This website uses cookies to ensure you have the best experience. Learn more

Best Buy Case Study

1308 words - 5 pages

Today, Best Buy advertises using a “Low Price Guarantee” (Best Buy, 2013). They will match prices on qualifying products if the consumer finds a lower price elsewhere (Best Buy, 2013). Best Buy claims to be the “world’s largest multi-channel consumer electronics retailer with store in the U.S., Canada, China and Mexico” (Best Buy, 2013). That being said, they are the 10th largest online retailer in the U.S. and Canada (Best Buy, 2013). Their loyalty program, Best Buy Reward Zone, is ranked among the best of its kind (Best Buy, 2013). Best Buy has over 145,000 employees worldwide (Best Buy, 2013).

In Best Buy’s 2013 Annual Report, they company discusses its current International Segment (Best Buy, 2013). In 2009, Best Buy acquired the remaining 25% interest of Five Star (Best Buy, 2013). In 2013, they introduced the Best Buy Mobile concept in China (Best Buy, 2013). After success in its Canadian stores, they now offer the store-within-a-store experience in select Five Star stores (Best Buy, 2013).

Best Buy’s strength as a company comes from its innovative nature. They took their salespeople off commission to provide a different, informal buying experience for their customers (Ferrell & Hartline, 2011). The company also specializes in repairs through its Geek Squad division, which is an innovation that sets them apart from competitors (Ferrell & Hartline, 2011).

Best Buy’s weakness is its ever-growing competition in the CE retail market (Ferrell & Hartline, 2011). The online retailers are simply outpacing them. Even when a consumer goes to the store to look at a product, Best Buy is not guaranteed a sale. Often consumers will go try out the products in a store, like Best Buy, but then order the product online after they have left the store. It is just too easy to compare prices in the online environment.

The company has opened up opportunities with its “Low Price Guarantee” (Best Buy, 2013). Even if a consumer does find a product cheaper online, now they can take that offer into a Best Buy store for a price match. Instead of waiting for shipping, the customer can have immediate access to the product they are purchasing. They also have opportunities in growing their reach internationally. Best Buy already has locations in the U.S., Canada, China and Mexico (Best Buy, 2013). If they expand further, it can only provide larger international brand recognition.

The threats to Best Buy will always be its online competition, like Amazon.com. They must find a ways to remain competitive in the online retail market. With more international locations, they will gain more international brand recognition and with that online sales will grow.

A dual-brand strategy should be used only when there is a fragmented market (Ferrell & Hartline, 2011). There needs to be room for both brands to grow in the market place (Ferrell & Hartline, 2011). The dual-brands need to be positioned as competitors with different business strategies (Ferrell &...

Find Another Essay On Best Buy Case Study

Best Buy Essay

896 words - 4 pages had expected earnings to decline in a decelerating economy," Best Buy chief executive Richard Schulze said in a statement. But, he added, "I remain confident that we are on track to deliver earnings growth of 16 to 18 percent this year," or $2.16 to $2.21 per share, assuming no significant decline in the economy. ‘ this seems to be the case with most retail chains but with the amount of expansion that Best Buy is working towards

How to Turnaround Best Buy Essay

3809 words - 15 pages in the US. IBISWorld Inc. Retrieved from IBISWorld. GlobalData. (2012, August 03). Best Buy Co, Inc. - Financial and Strategic Analysis Review. GlobalData. Greg, G. (2013, January 24). Strategic initiatives case study: Best buy’s “renew blue” turnaround. Retrieved from http://leadingstrategicinitiatives.com/2013/01/24/strategic-initiatives-case-study-best-buys-renew-blue-turnaround/. Heller, L. (2012). Where is best buy’s turnaround plan

Case-study for finance: Which is the best choice for the Verdin company?

2207 words - 9 pages a long length. And if the payback period is long, to some degree it can lead to missing on likely new investment opportunity.when to use IRR:when all of the investment alternatives have the same size and length, we should use IRR as our criteria to choose the best project.Minimum accepted ROR:The advantages of minimum accepted ROR: Compared with other measurements, the biggest advantage of minimum accepted ROR maybe is its convenience. There is

Research Paper Inventory Management System of Best Buy and its functions in Retail

2141 words - 9 pages After almost 50 years of operation, Best Buy is the leading retailer of consumer electronics, mobile phones, computers, appliances, televisions, digital imaging, and entertainment products. The company operates online retail and retail stores under the name Best Buy and owns Geek Squad, Magnolia, Five Star, Future Shop and Pacific Sales. The company has two segments. A Domestic segment which is composed of its operations in the United States

