Best Buy's Growing Market: Best Buy

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The E-commerce is an area that Best Buy can expand and explore since it’s a growing market. Growing markets such as the online marketplace, are more attractive than mature and declining markets, and for that reason Best Buy must keep investing on it, seeking a market growth, which has been happening in the past years. Each year, Best Buy is getting more percentage of sales through its online channel, which represents more than 10% of its total sales in a year. The online marketplace represents an opportunity for Best Buy, but at the same time it can be a threat as well. Consumers are becoming more of online shoppers as technology develops and more people have access to it. With the growth in online shopping, manufacturers have easier access …show more content…

Best Buy has a wide variety of merchandise in each of its categories, containing many brand options due to having good relationship with the most popular brands. The stores also have a deep assortment of merchandise, having many Stock Keeping Units within its categories, and an efficient merchandise management team, that makes sure products are available at the time customers want them. Within its merchandise assortment, Best Buy provides private-label products, through exclusive brands such as Insignia, Dynex, Rochetfish, Platinum and Modal, that fill different categories within the store and create a sustainable advantage over its competitors as well as creates customer …show more content…

Best Buy has been in the market for a long time, it is a well-known brand which has been in the market for a long time. For this reason, the company will not have any barrier of entry in any technology niche. On the other hand, Best Buy does not have the bargaining power of vendor’s competitive factor, because there are a lot of vendors controlling the merchandise. The technology market has a competitive rivalry, with different stores controlling different channels. This rivalry increases advertising expenses and other factors. The good thing about Best Buy is that they differ from the others because of their expertise and service. This is a very important aspect about Best Buy and it’s great for a store to be the best at something when in a competitive

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