SWOT Analysis Of Best Buy Co.

1038 Words3 Pages
bulb-icon

Recommended: Case study of best buy

Background Information History In 1966, Richard M Schulze, the founder and chairman of Best Buy Co., established Sound of Music, Inc. in St. Paul Minnesota. Focusing on home and car stereo systems, Sound of Music, Inc. reached approximately $170,000 at the first-year sales. After four years, Schulze proceeded to expand his retail chain. However, in 1981, Schulze realized that there were limitations and not much of a foreseeable future in only selling audio components. Then, he expended his offerings to include appliances and VCRs. The largest and most profitable Sound of Music store was hit by a tornado. Everything had been destroyed, but storeroom. Schulze came up a quick sale plan, “Tornado Sale”, to clear the damaged and excess stock. He …show more content…

uses differentiated business-level strategy by attracting customer through proving various and plentiful well-quality technology products. Moreover, the comfortable shipping environment and skilled salespeople can help Best Buy to deliver a good communication to customers. As Best Buy has been set up for over 20 years, it constructed a good and long relationship with customer loyalty, large customer base also retailer base. Thus, it is easier for Best Buy to maintain steady supplies. Besides, there are few weaknesses. Best Buy has a lot of large-scale physical retail store around the world. The operations cost must be enormous. However, the private online retail stores have less operation cost and factory overhead. Thus, online retail stores are more likely to provide lower price than Best Buy does. Due to this problem, Best Buy can do reasonable seasoning sales and provide better guarantee services than online retail shop to attract customer. Moreover, the large-scale store with multifarious products is relatively more difficult to find specific product than online shop or Retailers’ own brand store. Best Buy can launch quick search information software on tablets that provides customer where to find the product they are looking for. It can reduce the searching time in the

Show More
Related

  • Dollarama Financial Statement

    830 Words  | 2 Pages

    Introduction: Dollarama is a public retail company founded in the year 1992 by Larry Rossy. This company becomes well known all around Canada dealing in different consumer products. Now, Dollarama has its store in every province of Canada. It has multiple stores in Ontario only.

    Read More

  • Swot Analysis Of American Eagle Outfitters

    1987 Words  | 4 Pages

    American Eagle Outfitters (AEO) differentiates from its competitors because it’s a leading global specialty retailer offering latest trends that are high-quality and affordable. The source of competitive advantage is the quality of their clothes and their environmentally friendly fabrics. American Eagle Outfitters is a high-quality and inexpensive brand of their two competitors Aéropostal and Abercrombie and Fitch. AEO centers in every category of purchaser such as kids, tweens, teens, and adults. American Eagle Outfitters has further stores open globally and their product line is more assorted than its competitors and its name brand and logo is known world-wide.

    Read More

  • Consequences of Best Buy's Strategies

    1201 Words  | 3 Pages

    As seen in Exhibit F, Best Buy has 1,055 main locations that consist of their standard large format stores, and 406 Best Buy Mobile locations that focus on mobile device sales. To supply these locations, Best Buy has 23 distribution centers located throughout the country. Comparatively, Wal-Mart has 4,625 stores stocked by 158 strategically located distribution centers. This puts Wal-Mart at a huge advantage in a couple of ways. Not only is Wal-Mart much more likely to have a store nearby any given customer, they are also better equipped to keep its products in stock at all times. This means more customers visit, and due to stocking, more customers can make the purchase they want. On an international level, Wal-Mart also exceeds Best Buy’s few hundred stores with 6,308 stores in over 11 countries. This furthers Wal-Mart’s availability to customers and puts them at an advantage over Best Buy. Additionally, the increased scale of Wal-Mart’s retail and distributive operations make them extremely competitive on pricing, a major aspect of purchase decisions for high-ticket items like consumer electronics.