Best Buy Co

790 words - 4 pages There are many companies out there, that are spread throughout the world, one of those companies is Best Buy. Best Buy is best known for selling computers, laptops and televisions. Is there more than just that. There are more questions that many want answers to. Like who is in charge, what much to they make a year, how do they make decisions, how many people do they have working from them. Sound of Music was founded in 1966 by Richard M

Research on Best Buy Co

3952 words - 16 pages Research on Best Buy Co. The roots of Best Buy Co., Inc. can be traced back to St. Paul, Minnesota. This is where founder Richard Schulze opened the doors of his Sound of Music store in 1966. Understanding a demand for consumer audio components and systems in the St. Paul area, Schulze managed to provide a combination of great prices and excellent service, thus building a strong customer base, which quickly prompted an expansion into home

The Best Acrylic Paint To Buy

894 words - 4 pages each manufacturer the colors and properties that suits him best for a particular project. It is common for an artist to use a number of brands of paint, and acrylic is no exception. The acrylic artist is often a chameleon, switching technique on a whim. Impasto one day and soft watercolor washes the next. Then perhaps use several techniques all on one painting. There are occasions when the student or craft grade acrylic is suitable. However, a beginning artist should start with a basic set of professional colors, learn to mix those for a wider range of hues, and add additional colors as the budget and need allows. He should buy the best quality he can afford.

Strategic and Operational Plan: Best Buy

2302 words - 9 pages Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely

A Business Analysis of Best Buy

1470 words - 6 pages Best Buy was not always called Best Buy. In 1966 Richard M. Schulze and his partner (Gary Smoliak) founded Sound of Music. This was later renamed to the name that many know as Best Buy. But is there more to Best Buy that consumers should know? For example who is in charge, how much do they make a year, how do they make their decisions, how many people work for them and more. Sound of Music was mostly known for audio specialty. In the same

Best Localities to Buy Plots in South India

883 words - 4 pages Best Localities to Buy Plots in South India Land is a valuable asset, always in demand and it promises good price appreciation. These are the factors that attribute to an upward trend of people investing in land in India. Mr. Dinesh Babu K, Marketing Manager of ABI Estates states that land is an asset that only appreciates with time and does not have instability of gold. One can find 1000% appreciation in land, irrespective of the location

You have $2,000.00 to get the best computer system you can get for the money. What system will you buy?

1735 words - 7 pages with a permanent collection of pre-set instructions. It is built into the motherboard and there is nothing that we can do about it. However, the best known form of computer memory is the RAM or Random Access Memory. RAM is considered "random access" as it allows the user to access any memory cell directly if the row and column that intersects at that cell is known. Next to the CPU, the RAM is the most important component in a computer

Similar Essays

Organizational And Hr Management: Best Buy Case Study

1443 words - 6 pages Case Study of Best Buy, Inc. Best Buy’s History & Main Characters: Best Buy is Minneapolis-based and is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Throughout Best Buy's 37-year history, the company has maintained the tradition of making life fun and easy for customers and employees, while providing a significant return to partners and investors. It has

Best Buy Case Analysis

4377 words - 18 pages I. MissionBest Buy has been changing their mission statement through the years which can be looked at as their weakness not being able to provide a stable one."Our formula is simple: we're a growth company focused on better solving the unmet needs of our customers-and we rely on our employees to solve those puzzles. Thanks for stopping. "Company's mission in 2005: "Best Buy mission is to bring technology and consumers together in a retail

Best Buy Case Brief Going Through Proper 5 Forces Analysis And External Factors Impacting Company Mgmt 434 Case Brief

433 words - 2 pages Zan Quadri MGMT 434 Professor Miller Case Study 4 A key issue facing BestBuy currently is the growth of Amazon. Amazon has been changing the industry of technology and electronics by providing an online shopping experience to make it easier for customers. Stores like BestBuy are merely showrooms now for customers to come to and test out products to see which they like, then they will order on amazon. Offering a same day delivery and beating

Ramada Demonstrates Its Personal Best A Case Study

1251 words - 5 pages data received from the staff. As equally important, direct involvement with management was vital to the buy-in of the management teams.Ramada used a party-like atmosphere to place its employees in a more relaxed state and to extract more information. As stated in the case study, they needed more than "employees checking off boxes on a piece of paper." Conducting research in a party-like atmosphere can have both advantages and disadvantages