Example Of Case Study On Best Buy Analysis,Revenue Generation
WebMar 15, · Best Buy Co., Inc Analysis Introduction Best Buy is an accredited consumer electronics retailer. The company has a strong presence all over the world. WebStrategic Analysis Of Best Buy Case Study Length: 17 pages Sources: 5 Subject: Business Type: Case Study Paper: # Related Topics: Board Of Directors, WebFeb 28, · Overview: Best Buy, currently fighting to be the number one consumer electronics retailer title in the United States, began quite humbly indeed. The company WebJan 12, · Best Buy Co., Inc. is a retail business enterprise that deals in consumer electronics. In addition, the stocks of Best Buy Co. are traded within the New York WebFeb 27, · Chart two showing VRIO capability analysis for Best Buy Corporation The VRIO framework is a strategic management tool that is used by firms to attain a ... read more
This trend mixes with sociocultural trends and offers consumers convenience and a better shopping experience. This is relevant to Best Buy because it allows more ways to reach customers. Trends in the sociocultural segment are another area that will have an impact on Best Buy through its general environment. One of the biggest trends in this segment is convenience. Best Buy does its best to make stores convenient with a variety of displays, Geek Squad on hand, and a friendly environment. Best Buy has increased convenience by offering products online for customers who prefer to stay out of the brick-and-mortar store. Best Buy focuses on these efforts by offering free shipping and by developing the Best Buy Marketplace, which will increase the variety and brands accessible to consumers.
Another change in the attitude of consumers is the trend of aspirationalism. People today have a heightened sense of aspiration and have many goals they hope to accomplish. As a result consumers expect companies to meet all of their expectations as fast as possible. To keep up with expectations and competition, Best Buy must provide the latest technology and equipment to customer whenever they need it. Many companies are looking to expand to overseas markets due to the potential growth in markets such as China, and India. In fact, according to Forbes. Best Buy has made a strategic decision to invest in China with their growth initiative, where they hope to open approximately 50 stores and implement Best Buy Mobile store-within-a-store concept in Consumers are now more aware of their carbon footprints and against companies who fail to be eco-friendly.
One thing that retailers like Best Buy are doing to be eco-friendly is reducing the size of packaging. Recyclable paper is now one of the main packaging ingredients for retailers like Best Buy. Industry Analysis. Best Buy is in the retailing Radio, Television, Consumer Electronics, and Music Stores industry , which sell household appliances, home entertainment devices and electronic products. In this industry, these retailers typically sell new products from manufacturers and wholesalers and often offer repair services for their products. Best Buy their services are their Geek Squad division. Over the last five years, the industry revenue has dropped an average rate of 5.
This decrease is also expected to continue to decline another 2. But in the years leading up to the forecasts state that with the continuingly recovering economy revenue for this industry will also slowly crawl up at an average of 1. In the Radio, Television, Consumer Electronics, and Music Stores industry, the threat of new entrants is low due to the fact that there are many barriers to entry. The biggest barrier is the large amount of competitors in this industry and similar industries. The leading competitors are online retailers like Amazon, discount stores like Wal-Mart, appliance retailers like Lowes. With Best Buy holding Another barrier to entry is that it requires a lot of startup capital to purchase all of the merchandise that is needed to compete with Best Buy.
The threat of substitute products is low because Best Buy has close relationships with manufacturers and wholesalers of many prominent brands that will usually keep Best Buy ahead of the game by receiving the newest products from the hottest brands. There is also not many substitute products that are available that the consumer would be interested in purchasing. The ability the consumer has to go anywhere from online, to discount stores, to other electronic retailers makes the bargaining power of the buyer to be extremely high. Customers are now able to find the best products at the best prices online or are able to do price matching Bargaining power of suppliers is extremely high because Best Buy buys most of its merchandise from Sony, Samsung and LG, etc.
This gives these organizations the upper hand and the ability to determine the price at which to sell its products to Best Buy. Best Buy essentially is forced to pay any amount that these large organizations think is appropriate based on the demand of the products at any given time. The competition among retailers in the consumer electronic industry is high with Wal-Mart being the frontrunner in the competition. The mere size of stores like Wal-Mart and Costco has made competition fierce for Best Buy because it is nearly impossible for them to keep up the quantity of goods that are available at the super size discount stores. Amazon is another extraordinary threat to Best Buy, as well as to the industry as a whole, because Amazon enables the consumer to view a larger range of products online at time that is convenient for them.
