...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 second-largest consumer electronics retailer, breaking into Fortune magazine’s annual ranking of top 500 companies two years later at number 373. A partnership with Microsoft in 1999 help...
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...ventures – chemical, electronics, ceramics, and construction materials. The diversification into the various industries as noted above was very successful, as by the 1950 to early 1970’s following the second world-war Asahi’s glass and construction materials business accounted for more than 50% of its total revenue, and its chemical business at 40% and other business segments including electronics and ceramics contributing to 10% of the company’s total revenue. By 1992, the company’s glass (flat glass) business segment contributed 56% of total sales and revenue making it the most profitable segment out of the four diversification business segments. I believe AGC’s diversification was much needed post the second world-war, as it helped serve as the foundation to emerging technologies and manufacturing of newer consumer products – cements, automotive lighting, paints, chemicals such as chlorofluorocarbons – CFC for refrigerators and air conditioners. Following the oil crisis in the early 1990’s, AGC management – then President Mr. Sakabe decided to focus on the company’s electronic segment business because of its growth potential and having some expertise in the electronic industry. Furthermore, AGC top management had a goal of developing electronics to generate 10% of the company’s revenue within the next 10-years after its decision in the early 1990’s to focus on the electronics industry. In hindsight, the decision to focus on the electronics segments proved to be...
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...1. Introduction The ability of firms to secure their market position is considered as vital for their survival. In practice, it has been proved that firms that have faced severe challenges have managed to recover using appropriately customized strategic options. The potentials of small Japanese firm, Elecdyne a small size firm that operates in the electronics industry in Japan to stabilize its performance through internationalization is explored in this paper. Three countries have been reviewed as of their appropriateness to support the firm’s specific initiative: USA, China and Australia. At the same time, a SWOT analysis and a PEST analysis have been employed for revealing the potentials of the organization to improve its performance through internationalization. Three different methods for entering the market chosen are presented. It is concluded that the expansion of the firm in a foreign market could highly support the increase of its profitability but only if certain terms are met, as indicatively highlighted in the sections that follow. In any case, it seems that the continuous monitoring of the relevant process is necessary for avoiding unexpected failures. 2. Current and Future Business Environment One of the most important characteristics of the global market is its high competitiveness, a fact that has been related to the expansion of globalization (Griffin 2008). At this point, the following issue appears: how the potential of a firm to face the challenges of the...
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...Byung-Chull Lee revived the company, reaching even greater prosperity in just one year. He was engaged entrepreneur in many areas of interest including: the production of sugar, wool and other consumer goods , retail, insurance, broadcasting, publishing, securities trading. In 1960 Samsung witnesses unprecedented success. In order to rebuild the economy of Korea, a policy of development of large national companies was created. State subsidized the companies, supported and helped in every way newly build corporations by actually creating hothouse conditions to them and eliminating the competition. Samsung’s founder managed to get close to government circles and this provided unlimited opportunities for growth and expansion. In 1970 Samsung enters the semiconductor market, seeing the prospects of this trend and the rapid development...
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...Situation Overview of the LEGO Group • Market position: Niche player in a global toy market & No.1 in construction toy category • Core Competencies: Strong brand, high quality products and innovation abilities • Recent performance: experienced some major losses but is turning better 2. Problem Statement • Issue Definition: Being a niche player in a tightening market, How can LEGO group achieve sustainable profits of 13.5% and growth rate of around 7% in the coming years by leveraging its core competency? • To solve this issue, the company made a three-phased shared vision plan in which we based our strategies on 3. Strategies 3.1 Short-term Strategies: Profitability Focus 3.1.1 Interpreting the Profitability Goal • To achieve reasonable margin compared to major industry peers, that is operating margin of 13.5%, according to future expectations made in 2006 Annual Report • To maintain sustainable profitability in the relatively cyclical toy industry 3.1.2 Strategies and Implementations to Meet the Goal 3.1.2.1 Product Strategies: adjust product portfolio and build defensive core products • Focus on pre-school/infant toy segment in which the demand is driven up by “age compression” and is less affected by come-and-go entertainment fashions • Continue reinvigoration on LEGO classic toys, which are less affected by toy trends • Take calculated risk to ride on the trends by developing licensed products and electronic products 3.1.2.2 Competition Strategies:...
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...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 | Opportunities * Acquisitions * Expansions * Expanding the product lines | Threats * Competition * slow sales curve...
