Best buy

BUSINESS OBJECTIVE AND MISSION
Obtain, maintain and grow the market share
International growth
Connected digital solutions
Efficient enterprise

Best buy in consumer electronics industry
Best buy’s top priority is to increase the level of
connectivity with its customers.
Growth for best buy exceeded the industry average.
Best buy is one of the top speciality retailers in the
country.
Best buy faces intense challenges as Walmart
Bolsters efforts to take market share in electronics
as consumers seek out extreme value

THE STORY
1985: Best buy debuts on NYSE
1992: Best buy hits $1 billion annual revenue.
2000: Best buy online store launched
2002: Best buy acquires geek squad
2004: Geek squad opens in every best buy store
2007: Best buy acquires internet service provider,
speakeasy
2008: Best buy purchases online music service,
Napster
2011: Best buy introduces national E-fairness
legislation
2015: Best Buy announced the shutdown of the Future
Shop chain in Canada

Major competitors are Walmart, apple, amazon,
radioshack, etc.
Tough economic times have retailers scrambling
to pick their share of sales.
Many suppliers like sony, apple, samsung, etc.
are increasing their own branded showrooms.
Level of threat: Moderate-high

Price deflation will stimulate demand but frugal
consumer spending habits and credit restrictions.
During FY2009, electronics had revenues of
$16,263 million, a decrease of 0.1% as
compared to FY2008.

Knowledgeable staff
Consumers have a positive view of best buy as
compared to walmart
Strong market presence
Loyalty programs- “Reward zone”
Acquisitions like future shop, geek squad, napster
Private brand recalls
Constrained credit availability
Drop in comparable stores

Growing online sales
Private brand potential
Expanding presence in China, Mexico,
Europe, Turkey, etc.
Intense competition
The economic slowdown
Quality issues with chinese exporters
Political disputes between countries like US,
China, etc.

Pricing strategy
Pricing techniques which includes core merchandise
In the price war between best buy and walmart best buy is
second behind walmart
Multiple pricing
Service components such as geek squad, free haul-away
Warranties

Multiple channels of distribution
Retail stores sell products as well as provide geek
squad support.
Online website offer products and services offered in
stores with occasional online discounts and promotions.
Products can be shipped and also arranged for in-
store pickups.

What are the keys to Best Buy’s success? What are the
risks going forward
One of the keys to Best Buy's success is good
management. Best Buy has had a good management
since the day of its inception and it is what has brought
them this far. Another key is a friendly environment
they provide to their employees. Risks they encounter
include competition from their counterparts and failed
research.

How else can Best Buy compete against new competitors
like Walmart and online companies?
Walmart and online electronic retailers are tough competition to
Best Buy because of their low prices but Best Buy competes with
quality service and customer targeting and positioning. Best Buy
provides delivery and installation by highly trained employees and
warranties that guarantee that their products with function
according to expectations. Advanced research and development can
lead the company to design its own digital cameras, televisions,
computers, sound systems, etc. to compete with growing chain
retailers and a profitable electronic market. By continuing its
strong force of customer service driven sales tactics and potentially
investing in future technology, Best Buy can compete in a growing
market.

Best buy

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