Home improvement stores like Lowes and Home Depot have also drawn many customers to them with their elite selection of household appliances like dishwashers, stoves, and refrigerators. This was only a little over three short years after he came to the position in June Hubert Joly, a French businessman, took over the position of CEO on August 17, Richard Schulze, who created Best Buy and sat as chairman of the board of directors, also resigned in June , and Hatim A. Tyabji was his replacement. Hubert Joly, as the new CEO, had many problems to solve when he came to the position. Top management attributes this sharp decline in income to a lower gross profit rate, higher sales, general, and administrative expenses, and lower revenues.
million, down 4. Best Buy announced in that it planned to close 50 superstores and lay off hundreds of employees. In order to create value that its competitors cannot easily provide, Best Buy also offers services that include installation, maintenance, technical support, and subscriptions for mobile phone and internet services. In , Best Buy acquired Geek Squad, a well-known computer repair service. Now, when customers buy a computer from Best Buy, they have the option to also purchase coverage from Geek Squad at a relatively low price. The sales associates ask customers a series of questions to get to know their unique needs and are therefore able to find the product that best suits them. This superior customer service and technical support is a core competency of Best Buy because it provides extra value for the customer, it is rare that a company can provide the variety of products Best Buy offers as well as expertise to handle issues with all of them, it is very difficult to imitate because of the high costs associated with training and compensation, and the experience of providing customer service face to face is not easily substituted.
Many people expected Best Buy to see the same fate as its previous competitor, Circuit City, who had closed all of its stores in January after declaring bankruptcy. Joly, however, has made efforts to turn around the strategy of Best Buy by lowering costs, improving customer service, and decreasing store sizes in order to help Best Buy remain competitive in its industry. Identification of external opportunities and threats Best Buy has many opportunities that must be recognized before their window of opportunity expires. Proper external analyses are essential in running, and maintaining a sustainable business.
There are four key components to external analyses. These include scanning, monitoring, forecasting, and assessing. When a company like Best Buy participates in scanning they are attempting to anticipate changes in the general environment and recognize changes that are already occurring. They then monitor those changes to see if relevant trends can be identified. Forecasting will be a challenge to Best Buy because of rapid changes in technology. It is nearly impossible to predict what will happen in the future because Best Buy is unaware of the type of resources they will have at their disposal.
Once Best Buy has taken the first three steps it is important that they assess the information, so that they can interpret the data and use it in a competitive manner. After Best Buy does an in depth external analyses they will realize their opportunities include growing the services offered to customers, expanding its mobile services, and growing internationally. If Best Buy grows its services offered to customers it could potentially create value through increasing in store traffic and online purchasing. Expanding mobile services is a highly attractive opportunity for Best Buy. SWOT analysis is one of the strategic management tools that enterprises use in order to understand their strengths, weaknesses, opportunities, and threats. Through SWOT analysis it becomes very easy for a firm to understand how to use the strengths and opportunities to overcome the weaknesses and threats for the purposes of achieving their set objectives and targets.
Indisputably, Best Buy Company is regarded as the largest firm selling consumer electronics in USA and other countries such as Mexico, Turkey, and the UK. Market positioning is an important strategy in ensuring that consumers are able to obtain the required goods. In addition, Best Buy Company has an extensive network of outlets and subsidiaries, which make the firm able to access many consumers within a shorter period Kwok, Dornbach-Bender, and Lange. The strong network of stores enables the firm to continue enjoying economies of scale hence further positive performance. According to Gulati, Best Buy Company operates a profitable business that has the capability and potential of growing. Increased growth rates, profitability, as well as the extensive involvement of the community are some of the strengths that Best Buy Company enjoys.
Such alliances enable healthy relationships for business performance. Despite being ranked amongst the best firms in the US based on its strengths, Best Buy Company has some specific weaknesses. The weaknesses include limited suppliers of consumer electronics, increased lawsuits, and insufficient geographic concentration. continues to over-rely on few suppliers hence subjecting the firm to serious consequences Gulati. In a different perspective, Best Buy Co. does not have any long term contracts besides the fact that there are many lawsuits that have so far been filed by some consumers and other competitors Kwok, Dornbach-Bender, and Lange. For instance, some consumers charged the firm with an offence of hiding warranty details. Hence, Best Buy Co. continues to experience various forms of weaknesses.
