Why Is Best Buy Considered The Weak Points For Best Buy?

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

Amazon make sure that customer service is the best, Customers experience low prices through Amazon, the fastest delivery, having a form of reliable contact. Amazon customer service problems have allowed retailers to sell itme on the website, to make broaden the worlds selections of products. Amazon has a rival EBAY, which also allows merchant to sell and buy through its site, but with eBay there has been complaints with poor service and fraud (Cohen, 2009).

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.

Furthermore, Best Buy’s rapid expansion(s) did brought with it, usual high debt levels and uncommon low profit margins that eventually forcing Best Buy (the firm) into slowing down the firm’s expansion and reconsidering few-to-some of its low-cost strategy or strategies.

- 60% of Best Buy customer begin their research and shopping on the Best Buy website.

Of the three strategies that I researched the one that needs improvement is the Marketing and Advertising. Because of the vast array of products and vendors that Best Buy is associated with it becomes a great challenge to advertise and market effectively all of the choices that

If the centricity concept is being blamed for not meeting earnings and the decline in Best Buy’s stock price and market capitalization, the question becomes was there a need for this change to the company’s strategy, was the strategy poorly implemented, was there a delayed market response to the change, or was the launch an overly aggressive action of a newly appointed CEO? The Best Buy leadership team first needed to evaluate whether there truly was a need for a (drastic) change and if so, was centricity the appropriate response to the market.

The first changes I would make is to compete with the prices that Walmart has in their electronics department on the items that we sell alike in electronics. Secondly, I would make sure I had more varieties and deals on electronics than Walmart. Best Buy would be one of the partnership I would get to work on my electronics such as the Geek Squad so that all my repairs will be taken to Best Buy instead of the customer having to take the electronic. Free advertisement would be a factor due to the competitor being across the street with more than electronics for sales in the company. The partnership with Walmart would be that the employees would send the customers to my business when they don’t have or sell the product that the customer needs

The compensation changes could be a reason for the decline of Best Buy, but I think that the other external factors are more important. First it is hard for Best Buy to compete with Walmart or Amazon because they offer more options for cheaper prices. Walmart always has lower prices than Best Buy and they have other items to shop for in their store. Walmart is a place where you can get just about anything you want and they most likely have it for a cheaper price than others. They also don’t have to pay their employees as much because they don’t require employees to sell you their products; the products sell themselves, so Walmart doesn’t need to compensate their employees the same way Best Buy does. Amazon also beats Best Buy because they don’t

The success of Wal-Mart is due in large part to its ability to consistently produce high quality products at a low cost. This is very critical to the future success of Wal-Mart because it provides consistency to customers who are price sensitive. By committing themselves to "Everyday low prices," Wal-Mart assures customers that the products sold within their stores are competitive in reference to its retail competition. This low price strategy also provides Wal-Mart with a

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.

In my opinion, the best online retailer is Amazon. They easily have the best customer service and product fulfillment when compared to other online retailers. The inventory in the USA is over 200 million products, making such a feat impossible for a physical retail store to compete (Export, 2013). The following essay will discuss Amazon’s pricing and retail strategy. Both are key factors of their marketing that allow Amazon to sustain their market dominance and retain their loyal customers.

It makes sense for Best Buy to worry more about Wal-Mart, which is getting more involved in electronics retailing, and less about Circuit City. The competitors are a diverse lot today, and for them to continue to grow they're going to have to get much better at everything they do and define themselves in clear ways. Best Buy's plan is to revamp its stores according to the types of customers they serve. A strategy previously mentioned, customer centricity, focuses on targeting five prototypical customers, all of whom have been given names: "Jill," a busy suburban mom; "Buzz," a focused, active younger male; "Ray," a family man who likes his technology practical; "BB4B" (short for Best Buy for Business), a small professional employer; and "Barry," an affluent professional male who's likely to drop tens of thousands of dollars on a home theater system. Their most current focus is on a "Jill" based store, the soccer mom who has money to spend but typically hasn't a clue of where or how to find products in the store. According to the data Best Buy has collected, Jill shops a few times a year, usually twice at an electronics store, but she usually spends a significant amount.

As the U.S. economy has slowed, bringing consumer spending down with it, nearly every retailer has felt some pain. Best Buy has managed this crisis better than its most similar competitors, considering that the slowdown all but killed Circuit City and CompUSA. Nevertheless, Best Buy’s stock fell 16% from December 2007 to February 2008, and has fallen another 12% since then, while low-cost retail leaders such as Wal-Mart have benefited as consumers seek out the lowest possible price for everyday necessities. Best Buy’s

According to this case, and concerning about the strategy that Best Buy has created, retailers can similarly create a retailer-led product strategy to leverage their customer knowledge for product differentiation and to understand what the needs of the customers are; they must discover what satisfies the customer and what not. In addition, the retailer can seek for news partnerships, new stores, new countries and new categories and services in order to increase their net sales and their share market. It’s very important invest in marketing study aiming to discover what the other companies are doing. Besides, with the time, the smaller retailer can increase significantly even more than the