...1.0 Executive Summary 1 1.1 Section I. 2 1.2 A) Company History 2 1.3 Strategies and Tactics used by Best Buy 3 1.4 B) Mission Statement (implied).……….……………………...……………………………………...4 1.5 Analysis of the Mission 4 1.6 C) Objectives 5 1.7 Analysis of the Objectives 5 2.0 Section II …………………...……………………..…………………………………….……………6 2.1 Financial Analysis...………………………………………………………………….…..…………...6 2.2 A) Ratio Analysis………..…………………………………………………………………………...6 2.3 B) Evaluation of the Income and Balance Sheet…………………………………..........................…6 3.0 Section III …………………….………………………………………………………………………7 3.1 A) Strenghts.………………………………………………………………………………….……….7 3.2 B) Weaknesses…..……………………………………………………………………….……………7 4.0 Section IV…………………………………………………………………………………………......8 4.1 C) Opportunities………………………………………………………………………………………8 4.2 D) Threats 8 5.0 Section V 9 5.1 A)Strategic concern 9 6.0 SectionVI…………………………………………………………………………………………….10 6.1 Salient Strategic Concern…………………………………………………………………………….10 7.0 SectionVII……………………………………………………………………………………………11 7.1 Strategic Alternatives…………………..……………………………………………………….……11 8.0 Section VIII……………….………………………………………………………….………………12 8.1 Recommendation 12 9.0 Section IX 13 9.1 A)Implementation Plan 13 9.2 B)Time lines 13 9.3 C)Budget 13 9.4 Evaluation and Control 14 10.0 Section X……………………………………………………………………………………………15 10.1 Bibliography…………………...…………………………………………………………………...15 10.2 Appendices…………………….……………………………………………………………………16 Table: Balance...
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...Best Buy is no longer the all-powerful super store that it has been known as the past couple of decades. With today’s rapid increase in e-commerce, it makes it hard for “big-box” stores such as Best Buy to cope with the changing customer preferences. As a result, Best Buy’s 2011 financial performance fell subpar, with a 2.4% revenue decrease, and an overall loss of $1.23 billion. In response to this financial loss, the store is going to close 50 stores and fire 400 corporate staff members (Savitz). This report will provide a detailed internal and external analysis of Best Buy’s operations that have resulted in the company’s current market position. Best Buy’s previous strategy of relying on “big box” stores is being replaced by a new strategy of a higher number of smaller stores. Best Buy plans to open 100 new small stores to replace the 50 big stores that they are closing. Best Buy realized that the big stores were starting to be used for “showrooming”. This allowed consumers to come into the stores and experience the products, only to go online and purchase the product cheaper. In 2011, over 15% of volume sales were taken by internet retailing (Euromonitor). On top of the slipping sales, the expenses of the “big box” stores are not something to be forgotten. Best Buy believes that by 2015 $800 million will be saved by closing the larger stores. Also, the smaller stores will allow for more customer interaction, which Best Buy learned is one of the main reasons the “big box”...
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...Critical Analysis: Best Buy When Best Buy first opened it was an event that an electronics store could hold such a variety of products, have knowledgeable employees, and offer competitive prices at the same time. Although in 2012 it was reported that revenues for Best Buy increased, the company still fell victim to the problems of having a decrease in net income and operating cash flow. “The company reported revenues of (U.S. Dollars) USD 50,705.00 million during the fiscal year ended March 2012, an increase of 1.93% over 2011. The operating profit of the company was USD 1,085.00 million during the fiscal year 2012, a decrease of 54.30% from 2011. The net loss of the company was USD 1,231.00 million during the fiscal year 2012, as against a net profit of USD 1,277.00 million during 2011 (Strategic Analysis 1).” It is obvious by these numbers that Best Buy, a company that has been historically successful, has been running into some recent troubles. In this report I will identify all of the potential reasons for Best Buy’s recent poor performance, as well as offer my opinion for the primary reasons for Best Buy’s recent sub-par performance. As a company, Best Buy can be held at fault for some of its performance struggles purely from an internal point of view. Best Buy is categorized as the “leading global electronics and appliance specialist retailer (Passport 4).” They have obtained such success from their warehouse type stores, with specific services offered inside (Geek...
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...Unit 6 Assignment 2 Capella University 3/28/2013 Nasir Khan Best Buy Company Analysis | Best Buy Co., Inc. is a multinational retailer, which provides consumer electronics, home office products, entertainment products, appliances and related services. The company operates through two business segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., operating under various brand names, including but not limited to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, and Pacific Sales. The International segment is comprised of all operations outside the U.S. and its territories, which includes Canada, Europe, China, Mexico and Turkey. The company also markets its products under the brand names: Best Buy, Audio visions, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and The Phone House. The company changed its name from Sound of Music, Inc. to Best Buy Co., Inc. in 1983. Best Buy was founded by Richard M. Schulze in 1966 and is headquartered in Richfield, MN (BestBuy.com). Through its different brands, Best Buy has offerings in 6 different revenue categories: consumer electronics, home office, entertainment software, appliances, services, and other. Best Buy is considered a Oligopoly. A market where a very few large sellers dominate an industry and they each know how the other will react to changes...
