1. Describe the company’s internal environment.
Best Buy is reveling in its third consecutive year of growth in Domestic comparable sales and non-GAAP operating income and materially better earnings growth than originally expected.
It executed well against its three priorities: (1) build on its strong industry position and multi-channel capabilities to drive the existing business; (2) drive cost reduction and efficiencies; and (3) advance key initiatives to drive future growth and differentiation.
2. List all of the company’s external factors.
a. Rivalry/ Competition
b. Complements
c. Buyers Bargaining Power
d. Risk of Entry
e. Suppliers Bargaining Power
3. List the Company’s internal competitive advantages.
Best Buy believes their ability
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How does the company differentiate itself from its competitors?
Best Buy competitors are primarily multi-channel retailers, internet-based businesses, technology service providers, traditional store-based retailers and vendors and mobile network carriers, who offer their products and services directly to customers.
5. Identify which generic business strategies your company is employing. Do they align with its vision and mission?
It could be suggested that Best Buy utilized a differentiation business strategy by applying a customer-centric strategy with an orientation on specific customer needs and behaviors. Yes, the strategy aligns with its mission and vision designed previously around five pillars, but subsequently realigned in 2020 to incorporate only three as mentioned previously.
6. Where is your company on the industry’s life cycle?
Until Best Buy 2020 results and effectiveness have been measured, it’s premature or more accurately not possible at this point in time to determine since the company’s focus is to position itself to be able to accommodate the changes in technology to support its customer base.
7. Does your company have a cost-leadership position in this business? If so, identify which cost drivers it uses effectively to hold this
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What is your company’s approach to the market? Does it segment the market?
The company’s approach to the market was to develop strategies that clearly identified “angels” and “devils”. Best Buy identified four overarching segments that accounted for 90% of its customer base: Urban Trendsetters, Upscale Suburban, Empty Nesters, and Middle America. Stores were specifically configured to serve the needs of the customer segments in a given region.
9. Is your company vertically integrated? Explain.
No. Best buy purchases merchandise both domestically and internationally from a variety of retailers. In 2017, the company’s 20 largest suppliers accounted for approximately 77% of the merchandise it purchased, with five suppliers providing approximately 53% of total merchandise purchased.
10. Explain your company’s global strategy.
Best Buy’s global strategy is what could be considered macro in nature and is nested in its Best Buy 2020 campaign designed to replace its 2012 Renew Blue initiative. Of course this new strategy is customer based with a focus on clearly defining purpose, roles, and value proposition. As mentioned previously in Part 1 of this case study, the company emphasizes three growth
High quality ingredients, various things on menu, make the food right infront of you; handcrafted preparation
It is through following these statements that will bring a firm success in the future. However, external factors outside of a company’s control can negatively affect the expected targets and steer the company from their mission & vision. Most companies do not have direct influence on this kind of environment (Harrison & St. John, 2014). The following three sections will evaluate the external forces & trends for Dick’s Sporting Goods. The following also will elaborate on external factors from direct competitors that faces Dick’s Sporting Goods. I will conclude on what other threats Dick’s Sporting Goods can expect to see, and how they can place a buffer in between these factors to stay on track towards their mission &
(The retail industry main aspect includes small stores that sell products directly to consumers. Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.)
The company first needs to collect demographic and geographic information relevant to potential store location choices in order to segment its market. It is extremely important that the marketing team gather thorough information in order to ensure they are focusing efforts in areas where the company’s products will be best received. This will help them in achieving maximum sales.
b. They meet the needs of their target market by building their stores in closer proximity.
Specialty retailers cater to a narrow or niche audience – either by location, type of customer or product mix. On a national level, specialty retailing is dominated by national chains, such as office supply store Staples or electronics outlet Best Buy.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
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).
Macy 's strategy is to provide a "localized merchandise offering and shopping experience to targeted consumers" (Macy 's Inc., n.d.). Macy 's generates primary revenue through the sale
Strategic plan reviews the mission and vision of a company (Armajani 2012). For Best Buy, it aims at providing customers the latest devices and services at an attractive price at any time via multi-channel. And apart from just selling, it provides technical services and warranty of products in order to further improve customers’ experience to which the company highly valued (Best Buy 2014, p.25).
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, ...
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Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have a much greater financial ability to be able to invest more into advertising than a new business starting out would be able to. Shelf space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best shelf space. Consumers will see their products before noticing other, not so well known products.
3. WHAT HAS SEVEN-ELEVEN DONE IN ITS CHOICE OF FACILITY LOCATION, INVENTORY MANAGEMENT, TRANSPORTATION, AND INFORMATION INFRASTRUCTURE TO DEVELOP CAPABILITIES THAT SUPPORT ITS SUPPLY CHAIN STRATEGY IN JAPAN?