Best Buy in China

1258 Words3 Pages
bulb-icon

Recommended: Best buy best practices case study

Since the case was published, Best Buy has continued to be innovative and creative in building its relationships with its consumers. Per Best Buy’s website (2013), they have added a Windows store that allows customers to gain knowledge and test out Window devices. This shows their increased dedication to building the customer experience. Even with all the changes and dedication they have to their consumers, Best Buy has already closed the nine Best Buy stores that it set up in China (CNBC, 2011). However, Lee (2013) mentions that the CEO of Best Buy says it will keep its business in China under the Five Star brand.

Best Buy has a unique perspective on their business and technology because they pride themselves in educating customers. As Spenner and Freeman (2012) mentions, customers want simplicity and need to be able to make informed decisions. By educating customers about the products and teaching them how to use it, Best Buy could actually increase the chances of the customer buying the product because they are confident in it and Best Buy. This is how Best Buy practices business now. Building on this is the fact that employees are paid hourly instead of based on commission so the employees don’t have to make hard sales, which can be a negative for many customers. Centricity, Best Buy’s tailoring of their stores for targeted customers, is a great concept as well (Chandrasekhar, 2009). It allows the biggest profit generating customers to feel comfortable and encourages spending through a more relaxed environment.
As Chandrasekhar (2009) mentions, Best Buy controls its advertising at the corporate level. While this can be beneficial for consistency, this can limit their potential in markets if a local store or another nati...

... middle of paper ...

...hy Best Buy Failed in China. Retrieved from http://www.cnbc.com/id/41882157
Lee, T. (2013, August 2). Best Buy CEO Indicates Company Will Stay in China. Retrieved from http://www.startribune.com/business/218123261.html
Spenner, P., & Freeman, K. (2012). To Keep Your Customers, Keep It Simple. Harvard Business Review, 90(5), 108-114.
Chandrasekhar, R. (2009). Best Buy Inc.-Dual Branding in China.
Batra, R., Ahuvia, A., & Bagozzi, R. (2012). Brand Love. Journal of Marketing, 76(2), 1-16.
Magloff, L. (2013). The Advantages of Keeping an Existing Business Name. Retrieved from http://smallbusiness.chron.com/advantages-keeping-existing-business-name-22477.html
Warden, C. A., Stanworth, J., Chen, J. F., & Chi-Tsun Huang, S. (2012). Strangers in Strange Lands: Hypermarkets and Chinese Consumer Culture Misalignment. International Journal of Market Research, 54(6), 799-820.

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

  • Wal-Mart

    1714 Words  | 4 Pages

    Wal-mart is currently the world’s largest company. It has seen continuous growth and financial success since it was founded in 1962. Today it is living off of a previous reputation of solid ethical business practices that are no longer being exercised. Sam Walton, the founder of Wal-mart, was considered to be “freakishly cheap… Cost-cutting was an obsession in the Wal-mart culture… on business trips, everyone, including the boss, flew coach, and hotel rooms were always shared.” (reclaimdemocracy.org. 2006). This was only part of the reason for Sam Walton’s success.

    Read More

  • Consequences of Best Buy's Strategies

    1201 Words  | 3 Pages

    Best Buy is currently underperforming because of several circumstances. It is at a competitive disadvantage with some large firms such as Wal-Mart and Amazon in terms of supply-chain and distribution, which impacts the customer in terms of price-point. Additionally, Best Buy has been undergoing a strategic change of direction that focuses more on small specific stores, and less on the larger, broader operations for which they are currently known. Though this may bode well for the future, there have been financial consequences from this process.

    Read More

  • Research on Best Buy Co.

    3956 Words  | 8 Pages

    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).

    Read More

  • Organizational And Hr Management: Best Buy Case Study

    1394 Words  | 3 Pages

    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, ...

    Read More

  • China's Open Door Policy Essay

    3426 Words  | 7 Pages

    ...ing at both case studies, it can be seen that when foreign businesses try to enter a market like China, it is very important to study not only the culture norms of the consumers but also the business ethics of the country. By looking at Wal-Mart’s success it can be seen that because Wal-Mart has started changing its ways in approaching it consumers has lead it to being able to open more stores throughout China. Such as selling goods that are more common or need in a certain province than in others. While for Home Depot, the reason it was not successful was due to its approach to the Chinese consumers. Due to it already having its ideal of what kind of retailer it was, made it harder for them to cater towards the Chinese shoppers. This is partially due to the reasoning that Chinese consumer ethics and shopping styles are different of those here in the United States.

    Read More

  • Inventory Management System

    1788 Words  | 4 Pages

    ...line presence. Today, with 1500 stores of various formats and sizes and in multiple countries, Best Buy is moving quickly to once again position itself ahead of consumer demand and enhance the online and in-store shopping experiences. To achieve this Best Buy is working to build a system that connects all systems into one that is used across all of its locations.

    Read More

  • Integrated Marketing Communications (IMC) in the UK

    1730 Words  | 4 Pages

    Schultz, D.E., et al., 1994. The new marketing paradigm: integrated marketing communications. NTC Business Books, pp. 105-156.

    Read More

  • Impact Of Brand Image On Consumer Behaviour

    2117 Words  | 5 Pages

    Brand attitudes: it’s the consumer evaluation of brand .Keller (1993)another important impact distinctive Between 11 dimensions: product attributes, intangibles, customer benefits, price, use/ application, user, product class, celebrity, country of origin, competitors, and life style. Aaker’s and Keller’s show many topologies like price, user imagery, usage imagery, and product attributes I will identify some weakness , but it should be considered that how it’s possible to trap the content of consumer knowledge. Aaker (1991). "Sum of the total brand impression is called brand image (Herzog 1973), anything that is associated with brand (Newman 1957), and "the perception of the product" (Runyon and Stewart

    Read More

  • Compare And Contrast Apple And Apple Supply Chain

    1660 Words  | 4 Pages

    In comparison with Apple, Walmart uses a very expansive network of vendors to source all their types of different items. Apple’s key components are typically sourced from a single manufacturer and used across their whole product line. Apple’s devices are available only in a limited number of configurations, allowing the component sourcing to be managed and streamlined. Walmart’s vendor network supplies thousands of different products, making the supply chain larger and vendors more diverse. Walmart’s main controls are placed around cost, and while Apple is also cognizant of cost, they also have the capital to pay to ensure they receive high quality cost and

    Read More

  • KFC (Kentucky Fried Chicken) in China

    1110 Words  | 3 Pages

    Zhou, L. (2012). Cultural adaptation pattern analysis of McDonald’s and KFC in the Chinese market. Retrieved from http://www.diva-portal.org/smash/get/diva2:534795/FULLTEXT01.pdf

    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

  • What Is Brand Loyalty And Loyalty

    765 Words  | 2 Pages

    Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation of Two Critical Brand Equity Drivers, by C.Whan Park, Deborah J. MacInnis, Joseph Priester, Andreas B. Eisingerich, & Dawn Iacobucci ; Journal of Marketing Vol.74 (July 2010),104–121.

    Read More

  • Restaurant Management

    2839 Words  | 6 Pages

    Wasserman, Michael. 15 Techniques When Dealing With Customers. My Success Company.      25 January 2005. .

    Read More

  • The Buy Grid Model

    2011 Words  | 5 Pages

    Philip Kotler; Kevin Lane Keller (2009): “Marketing Management”, 13th edition, Pearson Prentice Hall, pg 61-62

    Read More

More about Best Buy in China

Open Document