...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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...1. To set Best Buy apart from its competitors, Schulze introduced the warehouse-like store format in 1989 and took sales staff off commission. The number of employees per store was reduced by about a third, resulting in significant cost savings. This concept was crucial to Best Buy’s ascent to become the second largest consumer electronics retailer in the U.S. by 1993. strategy of non-commissioned employees to give customers more control during the purchasing experience. 1966 Richard M. Schulze & partner establish Sound of Music, Inc., a home and car stereo store in St. Paul, Minnesota. 1971 Richard Schulze buys out his partner 1982 Sound of Music Inc. expands to include household appliances. 1983 Sound Of Music Inc. becomes Best Buy Co. Inc. 1985 Best Buy Co. Inc. goes public, with an initial offering of $8.3miilion. New symbol is witnessed on the New York Stock Exchange. BBY 1989 Company introduces its Concept II stores, which have a warehouse format and no commissioned sales help 1992-1993 Best Buy surpasses the $1 billion mark in annual revenues 1994 Concept III stores, with hands-on information displays introduced 1999 Revenues surpass $10 billion 2000 Website www. Bestbuy.com is launched; Acquires Magnolia Hi-fi Inc. for $88 million , adding 13 more stores to the West coast Fundamentally, Best Buy's strategy is to reduce square footage, increase margin, reduce costs, and grow standalone businesses By 1993, Best Buy had become the United States...
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...Executive Summary Currently Best Buy maintains the distinction of being the largest big box electronic retailer in the United States. The company has a top-ranked internet retail website and the number one customer loyalty program of its kind. Best Buy has more than 1 billion visitors to their websites and 600 million visits to their stores each year. Although this would seem to carry a significant market advantage, consumer purchasing practices has evolved from a direct contact, feel and touch experience to a remote, internet based method of research and shopping. The Consumer Electronics market has seen a steady decrease in revenue over the last three years. It has only been maintained in the margins by Smartphone and Tablet sales. The shrinking market and loss of market share to online retailers such as Amazon has taken its toll on Best Buy’s bottom line. Best Buy hopes to change this by making their sales associates and Geek Squad agents the authority on consumer electronics, delivering unbiased, knowledgeable advice hundreds of millions of times a year and offering unmatched support for the lifetime of the products they sell. These are all portions of Best Buy’s efforts to Renew Blue. This marketing plan also recommends two additional opportunities to increase market share. Developing an All in One system that allows Best Buy customers to receive system integration similar to Apple products for any product purchased from Best Buy, regardless of manufacturer. Additionally...
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...Best Buy MGT/521 - MANAGEMENT BUSINESS Description Best Buy or BBY is one of the leading developers of technology products and technology services. Best Buy is broken down into two segments; domestic and international, and works under a variety of names. In the domestic region there is Best Buy, Best Buy Mobile, Magnolia Audio Video, Pacific Sales, and Geek Squad. The international regions include; Canada, China, Mexico and Europe and use the brand names; Best Buy, Cell Shop, Best Buy Mobile, Five Star, Future Shop, Connect Pro, Geek Squad, The Carphone Warehouse, Geek Squad, and The Phone House. (Reuters, 2012) Best Buy stores currently make their money in six categories: • Consumer Electronics – Video products like TVs, DVD and Blu-ray players. Audio products like MP3 players, home theater audio systems and components, • Entertainment – Video games, DVDs, Blu-rays, CDs, and computer software, • Services – Installation from home theater and mobile audio, warranties, and repair, • Computing and Mobile Phones – Laptops, desktops, tablets, and printers, • Appliances – Major and small appliances, Other – Snacks and beverages History To understand the history of Best Buy, one would have to know the history of its founder, Richard M. Schulze. Mr. Schulze and a partner started Sound of Music, Inc. in 1966 with their first store in St. Paul, Minnesota. Four years later Schulze bought out his partner and decided to expand. His first step to expand came in 1982...
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...Best Buy- Circuit City Case-17% 1. Be an informed consumer evaluate where the replacement of highly paid workers with lower paid worker did or did not cause Circuit city to perform so poorly. How confident are you in your evaluation? Why? In evaluating whether or not the replacement of highly paid workers with lower –paid worker at Circuit City caused them to perform poorly I found several factors that lead me to believe this to be true. Circuit City started off being the number one retailer of electronics. It was faced with competition from Best Buy and other large retailers such as Wal-Mart. Circuit City was forced with making changes within the company to keep their position within the market that they didn’t take. In 2003 Circuit city announced the layoff of 3900 workers, following this announcement opening stock price from 2001 to 2003 declined significantly. Also, in 2007 Circuit City fired 3,400 of the highest paid store employees at that same time their customer satisfaction index declined. Circuit City’s compensation strategy was in direct correlation to the business tactic, it rewarded its knowledgeable top performers. Circuit City never considered that by eliminating top earning sales people for less experienced sales people that it would have an indirect effect on the company as a whole. No longer to do they employ skilled and knowledgeable professionals whom customers relied on. Ultimately, managing total compensation strategically means fitting the compensation...