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...Larson Inc. must consider the alternative economic futures for their industry. In any market, economic conditions will change over time. The company must be able to adapt and change with the economy to remain successful. The company needs to find solutions for the changing economy to keep increasing their revenue and decreasing their costs. The economy may go through a recession, expansion and peaks over their years in business. Larson, Inc. needs to analyze the difference scenarios and determine the best course of action for each type of economic future. Also, the company must consider the economy’s stage in the business cycle to make well-informed decisions. Economic projections The business cycle will have continual change and fluctuate over time. History has shown us how the economy goes through peaks, recessions, troughs, and expansion. It is important for all businesses to understand the concepts of macroeconomics and how the business cycle is affected. Larson, Inc. can plan for the changes to remain successful and innovative. The business cycle is determined by the changes in GDP or gross domestic product. The change in the GDP can occur from economic reasons such as changes in demand, taxes and interest rates. It can also change from non-economic reasons such as war or natural disasters. The company must be aware and analyze the different indicators of the changing economy. The recession, in which Larson Inc. is currently experiencing, is a normal...
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...Executive Summary Tsinghua Univerity 1. Situation Overview of the LEGO Group • Market position: Niche player in a global toy market & No.1 in construction toy category • Core Competencies: Strong brand, high quality products and innovation abilities • Recent performance: experienced some major losses but is turning better 2. Problem Statement • Issue Definition: Being a niche player in a tightening market, How can LEGO group achieve sustainable profits of 13.5% and growth rate of around 7% in the coming years by leveraging its core competency? • To solve this issue, the company made a three-phased shared vision plan in which we based our strategies on [pic] 3. Strategies 3.1 Short-term Strategies: Profitability Focus 3.1.1 Interpreting the Profitability Goal • To achieve reasonable margin compared to major industry peers, that is operating margin of 13.5%, according to future expectations made in 2006 Annual Report • To maintain sustainable profitability in the relatively cyclical toy industry 3.1.2 Strategies and Implementations to Meet the Goal 3.1.2.1 Product Strategies: adjust product portfolio and build defensive core products • Focus on pre-school/infant toy segment in which the demand is driven up by “age compression” and is less affected by come-and-go...
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...Question 3: Does Dells expansion into other IT Products and services make good strategic sense? Why or Why not????? Dells decision to expand in to other IT Products and services made good sense as customer can be brand loyal and prefer to have matching components for their PCs. Dell has a quality reputation which customers know and trust. Dells expansion into data storage hardware, switches, handheld PCs, Printers, and Printer Cartridges and software products represented an effort to diversify the company’s product base and to use its competitive capabilities in PC and servers to pursue revenue growth opportunities. The expansion into different products and services complemented sales of PCs and Servers. In 1995 Dell had a 2% market share in the server market, increasing to 30% in 2008. Dells idea to sell Data Routing switches proved to be a clever strategic move as they were able to price products 2 and a half times less than the market leader at the time Cisco. This resulted in Dell shipping 1.8 million switch ports in the period of a year. Senior Dell executives saw external storage devices as a growth opportunity because the company’s corporate and institutional customers were making increasing use of high speed data storage and retrieval devices. Competition in the IT industry can be a challenge. So for any company to survive within that industry, it has to have the ability to harness the basics of its core competencies to the very maximum. This is an inventive design...
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...report highlights the industry trends of the consumer electronics retail market as well as focusing on how JB Hi-Fi’s segmentation, targeting and positioning strategies. Consumer behaviour is also analysed using the buyer decision process as well as other factors such as culture being identified as important to JB Hi-Fi’s strategical approach. The core of the report contains detailed analysis of the marketing mix, competitive situation analysis and use of the PESTLE. These examined how the company creates value in its current environment as well as the impact of external influences. Lastly the report identified JB Hi-Fi’s recent expansion into the whitegoods markets with as a potential opportunity for the company to grow and expand into other industries, thereby repositioning the brand in the minds of consumers. Table of Contents Executive Summary 2 Introduction 5 Industry Trends 6 Target Markets 6 Consumer Behaviour Issues 7 Marketing Mix 9 Product 9 Price 9 Place 9 Promotion 9 Process 9 People 10 Physical Evidence 10 Competitive Situation 11 Factors Indicative of Intentions and behaviours 11 Comparison between Marketing mix and STP Model 12 Macro Environment 13 Demographic 13 Aging Population 13 Households 13 Economic 13 Recession 13 Australian Dollar 13 Natural 14 Political 14 Free Trade Agreements 14 Technological 14 Online Shopping 14 Advancing Electronics 14 Consumers Have Limited Time 15 Healthy Lifestyle...
