Business Case Study: Best Buy Company, Inc.

Best Buy is the largest consumer electronics retailer in the United States, accounting for 19% of the market. Globally, it operates in the United States, Canada, Mexico, China. Best Buy Company, Inc., North America’s largest retailer of consumer electronics and appliances today started back in 1966 when Dick Schulze co-opened a hi-fi store called Sound of Music in St. Paul, Minnesota. By 1981, Schulze had expanded his retail concept to nine stores, however competition was fierce and right away Schulze cut prices to accelerate sales and found that discounts increased demand and sales overall.

In 1985 Best Buy was listed in the NASDAQ stock exchange. This IPO was used to raise money for Best Buy’s growth. At this point BestBuy used Circuit cities

Another problem Best Buy was facing is their online sales could not surpass or even compete with Amazon’s online retailing services. Even though they included services that Amazon did not have. In addition, the economic downturn also put Best Buy in a financial stress situation. The key challenge for Best Buy is to determine the correct path to improve its differentiation strategy and competitive advantage.

Other Problems Facing Best Buy was poor management, leadership and employee morale. On August 2012 Best Buy appointed Hubert Joly as the new CEO. When Joly started working he immediately went to diagnose Best Buys problems one of these problems and solutions was to reshape his team and hire new leadership and to encourage current employees as well.

Best Buy is the most important consumer electronics retailer in the United States and well-known worldwide as well. When “Renew Blue” was launched by the new CEO and senior management. Best Buy noticed several factors that can provide alternative routes to increase sales, operating profit and focus its strategy in these key

Another good alternative might be working with vendor, suppliers and manufacturers of well known electronic consumer products such as Samsung, Apple, HP and Microsoft to provide better customer experience and variety of products lines. Another alternative Best Buy can tap on in their global expansion is to focus on the developing countries. Lastly Best Buy must provide user friendly and better e-commerce interface. By increasing the demand of their E-commerce platform and providing competitive pricing, Best Buy can increase its sales very rapidly.

Best Buy’s compensation structure for sales associates and applied a customer must change to reduce operating costs. It also should train of sales professionals, so they can better understand products and better assist customers. As a result, the company is widely recognized for its superior service. Best buy had the ability to adapt during various economic and market trends which is one of their advantages. Best Buy is recognized as a retailer and pioneer of