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Best buy
1.
2. BUSINESS OBJECTIVE AND MISSION
Obtain, maintain and grow the market share
International growth
Connected digital solutions
Efficient enterprise
3. Best buy in consumer electronics industry
Best buy’s top priority is to increase the level of
connectivity with its customers.
Growth for best buy exceeded the industry average.
Best buy is one of the top speciality retailers in the
country.
Best buy faces intense challenges as Walmart
Bolsters efforts to take market share in electronics
as consumers seek out extreme value
4. THE STORY
1985: Best buy debuts on NYSE
1992: Best buy hits $1 billion annual revenue.
2000: Best buy online store launched
2002: Best buy acquires geek squad
2004: Geek squad opens in every best buy store
2007: Best buy acquires internet service provider,
speakeasy
2008: Best buy purchases online music service,
Napster
2011: Best buy introduces national E-fairness
legislation
2015: Best Buy announced the shutdown of the Future
Shop chain in Canada
5. Major competitors are Walmart, apple, amazon,
radioshack, etc.
Tough economic times have retailers scrambling
to pick their share of sales.
Many suppliers like sony, apple, samsung, etc.
are increasing their own branded showrooms.
Level of threat: Moderate-high
6. Price deflation will stimulate demand but frugal
consumer spending habits and credit restrictions.
During FY2009, electronics had revenues of
$16,263 million, a decrease of 0.1% as
compared to FY2008.
7. Knowledgeable staff
Consumers have a positive view of best buy as
compared to walmart
Strong market presence
Loyalty programs- “Reward zone”
Acquisitions like future shop, geek squad, napster
Private brand recalls
Constrained credit availability
Drop in comparable stores
8. Growing online sales
Private brand potential
Expanding presence in China, Mexico,
Europe, Turkey, etc.
Intense competition
The economic slowdown
Quality issues with chinese exporters
Political disputes between countries like US,
China, etc.
9. Pricing strategy
Pricing techniques which includes core merchandise
In the price war between best buy and walmart best buy is
second behind walmart
Multiple pricing
Service components such as geek squad, free haul-away
Warranties
10. Multiple channels of distribution
Retail stores sell products as well as provide geek
squad support.
Online website offer products and services offered in
stores with occasional online discounts and promotions.
Products can be shipped and also arranged for in-
store pickups.
14. What are the keys to Best Buy’s success? What are the
risks going forward
One of the keys to Best Buy's success is good
management. Best Buy has had a good management
since the day of its inception and it is what has brought
them this far. Another key is a friendly environment
they provide to their employees. Risks they encounter
include competition from their counterparts and failed
research.
15. How else can Best Buy compete against new competitors
like Walmart and online companies?
Walmart and online electronic retailers are tough competition to
Best Buy because of their low prices but Best Buy competes with
quality service and customer targeting and positioning. Best Buy
provides delivery and installation by highly trained employees and
warranties that guarantee that their products with function
according to expectations. Advanced research and development can
lead the company to design its own digital cameras, televisions,
computers, sound systems, etc. to compete with growing chain
retailers and a profitable electronic market. By continuing its
strong force of customer service driven sales tactics and potentially
investing in future technology, Best Buy can compete in a growing
market.