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...Case No.1: Hightone Electronics Inc. Hightone Electronics, Inc. was founded in Palo Alto, California over 50 years ago. Originally, the company provided radio components to small repair shops. Products were offered for sale through a catalogue that was mailed to prospective customers every four months. The company built its reputation on high quality and service. As time passed, HEI began supplying more than just radio parts, adding items such as fuses, transformers, computers, and electrical testing equipment. The expansion of the product line had been coupled with an increase in the number and type of customers the company served. Although the traditional repair shops still remained a part of the company's market, technical schools, universities, and well-known corporations in the Silicon Valley were added to the list of customers. Today HEI operates the Palo Alto facility with the same dedication to supplying quality products through catalogue sales that it had when it was first founded. Customer service remains the top priority. HEI stocks and sells over 22,000 different items. Most customers receive their orders within 48 hours, and all components are warranted for a full year. Statement of the Problem: The HEI wanted to expand the business including the Web-based purchasing which the board felt that it is needed to offer on-line purchasing to its customers in order to maintain its competitive position in the market. Objective: This study explored the perceptions...
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...Our liquidity requirements arise primarily from our need to fund working capital requirements and capital expenditures. We make capital expenditures principally to fund our expansion strategy, which includes, among other things, investments in new stores and new distribution facilities, remodeling and relocation of existing stores, as well as information technology and other infrastructure-related projects that support our expansion. During fiscal 2014, we plan to open a limited number of stores in existing markets. In addition, we plan to continue to invest in our infrastructure, including management information systems and distribution capabilities, as well as incur capital remodeling and improvement costs. We expect capital expenditures, net of sale and leaseback proceeds and tenant allowances from landlords, for fiscal 2014 store openings and relocations to range between $28 million and $32 million. We expect capital expenditures for fiscal 2014 will be funded through cash and cash equivalents, income from operations, borrowings under our Revolving Credit Facility and tenant allowances from landlords. We have made additional investments in advertising and inventory of our home entertainment furniture and fitness. We have made additional investments in advertising and inventory of our home entertainment furniture and fitness equipment product offerings. If the strategy of increasing our emphasis on home entertainment furniture and fitness equipment offerings is unsuccessful...
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...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 several opportunities including economies of scale, complementors, and global expansion. The threats recognized are the growth of the Internet in terms of consumers shopping online for products, the realities of their big competitors, and developments...
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...What are the opportunities and threats that Mattel faces as it looks ahead? SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face. The SWOT analysis below is to understand the areas of improvement for Mattel while analysing its strengths. Also, to maximize the opportunities it has and minimize the threats. SWOT for Mattel Strengths Still a market leader- although it is true that the competition has increased over the years for Mattel, the current market capital is 8.67B. The question about whether they will bw able to retain this position or not, however, is debatable. Strong brand equity – Building brand equity requires significant effort. Mattel has both single brand and multi brand identity. (Phillips, 2003) Loyal customer base – Mattel has been in the market since the 1950’s. They have a large and loyal customer base. (Warner, Aug 5, 1996) Wide range of products - Mattel believes its products are among the most widely recognized toy products in the world. Mattel’s portfolio of brands and products are grouped in the following categories: Mattel Girls & Boys Brands - Including Batman , and Kung Fu Panda products, and games and puzzles. Fisher-Price Brands — Collectively Core Fisher-Price, Fisher-Price Friend and Power Wheels. American Girl Brands —including Just Like You, the historical collection, and Bitty Baby. Strong distribution line...
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...errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies‟ opinions, reader discretion is advised. Non-Store Retailing Internet Retailing Non-Grocery Retailers Electronics and Appliance Specialist Retailers Apple Inc, goes from strength to strength thanks to unparalleled consumer loyalty and brand equity, superlative store experiences, a strong portfolio of products and a customer service strategy that sets it apart from its rivals. Lacking strong leadership store sales have struggled - sales per store in 2013 were flat. Appointment of ex Burberry CEO as new VP of Retail and Online is expected to provide much needed boost to Apple retail operations – both in store and online. STRATEGIC EVALUATION COMPETITIVE POSITIONING GEOGRAPHIC STRATEGY AND OPPORTUNITY CHANNEL STRATEGY AND OPPORTUNITY BRAND AND PRIVATE LABEL STRATEGIES OPERATIONS RECOMMENDATIONS Apple Inc Headquarters : Regional Cupertino, California, USA Apple Inc, the consumer electronics giant, is also the operator of a substantial retail division. This includes 416 (and rising) stores in the US and 13 other markets,...
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