...Best Buy Case Analysis In 1966 Best Buy began as a single location car and home stereo store founded by Richard Shulze in Minnesota. Now the company is an electronic superstore that has thousands of stores throughout the U.S., Canada, the U.K., and Asia. Best Buy has set themselves apart from its competitors, and have been successful for decades. The electronic superstore sells consumer electronics, home office equipment, appliances, and electronic services. Best Buy showed that they were the electronic store giant when their competitors, Circuit City and CompUSA were shut down due to the recession. Unlike these companies, the recession did not slow Best Buy’s revenue until 2011 when they had a sluggish 1.16 revenue growth for the 2011 fiscal year. Although two of their major competitors shut down due to the recession, several more emerged and proved to be threats to the electronic superstore giant. Wal-Mart, Amazon, Costco, and Radio Shack all have proven to be threats to Best Buy for numerous reasons. Each of these competitors distinguish themselves enough from Best Buy to be able to compete with each other. From Costco’s wholesale, Amazon being able to get past the state tax, and Wal-Mart’s logistics they have proven to be able to compete against Best Buy. As of recently Best Buy has seen a decrease in average growth. In the last five years it’s growth was at 10.26 percent, but in the last three years it has dropped to 7.9 percent. What makes Best Buy different from...
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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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...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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...Intelligence is used in the market all around the world in many different areas. Businesses are benefitted from the different types of BI methods all the time. Two of the BI methods that are beneficial are called the Market Basket Analysis (MBA) and the Decision Tree Analysis. These two BI methods are used throughout businesses in areas such as marketing, financing, Real estate, and accounting. Both of these methods help business similarly, but in their own different ways. They are two different types of methods that both help businesses make the best decisions to benefit their company. There are many methods or theories that people come up with to help with a business but these are the few that will be examined in this paper. The goal of the modeling technique market basket analysis is to find different relationships of activities that have been recorded with data through the performance of people. This method can be used on any situation where information can be recorded and identified (Pillai, 2011). The way to improve methods for discovering company patterns to increase business utility of an enterprise is by recognizing how the community reacts to certain sales or purchases (Pillai, 2011). One of the first steps in using the Market basket analysis method is finding a subject in the business. The subject should be made of a group rather than single person or one individual item. Also, the subject usually gives off a...
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...Executive Summary Best Buy is the #1 “big box” electronic retailer that offers a wide variety of electronic goods and products (Case Assignment: Best Buy). Since it caters to a niche consumer market there is a high demand for our products, which causes a downward pressure on prices. An opportunity for Best Buy to increase revenue would be to offer longer guarantees on products and financing options. However, natural disasters and manufacturing defects pose a great threat to maintaining our high quality inventory and image. Our leading competitor, Wal-Mart Superstores, also poses a threat as they continue to climb the electronic market share. In order for Best Buy to differentiate themselves from any other competitor, SWOT Team is investigating ways to build on its business-to-consumer success and move into the business-to-business world. SWOT Team recommends that Best Buy includes personal, door-to-door selling of products to businesses. The reasons behind this decision would be the competitive advantage over Wal-Mart Superstores. An increase in the quantity of products sold will positively increase Best Buy’s profits. The amount of revenue as opposed to the costs of implementation will result in a high return-on-investment. A major factor in this decision is the creation of personal relationships and strategic alliances with business consumers. These strategic alliances will create a cooperative agreement between Best Buy and business clients (Lamb, Hair, McDaniel...
