Best Buy Study Case

Economic conditions affect every business in the United States in some way, shape, or form. Best Buy is directly affected by numerous economic conditions. Some factors that go into the Economic Conditions sector of the external environment of Best Buy include: the employment rate, inflation rate, recession, and growth of the economy. In order for Best Buy to remain successful, they must be efficient at monitoring the economy by knowing how to react and respond to it as opposed to trying to change it. Economic factors can affect how you market products, how much money you can spend on materials and business growth, and which markets will be your future targets. If Best Buy can understand and strategize their business according to the surrounding

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,

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.

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

Best Buy’s mission statement is “our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers – and we rely on our employees to solve those puzzles” (bestbuy.com). The company has an objective to to provide the best technological products and service solutions to customers throughout its markets. Best also has as an objective to provide expert services to customers at prices that are described as unbeatable. The objectives also include the company having sustainable growth and earnings. The company marketing the products that is based on an operating model that is considered as customer centricity achieves the sustained growth and earnings. Best Buy uses a strategy that focuses on helping customers to be able to realize what they needed to stay connected with technology and the products that are desired. The company also spends time monitoring the needs of its customers, which

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.

These changes were necessary with the growing instability in Europe and with the ever changing economy in China so in the meantime “Best Buy has decided to explore more profitable growth options for the Best Buy brand in these markets, including the option to reopen two of the closed stores in China at a later date”.()

The consumer electronics giant, Best Buy, was first established in 1966 with a single location and a staff of three in St. Paul, Minnesota, selling audio equipment targeted at 18-25 year old males. Initially Sound of Music/Best Buy grew through acquisition, expanding to nine locations in the Twin Cities area by 1978. The name, Best Buy, and expanded product line, ranging from audio and video equipment to large appliances, were a result of a “best buy” sale of damaged inventory at bargain prices in 1981. In the mid-1980s, Best Buy launched superstores similar to those of their main competitor, Circuit City and expanded by 15 stores between 1985-86. In 1989, Best Buy launched itself as a

Best Buy Inc. has built a reputation as a ground-breaking retail giant. It is known as one of the first “big box” stores in

The Dollar General is an American wholesale company that was first initiated in Scottsville, Tennessee by Turner and Cal Turner. Its headquarters are located in Goodlettsville, Tennessee. The mission statement of the Dollar General is "Serving Others." This mission statement helps to bring out the innate requests and intentions of the company in the United States of America and other countries in the world. The company has a vision that describes how it manages to cater for four different types of people. These four groups of people include the customers, the community, employees, and shareholders. Within these categories of people, Dollar General aspires to serve others through deliver of price quality and terrific prices for customers, opportunity, and respect for employees, a superior return for shareholders and a better life for the communities.

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.

Best Buy was founded under the philosophy of providing customers with a wide selection of

In 1966, Richard Shulze opened a small business in St. Paul, Minnesota called Sound of Music. In the next 17 years Shulze's small store rapidly grew into a multi-million dollar outfit. In 1983, Sound of Music changed its name to Best Buy Co., Inc and the first superstore was opened in Burnsville, Minnesota. With the new name the store also began carrying more name brands, appliances, VCRs and offering central service and warehouse distribution. Throughout the nineties Best Buy became pioneers in offering the newest technology such as DVDs and high definition TVs. In 1999, Best Buy and Microsoft combined to cross promote each other and also offered a two for one stock split. Now in 2005, almost 40 years after the first store