Best Buy's Competition

In the Millennium year, Best Buy launched “Bestbuy.com”, and diversified products, which includes large appliances, Hi-Tech products, and digital contents were sold online.

Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based out of Eden Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million in total revenue last year. Best Buy carries a wide variety of products consisting of Major Appliances, video and audio equipment, computers, software, music, and wireless technology. When analyzing this corporation it is important to pay close attention to its current and future services and products, any problems with the corporation, the future direction Best Buy is headed, what can be done for the corporation, and what it can do for you as a consumer or employee.

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.

A continued weakness that Best Buy continues to face is their reliance on the brick and mortar store format. While Best Buy has started to offer business through its online website, most transactions rely on their physical stores. According the Star Tribune, “Best Buy, which has 1,360 stores in the United States, has been quietly closing a few dozen a year” “Target, Best Buy and even Amazon among retailers who see new power in stores, 2017”. Best Buy is working on reformatting how they utilize their physical stores in relation to their online store, but to achieve this it requires time and uses

cons of offering deals to their online store, look at some of the most popular ways you

One of the opportunities we have in today’s world is whether to buy online or go to a brick and mortar store to do our purchasing. The two offer great sales and promotions along with selections from which we can choose. As online shopping and brick and mortar may seem similar; however, both differ in pricing, convenience and selection.

Drivers: On the supply side, IT would allow Best Buy to have nearly unlimited shelf space through its store online. Rather than keeping inventories, Best Buy would have agreements with certain suppliers to deliver the niche products directly to

In the operating level, the biggest objective of the Best Buy operating department is to expand its growth domestically and internationally and reduced its operating expenditures in-store. By 2012, the total number of stores in US is 1103, opened 7 and closed 3. In the same year, the total number of stores in Europe, Canada, China, and Mexico are 2393, 256, and 204, 8 respectively, opened 145, 31, 41, and 2 respectively, closed 109, 2, and 3 respectively (United States Securities and Exchange Commission, 2012). However, Best Buy operating department is not able to achieve its second objective until it implements a good strategy to reduce these expenditures.

The computing and mobile phone product category is its largest. Best Buy is focused on providing ease for the customers to shop, either online or in stores. I like having both options and over the past six months, my largest purchases fell into the computing and mobile phone product category. In addition, Best Buy offers technological support in the subsidiary of the Geek Squad. For example, my notebook came with a year of Geek Squad support and internet security protection. Moreover, I can talk to Geek Squad agents online or via the phone. They also provide onsite service either in store or at your home. Something not offered by its leading competitors Wal-Mart or Amazon. “The innovating firms must decide whether to produce the complement itself or to rely on others to do so” (Dedrick, Kraemer, & Linden, 2010). This is a unique customer value driver that consumers like I

Many companies are doing a great job at being and remaining productive. As the companies productivity increase then so will the revenue. Increased productivity and revenue proves that the successful companies have taken steps to ensure their future and growth. This growth can be achieved with all companies that will follow the same formula. The formula can involve a number of different methods however the best methods that seem to be the most useful is by using cluster sampling, surveys containing open-ended questions and analyzing employees or the company as a whole. A company that could really use an evaluation to increase productivity is Best Buy. Best Buy is an electronics company that has been one of the leaders in electronic sales for years. However, over the years beginning in 1997 Best buy has had numerous makeovers and some downscaling. Some of the downscaling was the cause of less productivity or because they wanted to extend their electronics catalog.

In the future, online shopping will develop better than now, and this is an unstoppable trend. For Best Buy, the first thing is to increase online sales. Now a lot of companies provide online shopping services such as Amazon and EBay. People often compare the price between different web sites and choose the low prices to buy. Therefore price matching is very important. How to get faster price matching will be a key factor to get competitive advantage. Another important factor that can help Best Buy gain the competitive advantage is accurate and fast delivery time and better pre-sale and after-services. Pre-sale consultation and after-sale maintenance return service are also important for the retail store. Best Buy can put its strategic position

Amazon 1.74% 0.56% -0.27% Target 3.94% 4.56% -2.25% As shown in Table 4, Best Buy has the most consistent and positive profit margins in the past three years. This can help us conclude that the focused differentiation strategy has been creating opportunity for Best Buy to remain in the position to build on the success. This is a promising trend for Best Buy and it can be sustained with the strategy they have in place. The assessment of the financials has gave us a better understanding of how Best Buy compares to the competition,

They are struggling to keep up with online retailers who are able to offer more competitive pricing as a result of reduced overheads; they are also able to reach a wide range of customer (including

This is when business like John Lewis gives customer option to buy item from their physical store and

Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce