy did do this and ended up losing a lot of money. So, they have now decided to down size the new stores being built by thirty to forty times. Number six, DIVERSE COMPETITORS. Their competitors are diverse in all areas of products, providing customers a “one stop shop.” But Best Buy is extremely diverse in their main product category, technology based appliances. Seventh, HIGH STRATEGIC SAKES. Because Wal-Mart and Costco are such large businesses and have so many stores they can sacrifice short term blows because in the long run they will come out on top. For Best Buy it is much harder because they have less stores that can cover the loss of another. And the eighth condition is, HIGH EXIT BARRIERS. I think one of Best Buy’s highest exit barriers is their Geek Squad. This geek squad not only provides insight to problems as well as fixing those problems, they also provide a sense of trust among customers.

3. Threat of substitute products or services, because Best Buy has the best of the best but some consumers are simply attracted to low prices. Definitely bargaining powers of buyers. Everyone knows Wal-Mart has a huge control over their suppliers therefore they may able to get the same products at a cheaper price and then sell them at a cheaper price.

4. Technology is both the opportunity and threat in Best Buy’s case. Technology is steadily

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