Many opportunities exist within the consumer electronics market. has opportunities for making significant mergers and acquisitions. Through mergers and acquisitions, Best Buy Co. can grow and expand exponentially. Amazingly, over the past years Best Buy Co has been able to acquire more companies. In addition, strategic opportunities will enable Best Buy Co. to enter into new markets, create new products, and enhance their company names Gulati. Another opportunity that Best Buy Co. has is opening up opportunities in other countries through globalization. Even though the consumer electronics market provides many opportunities, there are threats that Best Buy Co. Case Study on Best Buy Co.. Click here for more help with APA citations. June 25, Click here for more help with CMS citations.
Click here for more help with Turabian citations. Ultius is the trusted provider of content solutions and matches customers with highly qualified writers for sample writing, academic editing, and business writing. Ultius is the trusted provider of content solutions for consumers around the world. You read that right —We're giving away free scholarship money! Our next drawing will be held soon. Apply today for your chance to win! Claim Offer. Made in USA Live Chat Chat with us. More options ALISA Chatbot Messenger Live Chat specialist. Writing Editing Get your existing paper edited improved by a seasoned professional. See services Business Business document preparation services for helping you get a job. See services Admissions New Get into your dream school with a personalized application essay.
See services. Custom writing from scratch. Completely original—just for you. College essay Research paper Capstone project Dissertation Thesis More services. More info Learn more about us Blog Future writers Explore further. Essay Writing Samples. Case Study on Best Buy Co. Select network. html Copy. MLA Style APA Style Chicago Style Turabian. Copied to clipboard Click here for more help with MLA citations. Copied to clipboard Click here for more help with APA citations. Copied to clipboard Click here for more help with CMS citations. Copied to clipboard Click here for more help with Turabian citations. Rate this blog entry:. Tags analytics Best Buy business development electronics sample case study technology. Author Ultius. View author's profile Show more posts from author.
Tested Daily Click to Verify.
Thanks for stopping. In , Best Buy successfully launched its online store. Through acquisitions of Napster, electronic sellers, and home appliances suppliers, Best Buy was able to grow and gain the resources necessary for its international expansion. By using backwards vertical integration, Best Buy was able to broaden their scope and have bigger economies of scale, achieving savings that were passed along to our customers. Related diversification has also allowed Best Buy to maintain revenues, even through the recent economic recession. Order custom essay Best Buy Case Analysis with free plagiarism report. In September , Best Buy was named to the Dow Jones Sustainability index for corporate citizenship and philanthropy, social reporting, stakeholder engagement and operational eco-efficiency.
The company is losing market share to online retailers, such as Amazon, and to its primary suppliers, including Apple, HP, and Dell. In order to stay ahead of competitors in terms of market share and sales Best Buy has implemented a permanent price matching policy that was launched during the holiday season. This tactical move will help Best Buy retain its existing market share, but maintaining costs low enough to support this pricing strategy might be difficult for the showroom giant. The goal of this analysis is to help find which of these segments will have the most impact on Best Buy over the next few years.
Based on research and data we believe the segments that will be the most relevant to Best Buy are the demographic, technology, sociocultural, and global segments. Demographically, the United States population is getting larger, older, and more ethnically diverse. There are approximately ,, people in the United States, making it the third largest country in the world. An influencing factor in the population increase is that Americans are living longer. Due to advances in healthcare, people are living and contributing to society longer. Baby boomers, the biggest segment the U. The United States continues to move up the list as one of the most racially and ethnically diverse countries in the world. The prevailing trend is the significant increase in the Hipic population, stronger in the next few years.
This growth is caused by immigration; more Hipics are coming to the United States seeking refuge, jobs, or a better life for their family. As the population continues to change, Best Buy must find ways to cater to all generations, and avoid dependency on demographics and traditional marketing. They must target specific market segments and foresee the needs and wants of different generations through relevant and integrated marketing promotions. Specific targeting of customers will help Best Buy retain customers and create company loyalty. Technology is another segment that will have a major impact on Best Buy in the near future. Knowing your customers is a critical part to any industry, and predictive analysis is becoming one of the best ways to accomplish that objective.