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...EXTERNAL ANALYSIS FOR BEST BUY CO. INC. Introduction Best Buy Co., Inc. is a public limited company whose stocks are listed in the New York stock exchange. It is a specialty retailer of consumer electronics in United States which accounts for about twenty percent of domestic market retail business in technology based items. It has store in 24 different locations in United States (USSEC, 2011). Apart from its operations in USA, it also carries out its operations in Mexico, Turkey and United Kingdom etc. (Boyle, 2006). As of 2010, company along with its various subsidiaries operates more than one thousand and fifty stores only in domestic markets (USSEC, 2011). It is a private listed company. The stocks of the company are listed in the New York Stock Exchange under the symbol BBY. The company was ranked as a company of the year by Forbes (Tatge, 2006). It was also ranked as a “specialty retailer of the decade” (DSN, 2001). It is currently ranked at number 45 in the Fortune 1000 companies list (One Source, 2011). It is among the primary retailers of electronic goods in the United States. During the first quarter of the fiscal year 2011, it has earned revenues over six hundred million (Best Buy, 2011). SWOT Analysis SWOT Matrix The SWOT analysis of Best Buy Co. Inc. is as follows: Strengths * Market position * Networking * Profitable growth in stores business * Alliance | Weaknesses * Limited suppliers * Lawsuits * Limited geographic concentration | ...
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...Best Buy On the Brink Background Best Buy and Circuit City were the two major brick and mortar stores where consumers were able to purchase electronics. With the rising technology and E-commerce, Circuit City was not able to adapt to the changing environment and now Best Buy is on the same path as its former competitor. Best Buy had to close down fifty stores and fire over 400 employees due to its poor financial performance. Best Buy CEO Brian Dunn explained that there was no innovation by the company to adapt to the changing market on how consumers were purchasing electronics. Consumers are now price comparing with Best Buy’s products with online retailers. Online competitors of Best Buy are utilizing the new emerging technologies to help make purchasing of products convenient to the consumers. Problem Statement Best Buy is on a slow downward slope towards bankruptcy, if the company does not have any new innovation in the way it sells its products to consumers. Best Buy needs to understand how consumers are purchasing electronics and restructure how its employees are interacting with customers. Amazon is taking advantage of being an online retailer which means that Best Buy has to take advantage of their physical locations. Alternative Solutions One of the strategies Best Buy can implement is to offer a price match guarantee to the customers if they can find a lower price than Best Buy’s products then Best Buy will match the price. This strategy will attract more customers...
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...studied the product to the extent that we felt satisified in what we knew. We also found that we tended to look for the best price after we had done the necessary research. We also found that if it was a bigger decision like a computer or higher ticket product we would study out the product more, but if it were a lower ticket iteam we worked more on inpulse. We belive that this holds true for the whole of the consumer world. Most of us before purchasing wanted to either use the product or try it to ensure that we liked what we were about to buy. Most of us found that Best Buy satisfied this end very well. Best Buy constatly has products out of the package so that you can play around with the product before you buy it. This helps their marketing plan, because as they sell you they can show you what the product does and why it is helpful for your needs. We all found this very helpful and even helped us to become more educated in our purchase as well as begin some loyality to Best Buy. As stated in the text book many consumers buy based on past experience, price and service. The consumers first create a want of the product and this is what Best Buy specilizes in, creating and satisfying the want. When looking at the Characterstics of the Consumer Purchase Decision process in the book, Best Buy has a high to a routine problem solving pattern. Best Buy has many brands that they represent, also due to their Geek Squad they tend to focus on making sure the customer is satisfied...
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...Best Buy Co., Inc. Sustainable Customer Centricity Model Case Study Analysis Amber Keita ADMIN404 November 16, 2013 Table of Contents Executive Summary 3 Introduction and Company Overview 4 Mandate 4 Core Purpose 4 Vision & Major Goals 5 Core Values & Guiding Principles 5 Stakeholder Analysis 6 External Analysis 7 Opportunities 7 Economies of Scale 7 Complementors 7 Global Expansion 8 Threats 8 The Internet 8 Big Competition 9 Government Regulation 9 Internal Analysis 10 Strengths 10 No Commission Sales 10 Customer Centricity Model 10 Broad Market Coverage 11 Multiple Product Lines 11 Weaknesses 12 High Debt – Low Cash 12 Pricing Pressures 12 Legal Issues 13 Short Product Life Cycles 13 References 14 Exhibits 15 Executive Summary Best Buy Co., Inc. is a leading retailer of consumer electronics in the U.S. and Canada with nearly 4,000 stores worldwide. Among the extensive range of products marketed, are mobile phones, televisions, gaming systems, appliances and computers, along with all of their components and accessories. The company pursues a differentiation strategy based on excellent customer service, no commission, highly informed sales staff, and a plethora of end-to-end services. Best Buy was started in 1966, and has acquired seven companies in the path of its growth, all of which either provide a complementary service and/or additional products for its customers. The external analysis identifies...