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...2: Case Study Report Student name: Kyaw Zin Thant @ Phyo Kyaw Lynn Student ID : 30309572 Lecturer : Raymond Lim Due date : 30 September 2015 Word count : 2,579 words Table of Contents Executive Summary…………………………………………………………………………………3 1. Introduction and background of Best Buy……………………………………………………3 2. Stakeholders interested in the performance of the company……………………………..4 2.1 Employees ……………………………………………………………………………………..4 2.2 Managers ……………………………………………………………………………………...4 2.3 Competitors …………………………………………………………………………………...5 3. Three environmental factors on Best Buy…………………………………………………….5 3.1 Political factors ………………………………………………………………………………..5 3.2 Economic factors ……………………………………………………………………………..6 3.3 Social factors…………………………………………………………………………………..6 4. Three selection methods for employees………………………………………..…………….. 7 4.1 Making interview……………………………………………………………………………… 7 4.2 Check the background………………………………………………………………………. 7 4.3 Department transfer …………………………………………………………………………..8 5. Three strategic rewards to retain key employees …………………………………………......8 5.1 Relating rewards and benefits……………………………………………………………….8 5.2 Training………………………………………………………………………………………….9 5.3 Mentoring……………………………………………………………………………………......9 6. Conclusion …………………………………………………………………………………………..10 7. References …………………………………………………………………………………………..11 Executive Summary This is the final report and the chosen case study...
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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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...STRATEGIC MANAGEMENT Assignment 1: Best Buy Brooke Martin Date: Executive Summary (5%) Best Buy is a multinational retailer of technology, electronic and entertainment products and services, with locations in the US, Canada, Mexico, China and Europe. Best Buy operates roughly 4,000 stores in Canada, US, Mexico, China and Turkey, and they represent about 19% of the market. Best Buy as a company has expanded from what was a small retail operation to include many subsidiaries including Geek Squad, Magnolia Audio Video, Pacific Sales and Future Shop. Best Buy needs to be aware of their competition not only in terms of other large retail electronic stores, but their competition now also includes such big box stores as Walmart and on-line retailers such as Amazon.com. Best Buy has a few major challenges that they must be aware of, and continue to improve upon. Firstly, with the downturn of the economy and the consumer cut backs on spending, they must deal with consumers spending less on the products that Best Buy offers. They must focus on differentiating themselves from both physical and online retailers. This is where their customer commitment is vital to their success. Secondly, Best Buy must continue to place a large focus on their customer service, and the knowledge of their staff. Even if customers aren’t buying new products, they continue to have previously purchased products that will need to be serviced. Best Buy needs to offer a unique “shopping experience”...
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...Executive Summary Best Buy Co.,Inc. is an American multinational consumer electronics corporation, the company was founded by Richard M. Schulze and Gary Smoliak in 1966. Globally, with over 100,000 employees, Best Buy was named “Company of the year” by Forbes magazine in 2004. The company achieved its early success by using low cost strategy. As a leading company in the consumer electronic retail industry, Best Buy understands the importance of high quality customer service. The company’s lead market position is attributed to its differentiation strategy, reputable brand name, and series of acquisition. The external analysis indicates that the highest competitive force in the company is the internal rivalry and risk of new competitor to enter into the market. The performance of Best Buy and other competitors in the consumer electronic retail industry really depends on macro environmental factors. The biggest threat that most industries in the global market are facing, is the threat caused by the current economic situation. The internal analysis indicates that strength of the company is their reputable brand name, size, and market presence. Best Buy built its reputation by offering consumer high quality service and new shopping experience. The company expands its business into different market through series of acquisition. The company’s biggest weakness is that company have too much long term debt , which could damage investor’s trust on the company’s performance. ...
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...Case study on Best Buy Submitted to; Mr David Valdes Submitted by; Ouvais Aslam ub 30110356 Naveed Waqas 2014 Executive summary Best buy is one of the leading electronics retail store in USA. It has made multiple attempts to enter in international arena. It had been successful in a few countries but a failure was waiting in the European market. Best buy entered UK by a joint venture with carphone warehouse. Initially company had planned to open up more than 200 stores but due to unsatisfactory performance it had to roll back the 11 launched stores. Along with many small reasons the major causes for this failure seem to be poor choice of country, underestimating the competition in the market, blunders in the location of stores and failing to recognize the changing behavior of the target consumers. The trends in electronic retail are changing all around the world. People now go for online purchasing, so the whole structure of stores should be reviewed. A complete analysis of country should be made before targeting it. The competitive forces should be analyszed properly. Many data and marketing companies provide consumer and competitor behavior details, these services should be applied every time a new big international investment is made. Best buy a case study Best Buy Inc. is an American multinational and multibillion retailer that deals with the consumer electronics. The headquarter...