    Read More

  • Target Corporation Swot Analysis

    1685 Words  | 4 Pages

    The SWOT analysis: The study of the firm's Strengths, Weaknesses, Opportunities and Threats called SWOT analysis, a key step in flushing out known performance issues that are important to the growth of the organization addressed in the corporation strategic plan. The issues identified in the SWOT analysis help leadership to come up with a plan and strategy to achieve the overall mission of the company (Strategic Planning, n, d). Target Corporation is one of the largest public retailing company in the US having more than 1700 stores serving guests nationwide. Target group and its brand position are evaluated in the market using SWOT analysis.--

    Read More

  • Walmart Swot Analysis Paper

    842 Words  | 2 Pages

    Wal-Mart follows the everyday low prices “EDLP” strategy, which proved to be one of the most successful pricing strategies. Wal-Mart achieves that through an efficient supply chain management that tracks all goods from manufacturers to suppliers to end customers. LU, C. (2014)

    Read More

  • Swot Analysis Of Whole Foods Market

    1826 Words  | 4 Pages

    Whole Foods Market, which is in the Grocery Store and Health Food Store industry, is one of America’s most prominent organic grocery store on the market. The supermarket chain has established a competitive advantage amongst other grocery stores, as it assures consumers that all foods are free of preservative, additive, and pesticides. The grocery store has gained such a profitable following, that it Amazon acquired it in August 2017, boosting Whole Foods Market’s digital and physical competitive advantage. In fact, most researchers have concluded that such an acquisition may eliminate any opportunity for other grocery store chains to compete against Whole Foods Market (Formichelli, 2017). Whole Foods Market’s key to success

    Read More

  • Whole Foods Market Swot Analysis

    1231 Words  | 3 Pages

    Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930 when Michael Cullen opened the first store of the King Kullen supermarket chain, it was around that time after the big depression that the independent stores which at that time only offered dry groceries started to transition to the supermarket model, including groceries, produce, and

    Read More

  • Swot Analysis For Costco

    1751 Words  | 4 Pages

    Control systems – Costco has an Enterprise Facility Information management system, each Costco is connected to corporate, the EFIM provides real-time information, management of control systems (like energy), and an inventory management system that allows suppliers to monitor their own stock levels at any Costco. The EFIM reduces costs related to energy consumption, maintenance, and contracted services

    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

  • Best Buy Co., Inc. Case Study: Richard M. Schulze

    1446 Words  | 3 Pages

    In order to compete they would have to be able to price match their products and provide the wide array of consumer services like Best Buy. With over 1,700 stores in the U.S. this allows the consumer easy store access with product and employee interaction of which manifest the loyal returning consumer. These factors in combination would entail a vast amount of working capital from the start along with experienced employees and therefore detouring new

    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

  • PricewaterhouseCoopers SWOT Analysis

    1046 Words  | 3 Pages

    SWOT analysis is a necessary tool for business that allows corporations to analyze where their strengths, weaknesses, opportunities and threats lie. The SWOT tool contains paramount information about the industry and helps the executives of the business make decisions that are necessary for the business’s survival and success.

    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

  • SWOT Analysis: Samsung Company

    1025 Words  | 3 Pages

    The company should make sure that they invest heavily on products that are unique and that pose greater opportunities to double in terms of sales, including the tablets. In addition, it should make sure that it maximizing the areas such as China that have proven to be beneficial in terms of sales (Luo, 2001). In neutralizing the threats, the company should work on producing unique products, that are highly effective and affordable.

    Read More

  • SWOT Analysis Of J. C. Penney

    2251 Words  | 5 Pages

    Founded by James Cash Penney in 1902, J.C. Penney is one of the largest apparel, domestic retailers with approximately one hundred thousand employees in over one thousand retail locations in the United States (JCPenney, n.d.b). The company was established on the Golden Rule (also the name of its first store) to treat others as one would like to be treated (JCPenney, n.d.b). Although the organization was founded as a small business in Kemmerer, Wyoming, J.C. Penney is currently a thirteen billion dollars publicly-traded corporation that is headquartered in Plano, Texas (JCPenney, n.d.b). Therefore, to better understand its growth, J.C. Penney’s strategy, marketing, finance, human resources, and operations have to be evaluated.

    Read More

More about SWOT Analysis Of Best Buy Co.

Open Document