Bestbuy's Strategy

1407 WordsApr 7, 20136 Pages
In the last few years, BestBuy has been experiencing fierce competition and has been fighting to gain dominance in the consumer electronic market. Apple, Amazon, Wal-Mart, and Target are the current competitors that are giving them the most problems. A lot of people are coming into BestBuy’s stores to try out the products and then leaving the store to buy online or at a slightly cheaper price. C.E.O, Brian Dunn, is left with many questions about keeping customers in his stores and how to develop and sustain a competitive advantage in today’s economy. According to the case, BestBuy is trying to create a competitive advantage in three areas: customer-centricity, employment policies, and exclusive branding. After studying the VRIO framework,…show more content…
Most of the products offered by these small labels are accessories that add value to the more expensive products which in turn increase the profitability of BestBuy. In particular, I think Geek Squad is valuable because a lot of older people do not know how to set up the more complex electronics and often run into problems. Easy-to-setup installation and troubleshooting is a very attractive feature to most consumers. Along those same lines, these small labels are rare because their products are only being sold in BestBuy stores. If you’re a huge fan of Rocketfish cables or really appreciate the helpfulness of Geek Squad then you have to come to BestBuy to get you want. These private labels are also costly to imitate I imagine because it could be costly to implement and staff a repair and installation service in all of your stores like BestBuy has done with Geek Squad. Also, these private labels have a few unique products that could be hard to replicate. I know that Init has created some nice, high quality equipment bags and furniture for home theaters. I believe that after weighing the benefits of all three of these areas that BestBuy has indeed created a competitive advantage. In one way or another they have valuable, rare, costly to imitate, or are organized to capture value with their products and services. BestBuy’s business level strategy is to focus on its people through customer centricity and employment policies. The managers in both areas

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