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...The Accuracy of Fingerprint Analysis Alejandro Ortiz III Strayer University English 215 Dr. Jeffrey Ebberson January 16, 2013 Abstract The main objective of this paper is to show how accurate fingerprint analysis really is. What are the standards that are being used? Have scientific studies been conducted to come up with a universal standard for every lab to use. Keywords: Introduction Best Buy is an electronics retailer based out of Richfield, Minnesota specializing in consumer electronics. The company’s products include in home-office equipment, entertainment software, appliances and mobile products as well as support for all their products. Best Buy has a global presence having operations in Europe, Mexico, China and Turkey (Datamonitor, 2011). The firm has successfully differentiated itself from other firms within this market by using a customer-centric approach having a focus on customer service. This approach has allowed Best Buy to take advantage of the high growth in China as well as sustain growth in the more mature markets in the United States and Europe (Datamonitor, 2011). How Best Buy differentiates itself Best Buy utilizes an overall customer-centric marketing approach using local demographics to tailor products and services. This creates customer loyalty and attracts more affluent customers that need advice as well as setup which cannot be offered by a discount online site. Best Buy has a technically savvy sales staff that can suggest products and services...
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...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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...Online Shopping Behavior in Pakistan Arsalan S. Khan, Faisal Ahmed, Hassan Yousuf, Sohaib ul Hassan and Syed Abbas Zia Karachi School for Business & Leadership Arsalansalahuddinkhan@hotmail.com[->0] 1 Abstract The purpose of this paper is to study the consumer behavior of online shoppers in Pakistan in order to gain insights into their attitudes, preferences, decision-making frame work, and life styles. The target population for this study consisted of the urban consumers who are educated and belong to upper and upper-middle socio-economic classes. Within online shopping, two major categories could be established, namely “Electronics” and “Clothing”. As per our analysis, the experience expected from both the medium is different. For purchasing a commodity offline, the customer would rate the overall shopping experience higher as opposed to convenience. Now we had to establish that what type of goods would be preferred online as opposed to through brick & mortar, and vice-versa. Keywords: online, brick & mortar, electronics, clothingl. 2 Introduction To study the consumer behavior of online shoppers in Pakistan in order to gain insights into their attitudes and preferences, decision-making frame work, attributes for store selection and life styles encouraging online shopping. The target population for this...
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...BEST BUY CASE: Yiming Dong 1. What examples of environmental scanning do you see in the case? What role do you think environmental scanning has played in the company’s future? Although Best Buy is trying to become a perfect electronics retailer, it is not easy to deal with those challenges from external environment. For example, many other retailers, the economic climate has forced Best Buy to carefully consider its strategic options. In my own opinion, I believe that Best Buy will face more challenges in the future. Because as the improvement of technology and science, information is easier obtained by other competitors than before. So Best Buy must think about a good strategy to keep and hold the best information and technology. 2. Using the five competitive factors approach and the information in the case, do a brief industry-competitive analysis. Existing Competitors: We could find lots of products provided by Wal-Mart and Target that are same as goods from Best Buy. However, Best Buy is an electronics retailer, others are super market. Possible Competitors: There are also some possible competitors in the market. For example, we can buy some phones from Amazon and E-bey. Alternative Industry Providers: Although we could buy the same product in other places, there is no any electronics retailer like Best Buy. 3. What types of information do you think Dunn might want from each of the five general environmental sectors? I think that Dunn maybe want to get...
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