Problem Definition:
The main problem that the company faced was the threat of “Showrooming” which was the practice of consumers visiting retail stores to test electronic products and the leaving to purchase the product online. The company lost its momentum towards growth in the fast changing marketplace. E-Commerce market is growing with competitors such as Amazon taking the lead, while Target and Walmart soon optimizing their online store for a better buying experience. Also the problem of not being appealing to millennials which is a growing large segment is an important issue.
Decision facing the company: The decisions that the company must make is in order to exceed its customer experience, it must take on one out of three initiatives:
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Customers seek information on products prior to making a purchase and they expect a sales associate to be knowledgeable on the item that they are interested in. On a study it explained that a sales associate should be equipped with a mobile device to assist with a product information. To simplify for their millennial customers, the sales associate should be able to minimize the product selection and pick the ideal product for them. This would help Best Buy become preferred by customers when it comes product selections. Adding stores within Best Buy would also help aim to building relationships well known electronic brands and with increasing …show more content…
The company is a well established brand and one of the largest retailers in the electronics market. However, competitors such as Amazon, Target, and Walmart are becoming alternatives to customers with competitive low prices and multiple options to receive the product. Best Buy should complete the omnichannel experience in matching their physical retail with online and mobile shopping experience. Becoming a one-stop location that allows a customer to research, shop, and purchase at their convenience is ideal. Best Buy also faces the problem of not making millennials their main customer base and is experiencing transaction losses due to this target market’s perception of the brand as being high priced. The strategic initiatives are important in appealing to millenials and controlling their shopping
This merger will bring a wide array of products to a larger group of consumers. Currently consumers looking to buy home appliances like stoves or refrigerators have to go to a mall with a Sears store or a specialty store like Best Buy or Circuit City. Not all consumers live near a mall, so buying from Sears may not be an option. Although bot...
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
With the reputation of an online experience that includes an “erratic nature of delivery time makes us nervous when buying online with a hard deadline,” Kohl 's nearly begs customers to come in and try on the merchandise, then buy somewhere else. Obviously, as in the case with JCPenny and Sears, Kohl 's must follow Target 's lead and immediately overhaul its online shopping experience to lock consumers into both the in-store and online loop of consumption and purchase. While revamping an online platform sounds easy, it is, obviously a difficult task . But one that must happen if Kohl 's is to usurp the JCPenny and sears customers while competing with
With the passion for the latest and greatest technological knowledge, and the charisma and devotion towards the youth, Best Buy is sure to continue on the high road to success. Best Buy will be changing and advancing to accommodate the ever-changing field of technology. They are truly a testament to upholding and exceeding their vision statement of “meeting the customer at the intersection of technology and life” (FAQ).
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 80,000 employees and over 550 stores in the U.S., in addition to the brands Best Buy Canada, Future Shop and Magnolia Hi-Fi. Their leadership is led by Dick Schulze, Founder and Chairman, Brad Anderson, Vice Chairman and CEO, Al Lenzmeier, President and COO, and Darren Jackson, Executive Vice President of Finance and CFO. Chairman Dick Schulze founded Best Buy in 1966 with the Sound of Music, an audio component systems store in St. Paul, Minn. In 1973, Vice Chairman and CEO Brad Anderson joined Sound of Music as a salesperson. The company quickly expanded into video products and computers, was renamed Best Buy in 1983, and became a public company in 1985. Best Buy’s revenues for fiscal year 2003 were $20.9 billion and net earnings of $622 million. It was ranked number 91 on the Fortune 500 in 2003 (Bestbuy.com). Best Buy stores are redefining the way customers shop by offering an unparalleled assortment of affordable, easy-to-use entertainment and technology products and services available through its network of more than 550 retail stores in 48 states and online at BestBuy.com. Best Buy is scheduled to open 60 new stores in fiscal 2003 and is on track to have 650 stores by fiscal 2005. Magnolia Hi-Fi is a high-end electronics retailer specializing in audio and video solutions for homes, ...