A core competency of both Amazon and Netflix predictive analysis; based on previous purchases or views Amazon and Netflix can recommend items that the customers may be interested in, and the customer can give feedback about those recommendations. Predictive analysis is becoming more prevalent online, and to stay competitive, pure brick-and-mortar companies must follow suit. Best Buy uses predictive analysis through reward programs and by analyzing consumer purchases. Customers are now turning to social media to get information about companies and their products. Best Buy can take advantage of these statistics to improve their strategic competitiveness by targeting champions to test new products and promotions and diffuse the findings through social media.
Multichannel retailing is also becoming one the more relevant trends in the general environment. Consumers today have more options of purchasing points than ever before. With the latest technology, consumers can order a shirt using their cell phone, computer, tablet, or the retail store. This trend mixes with sociocultural trends and offers consumers convenience and a better shopping experience. This is relevant to Best Buy because it allows more ways to reach customers. Trends in the sociocultural segment are another area that will have an impact on Best Buy through its general environment.
One of the biggest trends in this segment is convenience. Best Buy does its best to make stores convenient with a variety of displays, Geek Squad on hand, and a friendly environment. Best Buy has increased convenience by offering products online for customers who prefer to stay out of the brick-and-mortar store. Best Buy focuses on these efforts by offering free shipping and by developing the Best Buy Marketplace, which will increase the variety and brands accessible to consumers. Another change in the attitude of consumers is the trend of aspirationalism. People today have a heightened sense of aspiration and have many goals they hope to accomplish.
As a result consumers expect companies to meet all of their expectations as fast as possible. To keep up with expectations and competition, Best Buy must provide the latest technology and equipment to customer whenever they need it. Many companies are looking to expand to overseas markets due to the potential growth in markets such as China, and India. In fact, according to Forbes. Best Buy has made a strategic decision to invest in China with their growth initiative, where they hope to open approximately 50 stores and implement Best Buy Mobile store-within-a-store concept in Consumers are now more aware of their carbon footprints and against companies who fail to be eco-friendly.
One thing that retailers like Best Buy are doing to be eco-friendly is reducing the size of packaging. Recyclable paper is now one of the main packaging ingredients for retailers like Best Buy. Industry Analysis. Best Buy is in the retailing Radio, Television, Consumer Electronics, and Music Stores industry , which sell household appliances, home entertainment devices and electronic products. In this industry, these retailers typically sell new products from manufacturers and wholesalers and often offer repair services for their products. Best Buy their services are their Geek Squad division.
Over the last five years, the industry revenue has dropped an average rate of 5. This decrease is also expected to continue to decline another 2. But in the years leading up to the forecasts state that with the continuingly recovering economy revenue for this industry will also slowly crawl up at an average of 1. In the Radio, Television, Consumer Electronics, and Music Stores industry, the threat of new entrants is low due to the fact that there are many barriers to entry. The biggest barrier is the large amount of competitors in this industry and similar industries. The leading competitors are online retailers like Amazon, discount stores like Wal-Mart, appliance retailers like Lowes. With Best Buy holding Another barrier to entry is that it requires a lot of startup capital to purchase all of the merchandise that is needed to compete with Best Buy.
The threat of substitute products is low because Best Buy has close relationships with manufacturers and wholesalers of many prominent brands that will usually keep Best Buy ahead of the game by receiving the newest products from the hottest brands. There is also not many substitute products that are available that the consumer would be interested in purchasing. The ability the consumer has to go anywhere from online, to discount stores, to other electronic retailers makes the bargaining power of the buyer to be extremely high. Customers are now able to find the best products at the best prices online or are able to do price matching Bargaining power of suppliers is extremely high because Best Buy buys most of its merchandise from Sony, Samsung and LG, etc.
This gives these organizations the upper hand and the ability to determine the price at which to sell its products to Best Buy. Best Buy essentially is forced to pay any amount that these large organizations think is appropriate based on the demand of the products at any given time. The competition among retailers in the consumer electronic industry is high with Wal-Mart being the frontrunner in the competition. The mere size of stores like Wal-Mart and Costco has made competition fierce for Best Buy because it is nearly impossible for them to keep up the quantity of goods that are available at the super size discount stores. Amazon is another extraordinary threat to Best Buy, as well as to the industry as a whole, because Amazon enables the consumer to view a larger range of products online at time that is convenient for them.
