Best Buy Essay

1165 Words3 Pages
bulb-icon

Recommended: Best buy inc case study

1. Problem identification:
The main problem Best Buy currently facing is falling stock prices. In short period of time from year 2011 to 2012 the price per stock went from $45 to $15. This was a drop of approximately 60% but not only the stock prices were going down but also Best Buy had been forced to report a 91% drop in profits in year 2011. Investors were worried about the situation of the company. Now, the main challenge in front of the Best Buy was to find a way to get out of this trap and make some profits so that stock prices goes up and investors are satisfied with the company. Personally, another major problem I think is Best Buy is not able to convert customer’s store visit into sales. Currently, only 1.3% of visited customer made sales at Best Buy.

2. Internal Analysis:
Strengths: Best Buy was well established brand in US consumer electronics market with 14% of market share. Best Buy has a big advantage of Big-Box stores around the World. These stores allowed customers to have a hands on experience before making any purchases. Specially, services like geek squad gave Best Buy a solid competitive advantage which was later on copied by other competitors like Target. Different platforms like mobile stores, kiosks and online website also …show more content…

These employees can go to competitors and make them stronger. All of the training and experience these employees had could be used against Best Buy in near future. Another strategic threat to Best Buy is getting stuck in middle if company tries to achieve both cost leadership and differentiation at this point of time. Also the growth pattern of Best Buy is mostly through the acquisition of the old companies in the industry. This can be dangerous step because Best Buy spent lot of money in acquisition in short amount of time. This can be expensive affair if these acquisitions don’t help to increase the revenues and profits in

Show More
Related

  • Best Buy Core Competencies

    924 Words  | 2 Pages

    BestBuy really needs to know the expectations of consumers to be able to align on the same distribution line than its competitors that continue to cut its market shares by offering the same products at very competitive prices. There is no doubt about the threat that may represent specially Wal-Mart for BestBuy, its "Every day low price" slogan speaks for itself. Today, quality’s problem is used as a marketing argument, but it’s not over true even though Walmart some low quality products. We have to notice that most of the producers of nowadays ’technologies are Asian countries as proof, IPhone and well-known brands technologies have always been manufactured in China. So the quality problem is not really the problem BestBuy is facing because there is no doubt that Wal-Mart and BestBuy have the same suppliers since everyone claims to offer high quality electronics. The first thing to do is to figure out how Walmart makes the difference by lowing its fixed and variables costs to better maximize profit even though offering low cost product. I think BestBuy needs to review its employees ‘training budget since they already have a good knowledge about the product they offer. As cited on page 22-4, even though its revenue grow, at the same time its net income and operating

    Read More

  • Dollar Tree Essay

    581 Words  | 2 Pages

    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).

    Read More

  • Dollar Tree Essay

    462 Words  | 1 Pages

    Today’s discount retail market has changed over the years, causing the industry to explode with competition. Companies like Wal-Mart, Target, K-Mart and Dollar Tree are fighting to be recognized by consumers as the business of choice for their shopping needs. Today, the discount market faces pressure of how they can stand out above their competition in order to provide consumers with a unique and unusual shopping experience. The Dollar Tree has worked over the years to differentiate their business model in a market that has become saturated with discount shopping centers.

    Read More

  • Case Study Happy Chips Inc

    852 Words  | 2 Pages

    was not pleasing their number one mass merchandise customer by having poor operating performances. With the company having frequent stock outs Buy 4 Less can’t provide their customers with the products they want which results in less sales. Customer service is a huge part of any business industry and if a company has poor customer service than that company is hard to deal with and business will decrease. Happy Chips, Inc. also had high prices, high prices makes the demand for their product to go down which means once again that sales will

    Read More

  • Sam Walton Essay

    677 Words  | 2 Pages

    Sam Walton was born in a common family in Kingfisher, Oklahoma. Walton opened the first WalMart in 1962, after continuous years in the retail management business. The discount chain expanded internationally over the next 30 years, expanding into the world’s largest company by 2010. Sam stepped down as CEO, and continuously remained active in the company. He graduated from Hickman high school and later entered the University of Mississippi. He created Walmart believed that leadership is done through service. His net worth is $100 Billion.