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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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...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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...The Hershey Company Presents Bucket of Chocolate The Hershey Company Presents Bucket of Chocolate Table of Contents Situational Analysis Executive Summary 4-5 Introduction 5-6 Industry Analysis 7 Product Category 7 Nature of Demand 7 Product Life Cycle 8 Top Competitors 9 Company Analysis 9 The Hershey Company Background 9-10 The Hershey Company Mission Statement 10 The Hershey Company SWOT Analysis 10-16 Competition 17 Nestlé Background & SWOT Analysis 17-21 Mars Background & SWOT Analysis 21-25 Objectives for the New Product Plan 25-29 Segmenting, Targeting, Positioning 29 Segmenting 29-30 Demographic 30-32 Geographic 32-33 Psychographic 33 Behavioral 34 Target Market 34-35 Positioning 35 Marketing Mix Product Decisions 36 Product Description/Classification 36 Branding, Packaging, and Labeling 37 Hershey’s New Product vs. Hershey’s Existing Products 38 Hershey’s Bucket of Chocolate vs. Competitors 38-39 Price Decisions 39 Pricing Strategy 39-40 Hershey’s Bucket of Chocolate vs. Competitors 40-42 Place Decisions 43 Distribution Channel and Physical Distribution 43 Distribution Intensity 43-44 Placement Decisions Fit Positioning and Pricing Goals 44-45 Hershey’s In-Store Placement vs. Competitors...
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...About | Contact | Jobs | [pic] • Lesson Store • Buy Video • Exercise Store • Powerpoint [pic][pic] Marketing Teacher: Home / The Marketing Environment The Marketing Environment [pic][pic][pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic]The Marketing Environment What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute...
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...Coca Cola Co. Name MGT 521 Date Professor’s Name Coca Cola Co. “On May 8, 1886, a pharmacist named Dr. John Pemberton carried a jug of Coca-Cola® syrup to Jacobs’ Pharmacy in downtown Atlanta, where it was mixed with carbonated water and sold for five cents a glass” (Coca Cola Co, 2012). Coca Cola is one of the all time biggest beverage company in the industry, that went from selling a few drinks a day from a pharmacy in Atlanta, Georgia to selling billions a day all over the world. According to the Fortune 500, Coca Cola Co ranks number 59 on the 2012 list with revenues of $46,542. millions and profits of $8,572. Millions (CNN Money, 2012). SWOT Analysis The SWOT Analysis is “ a planning tool used to analyzed an organization’s strengths, weaknesses, opportunities, and threats” (Nickels, W.G, McHugh, J. M. & McHugh, S.M., 2010). Coca Cola Company is the major distributor, maker, and seller in the world, but one of the company’s biggest threat is the competidor such as Pepsi Co. that tries to stay at the same leves as Coca Cola. Strengths Some of the strengths that Coca Cola have are the well known brand, popularity, consumer faithfulness, good advertising and promotion, strong financial position and profits, and International Trades. Coca Cola has been in the Market for over 100 years and is well known all over the world. The company’s ads are popular, specially during Christmas season and Super Bowl. Coca Cola’s branding is recognized worldwide...
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...Zerbe (2010) reported that the President’s Cancer Panel is now urging people to eat foods grown without such harmful chemicals; organic foods. Due to such health concerns, organic food markets are slowly gaining popularity again as consumer demand is rising. This is great news not just for the consumers, but also the local organic farmer stands, e-commerce organic product sites and stores like the Whole Foods Market. In fact, this research will present the Whole Foods Market, Inc. strategic analysis. This analysis is being conducted to provide advice on how to integrate Whole Foods into ABC Company. It will cover the first step in the strategic planning process which is Whole Foods Market’s mission, vision and values; followed by presenting company’s Strengths, Weakness, Opportunities and Threat (SWOT) analysis. This research will further discuss competition within the industry by conducting the Porter’s Five Forces Analysis and describe Whole Foods Market’s strategic position. Based on this analysis, I will provide my recommendation for the integration of Whole Foods into ABC Company. Whole Food...
