Best Buy Internal and External Analysis

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Internal Analysis: Core Competencies, Strengths and Weakness
The (RCC) / VC model is used to determine how Best Buy bundled its resources to create capabilities and how these capabilities become the company’s core competencies which will be their source of competitive advantage.

Financial Resources
- Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011.
- Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.
- Majority of Best Buy acquisitions of foreign electronics companies have been profitable.
- Domestic sales contribute 74% of the total gross revenues- $37.2 million compared to $13.1 billion from the international segment.
- Total revenue has been
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The online provides superior assistance to customers making purchases. This website also provides 24/7 human customer assistance, user forums, professional and customer reviews. All the services were possible through acquisitions. Strong Customer Service will be able to provide a reputable image in the heart of the consumer.

Financial, Physical, Organizational, Technology, Reputation resources
Best Buy used to have a negative reputation. It was nickname as “Amazon’s showroom” because consumer browses the products in Best Buy and purchase it through Amazon’s application. With the online platform (, 60% of the Best Buy customers will start their research and shopping at
With Best Buy acquiring Five Star Appliance in China, the name has been brought into China, opening up to more consumers. Even though it may not be profitable however now people in China are getting more aware of Best Buy Company. After performing poorly, Best Buy decided to convert it to Five Star Branded stores in China. All these show that Best Buy has the financial power to repackage and adapt to difficult terrains.

Capabilities – Management
Valuable – YES
It is important to have a good management to direct Best Buy to the correct direction.
Rare – YES
Not a lot of company has the same management style.
Costly to imitate – YES
It will take a huge sum to retain
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