    Read More

  • Best Buy Marketing Strategy

    542 Words  | 2 Pages

    The process in which Best Buy supports its products is the assurance that they are there to offer a good product, with excellent product support. Between these two items Best Buy keeps the customer happy. Customers do not get stuck with an inferior product, and if their product does break Best Buy will take care of it in a prompt

    Read More

  • Best Buy Trade Secret Essay

    459 Words  | 1 Pages

    If a company is very successful it usually has some kind of trade secret that it relies on to repeat its success over and over again. Many companies have trade secrets that are over sixty years old, with some in excess of one-hundred years old! The judicial system realizes that these trade secrets are extremely valuable assets to these companies and that they rely on the secrecy of said trade secrets. In 2009 Best Buy was trying to devise its own trade secret with the help of a startup company, TechForward (Rao). TechForward, at the time, had recently developed a “Guaranteed Buyback Plan” that Best Buy caught wind of and wanted to make their own.

    Read More

  • Best Buy Core Competencies

    1234 Words  | 3 Pages

    The company’s extreme focus on customer service helps neutralize the threat competition. That combined with Best Buy’s other tangible and intangible resources and core competency increase the firms economic value creation. Best Buy has some resources and capabilities and are rare while others are not. Best Buy’s physical locations and acquisitions and upper management and employee knowledge are rare. Those resources create a competitive advantage for Best Buy.

    Read More

  • Zappos Essay

    535 Words  | 2 Pages

    Zappos is very popular with its 100 percent satisfaction guaranteed 365 days return policy. Zappos encourages customers to order a number of product they want and customers can return the items that is not satisfied with the product. Although it is difficult for small company to apply this, but most customers want the aptitude to send back the items that is not satisfied in a reasonable amount of time.

    Read More

  • Target Stores Essay

    559 Words  | 2 Pages

    Target stores, inc.is a sister company of Dayton Hudson Corporation and  started in the year 1962 the same year as two other large retail stores Wal-mart and Kmart. Target has always operated with the motto “ Expect More and Pay Less”  target is the third in the big three in U.S. falling behind Wal-Mart and Kmart.a major part of target's success comes from its ability to bundle bargain prices with fashionable name brand merchandise with excellent customer service. Dayton’s department store started looking into Target as a discount chain in the year of 1962 when the company saw a rising in public demand for lower priced merchandise in a family friendly and convenient environment. The name target along with the bulls eye logo were selected for the company's visual impact also to show that target aims at offering

    Read More

  • Target Retail Store Essay

    494 Words  | 1 Pages

    Target given superiority over other stores A retail store is certain to build superiority and make the most essential contribution in operation of its components with its staff in thousands having intention of pulling through a competition they have handed over as you can only be confident with Target for purchasing your items. There is a consistent demand that has crept up for getting superiority and make people confident to work their way out in competition. There are hundreds of branches that Target has in US and they are pushing through to make a change that was nowhere to be found a few decades ago. Target got its name in 2000.

    Read More

  • Amazon Essay

    1558 Words  | 4 Pages

    Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, serves consumers through its retail websites and focus on variety, price, and accessibility. The Company bids plans that enables sellers to sell their products on its Websites and their own branded Websites and to accomplish orders through them, and programs that allow authors, musicians, filmmakers, application creators, and others to publish and sell content. The Company operates in two segments: North America and International. The Company schemes its Websites to allow millions of products to be sold by the Company and by third parties across masses of product categories. Customers access its Websites directly and through its mobile Websites and apps. It also manufactures and vends Kindle devices. In May 2012, the Company attained Kiva Systems, Inc. (Kiva). In October 2013, Amazon.com Inc acquired TenMarks Education Inc. Effective February 5, 2014, Amazon.com Inc acquired Double Helix Games LLC.

    Read More

  • Purchasing Strategy Essay

    825 Words  | 2 Pages

    Purchasing Strategy Report Purchasing strategies are an important aspect of a business. Suppliers must fit the structure of your company in order for the partnership to be successful. Otherwise, there will be little to no room available for growth between purchaser and supplier—only discord and micromanagement in order to assure business is not disrupted. I think this is why it is so important to employ the services of more than one supplier. “Intense competitive pressures have forced companies to re-examine their approach to managing suppliers and their supply base.

    Read More

  • Walmart Essay

    893 Words  | 2 Pages

    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.

    Read More

  • Strategic and Operational Plan: Best Buy

    1715 Words  | 4 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 satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.

    Read More

More about Best Buy Essay

Open Document