Second, Best buy would renovate its exist stores in different branch based on the more catalogue of customer who living in(Best Buy, 2015). Therefor, some stores is especially designed for a group of customer like A, some became Customer B stores, C stores. For instance, a delicates service stores with exclusive salesman for IT geek like Customer A. If Customer B, a soccer fans buys a headphone, he or she only want to ease his or her demand to listen music instead of the brand. However, Best Buy not only focus on current profit, but also focus on customer group interaction- to analysis customer purchase behavior (Best Buy, 2015). Accordingly, Best Buy would effectively estimate the next purchase and product combination from customer based on this method. For example, normally, a customer will purchase DVD after she or he buys a DVD player but Best buy’s customer profitability analysis indicated that this kinds of customer also buys music accessories in second day after she or he buy DVD. Thus Best Buy would be able to send more relevant e-mail and special combination offer specific customer after customer purchaser behavior
Dollar Tree, Inc. describes itself as a business enterprise that is driven by the needs of its customers. The company aims at providing different items of value at the price of US$1 a piece. The running of the business of the Dollar Tree, Inc. variety store is anchored upon some tenets that define its mission. According to Dollar Tree (2016), the enterprise’s mission takes different dimensions. For instance, the company seeks to run its operations making some profits. It also seeks to strengthen its business partners to take advantage of the openings that come their way as well as the achievements and gains that the variety store realizes. Dollar Tree, Inc. also seeks to relate with its business partners, customers, and competitors in a truthful and thoughtful manner. The company further states that its mission is consistent with standards of monitored and cost-effective advancement (Dollar Tree, 2016).
The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales
Initially, the internet was not the primary focus, but Best Buy began to capitalize of the strengths of a 24-hour storefront. Customers browsed the site, then stopped in to “touch and feel” the products. The new value proposition evolved even more. Apparently, this new approach is working.
Target Corporation recognizes the importance of technology in reaching its customers. In 2011 the company launched a completely redesigned website that focuses on ease of use. Target also has an industry leading mobile application that allows the company to reach its customers regardless of where they are located. In fact, Mobile Commerce Daily named Target the “2010 Mobile Retailer of the Year” (Target Corporation, 2011). It is in this sector that Target’s potential for growth is the highe...
Among the most important factors driving employee retention are opportunities to develop and advance in their careers. Therefore, Whole Foods Markets shall focus on offering more opportunities to these young employees to further their experiences by giving them changes in developing their skills and learn new ones. There are many ways to do this such as offering a workshop and courses to employees, sending them to industry conferences or even bringing expertise into your company for an engaging lunch-and-learn on niche topics like business networking. Since millennial generation is also known as a generation that easily triggered over any challenges, Whole Foods Markets should take this opportunity to challenge them with difficult and interesting projects. As long as it is not too far outside of their skill set and you give the support needed to complete them, it will be a positive learning experience.
The brilliance of My Macy’s strategy that pay attention to the needs of local population not only speak to the large and steady increase of different ethnicities, but it is also focusing on a social concept that will give the sense of confidant to customers that Macy’s is respecting the local community and acknowledge their needs enveloped in the style and elegance of Macy’s. To concrete the success of Macy’s goal in launching this concept, Macy’s managers needs to be products, savvy and involved in the community through constant communications with the local customers frequenting the stores and encourage associates to develop the element of clientele with customers to insure that the local customers understand that Macy’s is committed to their needs and welcomes their inputs of items they love to see and shop for at Macy’s. The associates at Macy’s must play a greater role in delivering the message of customers’ needs and concerns of customers to management since they are at the front line and the number one point of contact with the customers. Developing an aware associate who is adapting personally to the idea of My Macy’s and communicating the corporate message to the local customers that Macy’s in your neighborhood to fulfill the community’s needs; this can only be accomplished by providing the necessary training of associates to appropriately prop for those needs and develop the necessary rapport to fulfill the important role they play in My Macy’s concept. It is important to complete the bridge between the local population and Macy’s through knowledgeable sales and customer service
Few companies create such controversy as Walmart has done with its approach to maintaining low costs for everyday items. People either love Walmart because of this approach to keeping prices down or hate it due to the effects it has on the economy. There are a lot of arguments surrounding the minimum wage and employee rights at Walmart. There seems to always be a news article about some employee protest about the wages or how they are treated. Walmart is viewed as an enormous firm that does not take care of its employees because of its minimum wage, treatment of its employees, and how it deals with lawsuits.
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 satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.
Thau was inspired by the Bashar Nejdawi, president of Ingram Micro Mobility that is a provider of technology and supply chain services. According to Nejdawi, “In five years, consumer electronics stores as we know them today won’t even exist, and the same rings true for our favorite apparel brands”. He also asserts that three influential factors will change the retail landscape: instant gratification, borrowing and customization. A good example of instant gratification is Uber or Amazon. The Uber customer can see in real time where the Uber car is and when is going to arrive. In the same way the Amazon provide fulfillment program that allow retailers to sell products that are not physically in storage. In this way the retailers do not have to care about inventory and can concentrate on marketing. Secondly, the borrowing culture is going to grow. As an example is Zip Car or Netflix applications. On the Zip Car program someone can borrow a car just for few hours. Likewise, some business offer a mobile device rental program that allow a customer to lease the latest device for a fraction of the cost. Further, the customization program permits customers to choose their preferences before the product is being made. As an example is miAdidas company that gives to the clients the possibility to create