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
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
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
Nordstrom is one of the top retailers in the United States. With a solid brand image and a sound financial situation, Nordstrom is relentless in their expansion in the US, and are beginning to expand into international markets. Nordstrom takes pleasure in providing state of the art client support and having experienced sales people. In order to hold their position as the most successful high-end retailer in the United States, Nordstrom must continue to figure out ways to improve their brand image and customer satisfaction. Nordstrom’s current business working strategy is successful but I believe there are a few ideal solutions that the organization could apply to further enhance the organization. Due to the aggressive characteristics of the fashion retail store market, it is crucial that Nordstrom preserves an aggressive advantage providing the highest level of customer support as possible.
Additionally, brand equity, the company’s reputation, and Best Buy’s internet presence and website are also valuable intangible resources. In fact, the article mentioned that Best Buy has the 11th largest e-commerce website worldwide. Best Buy’s core competency lies within the company’s focus towards “customer-centricity attained thorough the in-depth data analysis and systematic customer segmentation.” To restate that, Best Buy differentiates themselves from their competition by providing expert advice and service at prices that compete with competition.
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...
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).
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.
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).
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, ...
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.
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.
The success of the company also improves the lives of our other important participants - our people, our business partners, our investors and the countries in which we work. As a basis for our vision, we strive to meet the performance criteria that we have identified in the following areas: • Financial indicators • Delivery to the client • Leading brands • Sustainability • Conservation and development of people •
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
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