Best Buy Study Case

3162 Words May 5th, 2011 13 Pages
dr.ibrahim hegazy- marketing 480 | Best Buy INC.-Dual Branding in ChinaCase 2 | Nada Ali Ezz El Din900071202 | | | 4/5/2011 |

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Index

I. Introduction---------------------------------------------------------------------------------------p.3

II. Opportunity Identification-------------------------------------------------------------------p.3

III. SWOT Analysis -----------------------------------------------------------------------------p.3-p.7

IV. Alternative Suggestions and Solutions-------------------------------------------------p.7-p.11

V. Conclusion ------------------------------------------------------------------------------------p.11

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B) Weaknesses: * Low brand awareness in Chinese CE market. The problem here is that Best Buy doesn’t have any brand awareness in China because it was the first multinational company to have entered the retail end of Chinese CE market. Compared to the two main competitors , Best Buy is in a bad situation concerning brand awareness because these two competitors have been the first Chinese companies to establish themselves in this industry and they own both about 20 % of market share in the Chinese CE market. * Higher prices. Best Buy sells its goods with a higher cost than the two other competitors, and since Chinese consumers are price sensitive and also prefer their local brands that they are more familiar with. Therefore, Best Buy has a risk of not making many profits from the amount of goods it will be able to sell. * Services tailored for the Chinese consumer. Best Buy has some services such as the “geek squad” and others, but Gome Group the competitor has developed a pre-sales service that Best Buy doesn’t possess. This service advices customers on which brands to choose. The Chinese customer likes to have a guide and an “advisor” and this isn’t an element Best Buy practices because it follows the “grab and go” model where the consumer goes on his own and chooses what he likes and if he needs assistance it must be by request. * Dependence on the domestic United

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