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...Best Buy SWOT Analysis The following SWOT analysis is for Best Buy. Best Buy is an electronics and appliance retailing company that specializes in consumer electronics, home-office products, entertainment software, and household appliances. It is one of the largest specialty retailers in the United States, serving a diverse customer base. Best Buy’s current competitors include specialty home-office retailers (Staples, Office Depot); retail discounters (Wal-Mart); wholesale clubs (Costco, Sam’s Club); and online competitors (Amazon, Circuit City). Strengths * Revenue of $16.26 Billion and profit of $651 million in 2011 * Operate more than 1,150 stores in the U.S. and abroad * Retail class leader based on customer satisfaction surveys * Leading U.S. retailer in computers, televisions, tablets, and cameras * Implementation of green initiatives to reduce electronic waste Weaknesses * Initially established image as a lower quality retailer * Impact of class action lawsuit settlement in 2011 * Previously neglected niche market for higher end products Opportunities * Purchase of Carphone Warehouse Group interest (U.S. / Canada) * Growth in sales of mobile phones and tablets * Improving inventory management through long-term relationship with suppliers * Further expansion of chain by opening “mobile” stores * Increasing availability of higher end merchandise Threats * Online competitors * Pressure from competitors to reduce prices * Rising labor wages * Current economic...
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...Summary: Best Buy Co. Inc. (NYSE: BBY) was established in 1966 and since it inception has become one of the largest specialty retailers in the United States. Best Buy is a multinational electronics and appliance retailing company, specializing in consumer electronics, household appliances, software, and home-office products. Best Buy employs nearly 170,000 people with over 1,400 locations. Strengths • Physical Stores • No. 1 electronics retailer • Knowledgeable personnel • Smart acquisitions Weaknesses • Physical stores • Reorganizations diluting customer service experience Opportunities • Growing online demand • Private Branding • Mobile broadband (phones, tablets) Threats • Intense online competition • Local discount retailers • Constrained credit availability Strengths: Physical Stores – One of Best Buy’s biggest strengths is also one of its biggest weaknesses – it’s physical stores. “Brick and mortar is where every dimension of the brand comes alive for us to see, feel, smell, touch, taste, and hear. The store does what technology cannot — allows us the full usage of our senses.” (Excerpt from the article ‘Let’s Not Forget the Store: Why Brick and Mortar Still Matter in a Multichannel World’, 2012). No. 1 Electronics Retailer – Best Buy Co, Inc. is the largest consumer electronics retailers in the US holding 20% market share in 2011 and is ranked no. 5 on Interbrands Best Retail Brands 2012. (Interbrand.com, 2012) Knowledgeable Personnel...
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...ADMIN 404 STRATEGIC MANAGEMENT Assignment one Best Buy Co. Inc : Sustainable Customer Centricity Model? Executive Summary Best Buy is a multinational retailer of consumer electronics. It operates as a retail store and online operations under several brand names in multiple countries, USA, Canada, Mexico, China and Europe. In Canada it operates under Future shop and Best buy names, offering in five revenue categories: Consumer electronics, Computing and Mobile phones, Entertainment, Services and other. Best buy’s mission is to become the leading multi-channel retailer by serving their customers and making a meaningful difference in their lives. Introduction and company overview Incorporated in Minnesota USA in 1966 as Sound of Music, Inc., Best Buy today is a multi-national, multi-channel retailer of technology products, including tablets, computers, televisions, mobile phones, large and small appliances, digital imaging and related accessories. It employs approximately 140,000 full-time, part-time and seasonal employees worldwide, it offers to its employees company-paid, full benefits that vary from location to location. Best buy’s success relies on the design and execution of appropriate business strategies. Best buy’s current strategy includes transformational change to many areas of business including online and in-store customer experience, employee-engagement, partnership with vendors and cost control, these strategies were adopted since 2012 as a result...
