Business Model Of Best Buy Co. Inc.

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 a company that has 40 years of history with a very accomplished sense of success. In 1966 Best Buy was a small electronics store in that originated in St. Paul Minnesota by Richard Schulze and an acquainted business partner. Considering that technology changes so rapidly, Best Buy has had to transform from just being the little electronics store down the way into a competitive, customer-driven, talent-powered company that emphasizes on pleasing the customers as it pertains to the life of technology. In 1993 Best Buy was recognized as the nation’s second largest electronics retailer and was recognized by

Two years later, 2006, Best Buy started to work with the CarPhone Warehouse company, a British company venture, and this led to the opening of Best Buy Europe in 2007. Best Buy also purchased Napster and Cinema now, with that they hoped to keep them up with the latest advancement of digital downloads. This new purchase did not work all, that was then sold because it did not provide the revenue the company expected. That same year 2007, Best Buy also opened new stores in Mexico and Puerto Rico, and in 2008 Best Buy opened their 1000th store in Minnesota inside the Mall of America.

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

* Intelligent merchandising applications that can enable Best Buy For Business to cross-sell complementary products based on their specific merchandising criteria.

Best Buy operates as one of the largest electronic consumer outlets in the United States. While Best Buy is internationally known for selling a large variety of electronics, it also sells home office products, appliances, and entertainment products. Best Buy chains are located predominantly in the United States, Canada, Europe, and China. Since Best Buy’s success is strongly dependable on the consumer, its main goal is to do whatever it can, within reason, in order to make its customers fully satisfied.

Best Buy leverages themselves fairly different from their main competitors. Most of their competition focus on cost savings to pass on benefits to their consumers, but Best Buy does things a little differently. Rather than focusing on price, and only price, the company adds value through their unique mixture of physical and digital stores; something you won’t see at amazon.com or Walmart. One of the main benefits to this outlined by the case is that 40% of Best Buys online purchases are picked up in stores. This provides ample opportunity for the blue shirts to attach more accessories and service plans (both of which are high in margin). Also unlike the retail giants amazon.com, Walmart, and Target, Best Buy is a consumer electronics retailer.

Best Buy prides itself with strong brand loyalty and reputation. The company has been able to cater for customer needs in a better way thus rising against giants, such as Amazon. The company has been synonymous with quality electronics thereby ensuring that it is a choice and destination for shoppers looking to make both small and big purchases. Its ability to offer quality products at competitive prices and services has created loyalty from consumers. Broad market exposure is a strength that allows the company to reach more consumers thus expanding its economies of scale.

Best Buy Co., Inc. (NASDAQ: BBY) is a leading electronics retail chain providing technology products, services and solutions. Their store fronts offer expert service to the consumers, small business owners, and educators through engagement with Geek Squad Agents or via BestBuy.com or the Best Buy app. The company has operations in the U.S., Canada, China, Europe, and Mexico. The company proudly boasts that more than 70 percent of the population in the U.S., Mexico, and Canada live within 15 minutes of a Best Buy store. The company also operates retail stores and websites under 11 brand names: Best Buy, Five Star Appliances, Future Shop, Geek Squad, Magnolia Audio Video, The Carphone Warehouse, Best Buy Mobile, Audiovisions, Napster, Pacific Sales and Speakeasy. Founded in 1966, Best Buy currently employs 167,000 worldwide. BB’s competitors include Amazon, Walmart, Radio Shack (at the time of the case) and the world of online electronics retailers.

Valuable experience was gained through the successful acquisition of companies and employees. Acquisition gave Best Buy the ability to determine where expansion should take place, and was the key in distinguishing itself from its competition in the consumer electronic market. The knowledge base of high calibre employees was recognized as another core value in the company’s strategy and success. Best Buy’s global presence provided awareness of any global trends, and access into developing markets to foresee customer needs.

Internationally, Best Buy has different product lines located in nine European countries. The Carphone Warehouse and The Phone House stores employ sales associates that provide independent advice on the best service and hardware suited to each customer. Their goal is to have the customer leave the store with a fully active phone and a service contract.

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

Best Buy is a multinational retailer that sells both products and services through three primary channels: about 1,500 retail stores, online, and call centers. It sells consumer electronics and a variety of related merchandise, including software, video games, music, DVDs, Blu-ray discs, mobile phones, digital cameras, car stereos and video cameras, in addition to home appliances (washing machines, dryers, and refrigerators), in a non-commissioned sales environment (Hoovers, 2013). It has also branded store banners that include Best Buy, Best Buy Express, Best Buy Mobile, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, and Pacific Sales.

With Best Buy acquiring Five Star Appliance in China, the name has been brought into China, opening up to more consumers. Even though it may not be profitable however now people in China are getting more aware of Best Buy Company. After performing poorly, Best Buy decided to convert it to Five Star Branded stores in China. All these show that Best Buy has the financial power to repackage and adapt to difficult terrains.