Home improvement stores like Lowes and Home Depot have also drawn many customers to them with their elite selection of household appliances like dishwashers, stoves, and refrigerators. This was only a little over three short years after he came to the position in June Hubert Joly, a French businessman, took over the position of CEO on August 17, Richard Schulze, who created Best Buy and sat as chairman of the board of directors, also resigned in June , and Hatim A. Tyabji was his replacement. Hubert Joly, as the new CEO, had many problems to solve when he came to the position.
Top management attributes this sharp decline in income to a lower gross profit rate, higher sales, general, and administrative expenses, and lower revenues. million, down 4. Best Buy announced in that it planned to close 50 superstores and lay off hundreds of employees. In order to create value that its competitors cannot easily provide, Best Buy also offers services that include installation, maintenance, technical support, and subscriptions for mobile phone and internet services. In , Best Buy acquired Geek Squad, a well-known computer repair service. Now, when customers buy a computer from Best Buy, they have the option to also purchase coverage from Geek Squad at a relatively low price.
The sales associates ask customers a series of questions to get to know their unique needs and are therefore able to find the product that best suits them. This superior customer service and technical support is a core competency of Best Buy because it provides extra value for the customer, it is rare that a company can provide the variety of products Best Buy offers as well as expertise to handle issues with all of them, it is very difficult to imitate because of the high costs associated with training and compensation, and the experience of providing customer service face to face is not easily substituted. Many people expected Best Buy to see the same fate as its previous competitor, Circuit City, who had closed all of its stores in January after declaring bankruptcy.
Joly, however, has made efforts to turn around the strategy of Best Buy by lowering costs, improving customer service, and decreasing store sizes in order to help Best Buy remain competitive in its industry. Identification of external opportunities and threats Best Buy has many opportunities that must be recognized before their window of opportunity expires. Proper external analyses are essential in running, and maintaining a sustainable business. There are four key components to external analyses. These include scanning, monitoring, forecasting, and assessing.
When a company like Best Buy participates in scanning they are attempting to anticipate changes in the general environment and recognize changes that are already occurring. They then monitor those changes to see if relevant trends can be identified. Forecasting will be a challenge to Best Buy because of rapid changes in technology. It is nearly impossible to predict what will happen in the future because Best Buy is unaware of the type of resources they will have at their disposal. Once Best Buy has taken the first three steps it is important that they assess the information, so that they can interpret the data and use it in a competitive manner. After Best Buy does an in depth external analyses they will realize their opportunities include growing the services offered to customers, expanding its mobile services, and growing internationally.
If Best Buy grows its services offered to customers it could potentially create value through increasing in store traffic and online purchasing. Expanding mobile services is a highly attractive opportunity for Best Buy.
Best Buy Company Comprehensive Audit Research Paper,Best Buy in 2012: A Snapshot
WebFeb 27, · Chart two showing VRIO capability analysis for Best Buy Corporation The VRIO framework is a strategic management tool that is used by firms to attain a WebJan 12, · Best Buy Co., Inc. is a retail business enterprise that deals in consumer electronics. In addition, the stocks of Best Buy Co. are traded within the New York WebStrategic Analysis Of Best Buy Case Study Length: 17 pages Sources: 5 Subject: Business Type: Case Study Paper: # Related Topics: Board Of Directors, WebMar 15, · Best Buy Co., Inc Analysis Introduction Best Buy is an accredited consumer electronics retailer. The company has a strong presence all over the world. WebFeb 28, · Overview: Best Buy, currently fighting to be the number one consumer electronics retailer title in the United States, began quite humbly indeed. The company ... read more
Joly had committed the company to a multi-channel strategy in North America and exited struggling international operations. Threats are posed by increased regulatory requirements regarding environmental impact of business operations, human resource management ,…. Learn more about Ultius scholarships. By using backwards vertical integration, Best Buy was able to broaden their scope and have bigger economies of scale, achieving savings that were passed along to our customers. Pages: 9.
For the COGS, valuation is done on the first in first out FIFO basis or using the average cost method, whichever is lower. Reference IvyPanda. Best Buy already has staff that has been trained for business to business selling. Lululemon 5 Strategic Analysis Words: Length: 3 Pages Topic: Business - Advertising Paper : I would recommend the purchase of Best Buy treasury bonds.
No comments:
Post a Comment