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...Ghoreishi Best Buy: Strategic Audit June 8, 2015 Current Performance: Best Buy’s historical advantage has always been pricing. However, now that other specialty electronics retailers have dropped out of the market with the fall of Tweeter and Circuit City, Best Buy now must compete with discount retailers such as Kmart, Wal-Mart, Target, Sam’s Club, Costco, as well as online retailers like Amazon. Consumers no longer have to go to Best Buy to purchase DVDs because buyers can get them through dozens of online sellers or stream them online via NetFlix or Amazon. You can buy a Blu-ray player or camera at a discount online. Televisions and appliances are the two products Best Buy sells that many people are less likely to purchase online because of their size and prohibitive shipping costs. If Best Buy wants to continue to be the number one seller of electronics and electronics related accessories such as games, DVD's, and electronic wiring, Best Buy needs to focus on shoring up television and appliance dominance to ensure sufficient foot traffic. Best Buy must also address the phenomenon of 'show rooming', which is the practice of shopping for merchandise in a brick-and-mortar store and later buying online at lower prices. In the past, Best Buy has provided only one week training sessions for new hires. However, as a first step to prevent show rooming, Best Buy will provide...
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...Best Buy Research Part III Team B RES351 September 6, 2012 Dr. Bill Business Research Best Buy Co, Inc. SWOT Analysis; Feb2012, p1-12, 12p Company Report 2012 Bernoff J. (April, 09, 2012). Proof that Facebook fans are worth more to brands. Retrieved August, 4, 2012 from, http://forrester.typepad.com/groundswell/strategy/ Best Buy Research Design In today’s market a company in the retail business has to be able to adapt quickly and efficiently to be able to grow with the every changing world of electronic goods. Best Buy is no exception to this, and in the recent it has shown how unprepared this company has been in this area. For years now the company has seen a decline in sales, and as well as profits. While the company has implemented several strategies as how to increase profitability, but still online retailers remain a strong competitor for Best Buy and its subsidiaries worldwide. So as Best Buy goes through a restructure process of its operations, maybe there are questions that should be asked, variables to be considered, hypothesis to research on, and above all if this is all being done ethically to bring Best Buy to where it use to be in profits and revenues. One of Best Buy’s strengths is that they are one of the largest specialty electronic retailers with a strong track record of sustaining downturns and they have a strong supporting infrastructure (SWOT Analysis 2012). Their potential weaknesses however, are that recalls...
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...Apple SWOT analysis 2014 Your best insight into Apple's strengths, weaknesses, opportunities and threats this year. Company background Name | Apple Inc. | Industries served | Computer hardware Computer software (iOS, OS X, Safari, iLife, iWork, iMovie, iPhoto) Consumer electronics (iPod, iPhone, iPad, Apple TV and Mac products) Digital distribution (iTunes store, iCloud, App StoreSM, Mac App Store) | Geographic areas served | Worldwide (retail stores in 14 countries and online stores in 39 countries)[1] | Headquarters | Cupertino, California, United States | Current CEO | Timothy Donald "Tim" Cook | Revenue | $170,910 billion (2013) 9.2% increase over $156,508 billion (2012)[2] | Profit | $37,037 billion (2013) 12.26% decrease over $ 41,733 (2012)[2] | Employees | 80,300 (2013) | Main Competitors | Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others. | Business description This is an Apple business description taken from company’s financial report: “The Company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and...
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...EBay Corporation Inc. Business strategy and policy Introduction E-commerce and online industries are firms who market and sale their products online. The internet is the main selling unit that connects the retailers and the consumers. It helps people make purchases more easily than when the go to stores in search of products to buy. EBay Inc. is a sole proprietorship formed around sept 1995. The incorporation took place in California in May 1996 and corporates in Delaware in April 1998. In other to sustain and maintain the success of the company Pierre and his co-founder, Jeff Skoll brought in Meg Whitman who studied business at Harvard business school with the experience of branding company for example Hasbro. Ecommerce and online industries are firm who market and sale their products online. The internet is the main selling unit that connects the retailers and the consumers. It helps people make purchases more easily than when the go to stores in search of products to buy. EBay’s mission statement The mission statement for the corporation “our mission is to provide a global online market place where practically anyone can trade practically anything, enabling economic opportunity around the world”. This mission statement simply states the goal of the company, it states the vision of what eBay has planned and will contribute to do for the buyers and sellers around the world. This gives the customers enough confidence in the company to make payment with trust and...
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