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
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Best Buy can then set to achieve employee commitment, which will then result in customer satisfaction.

Innovation Resources
- Best Buy stores offer the Best Buy Mobile store-within-a-store feature and access to Geek Squad services.
- Brokered a deal with Brazilian Cruise Company to bring tourists to Best Buy as a stop on their trip.
- Providing consultation services to business purchasers as well as showcasing products specifically designed for business applications.

Best Buy not only does business-to-consumer but also on business-to-business sales. This allow them to generate revenue from another market.

Reputational Resources
- Best Buy was seen as the team to beat by their competitors.
- Best Buy was named as “Amazon’s showroom”.
- Purchased almost 65% of its product from 20 suppliers with 5 of those (Apple, HP, Samsung, Sony and Toshiba) providing almost 40% of its merchandise.
- 60% of Best Buy customer begin their research and shopping on the Best Buy website.

- Best Buy tap on the reputation of Jiangsu Five Star Appliance Company because it is the largest retailers of consumer electronics and appliances in China.
- A reputation for providing superior sales assistance for a big box retailer.

Best Buy has both positive and negative reputation. However, they have converted the negative reputation to positive by creating a
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