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...ACCOUNTING BEST BUY FINAL PROJECT General Student’s Discussion and Analysis History: Best Buy Inc is a leading provider of consumer electronics. The company is a top rated Fortune 500 company and is considered to the largest specialty retailer within its sector throughout the United States. It accounts for about 21 percent of the market. Best Buy Inc also is present in the Canadian, Chinese and Mexican market places. The company was founded in 1966 and is a public company, listed on the New York Stock Exchange as BBY. The company is headquartered in Richfield, Minnesota and the founder, Richard Schulze, is still on board and is chairman for the company. This retail business is specialized in consumer electronics. In 2008, Best Buy Inc has revenue of more than 40 billion dollars with 12.7 billion in assets. The company also employs about 150,000 people (2008 numbers.) Best Buy Inc also has a number of subsidiaries. This includes its computer repair service The Geek Squad, Magnolia Audio Video and Pacific Sales. The company operates both Best Buy retail stores and Future Shop label products and stores in Canada. Best Buy Inc is an aggressive company and set out to become one of the country's best providers of consumer electronics from the beginning. The most recent announcements for plans of the company included a statement in 2007 of pushing for a 40 percent increase in its operations. The company plans to operate more than 1800 retail stores around the world. Of these...
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...Critical Analysis: Best Buy: Grasping at Straws By tuc70402 | November 2012 Zoom In Zoom Out Page 1 of 2 Critical Analysis: Best Buy: Grasping At Straws Best Buy Co., Inc. is an American public company that is a specialty retailer of consumer electronics in the United States, accounting for 19 percent of the market (1). Over the last fifteen years, Best Buy, like many retailers, is “competing with a perfect storm of disruptive technologies (2)”. It is hard to compete with those companies embraced with innovations, such as Apple and Amazon. Best Buy has lost $1.23 billion and 2.4% decreasing of revenue last year. In order to create a delighting customer atmosphere, Best Buy should focus on: engaging in innovations of e-commerce, training employees, and focusing on the target market. Engaging in innovations of e-commerce is the best way to differentiate with the competitors. The remaining advantages of brick-and-mortar have been systematically eroded. On the other hand, e-commerce has been increasingly popular, “through technical and business innovations that include embedded video on their sites, highly credible customer reviews and peer advice, free or subsidized overnight shipping, easy returns and extended warranties, and phone or on-page video chat for customer support”(2). If Best Buy can try to create a cheaper alternative, offering customers a faster, more convenient, and less-expensive online shopping atmosphere, perhaps Best Buy can have a dramatically...
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...Umeed Sherpa Critical Analysis Paper 3 Dr. Christopher Monos BA 3103 Section 008 4th April, 2014 Best Buy Hits Rock Bottom Best buy the specialty retailer of consumer electronics in the United States is no longer the all-powerful super store that it used to be. Over the last fifteen years Best Buy, like many retailers, is “competing with a perfect storm of disruptive technologies (Savitz 2)”; making it hard to compete with companies such as such as Apple and Amazon that are embraced with innovations. As a result, Best Buys 2012 financial performance fell subpar, with a revenue decrease of 2.4% in the brick and mortar sector and operating profit plummeting by 54.30% in 2012. The net loss of the company was $1,231.00 million for 2012, against a net profit of $1,277.00 million during 2011 (Global Data 1). Lastly, Best Buy appears to be having cash flow problems in terms of declining liquidity of $1125 million (41.28% drop) for the year 2011. It is obvious by these numbers that Best Buy, a company that has been historically successful, has been running into some recent troubles. In this report I will conduct a situational analysis of potential causes of Best Buy’s problems and identify the major causes for declining revenue, net loss and declining cash flow position. Revenues Declining Best buy’s main source of revenues is contributed from the US market (76%) out of which the traditional brick and mortar accounts for 94% of the revenues and rest is from e-commerce segment...
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...Research Assignment Report “Ever Lasting Laptop” Suge Meenadchisundaralinkam. Mr.Tamber BMI3C1 Monday November 23rd 2015 Table Of Contents Rubric……………………………………………………………………………………2 Introduction…………………………………………………………………………..4 Procedure And Research Methods…………………………………………...5 Secondary Research (stats Can)…………………………………………….…6 Analysis of Secondary Research……………………………………………….7 Description of Primary Research……………………………………………...9 Good copy of Survey……………………………………………………………....10 Findings and Conclusions……………………………………………………….12 Interpretation of analysis……………………………………………………….16 Recommendations/Conclusion……………………………………………….20 Introduction The innovated product that my company has created and launched is the Ever Lasting laptop. Since, this is the first product that I have launched a general survey will be needed to get a general sense of the population. A marketing survey is a great way to help your team to grow and also for consumers to know that your product is going to be launched. This marketing survey will be needed to find out what consumers want in their laptops and generally where they buy their laptops. To add on, my survey will also give me information on the general income that the population has. The ever-lasting laptop with 10-year battery that I am releasing is generally for teens and adults. This is because; teens need computers to help them function in school and adults need laptops to make-work easier and quicker for them...
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