Best Buy Strategy
Best Buy Current Strategy

Best Buy Co. Inc. is a global retailer that produces technology and entertainment products and services across the globe. The company incorporated in 1966 in the state of Minnesota and today it is operating in U.S., Europe, Canada, China and Mexico. Best Buy controls a collection of retail stores and websites under eleven brand names.

Target Market

Best Buy mostly targets the individual consumers, which Best Buy divides in to three main areas; rich suburban families, trend setting urban individuals and closely linked families of Middle America. Majority of the Best Buy's consumers are Americans; however, the international customers also made a good contribution to the revenue few years back.

Best Buy currently operating in four continents provides following range of products and services:

Consumer electronics: It is the largest product category providing audio equipments, television sets, audio players, DVD players etc.

Entertainment software: CDs, DVD movies, video game hardware…...

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References

As Best Buy Closes 50 Stores And Faces Threat of Junk Bond Status, Richard Schulze's Fortune

Shrinks...Again. Forbes site. Published 4 rth July 2012. Retrieved 4 rth August 2012.

 http://www.forbes.com/sites/erincarlyle/2012/04/07/as-best-buy-closes-50-stores-and-faces-threat-of-junk-bond-status-richard-schulzes-fortune-shrinks-again/ 

Brush, M. (2011). What's the problem at Best Buy? MSN Money. Published: 14 June 2011. Retrieved

est uy began its operations in 1966 by founder Richard M. Shulze. The company started its operations by a single radio shop called "The Sound of Music." y 1970, Sound of music was already successful and earning annual revenues exceeding one million dollars. The company was selling asa radio and Hi-Fi stereo and maintained a good status, until 1981 when a tornado hit one of the original stores. Tornodo damages its inventory. Inventory was sold from piles in the wrecked stores, it is known as the "Tornado sale," which became an annual event. Intrigued by the idea of selling things in a more non-traditional way, Shulze decided to change the company's name to est uy Co. And simply put product out on the shelf for customers to buy instead of behind a glass counter. This idea would find huge success and in a few decades time est uy Co. would…...

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Bibliography

Best Buy. (n.d.). Retrieved from Overview Best Buy Co, INC:  http://www.investors.bestbuy.com/phoenix.zhtml?c=83192&p=IROL-IRhome 

Cramer, M. organizational structure of best buy co.

Epstein, Z. (2012, march). BGR. Retrieved from Best Buy Post mixed quartely earnings:  http://www.bgr.com/2012/03/29/best-buy-posts-mixed-q4-earnings-plans-to-close-50-u-s-stores/ 

Holm, S.B. (2003). Luther Seminary. Retrieved from Luther seminary_story Magazine:  http://www.luthersem.edu/story/default.aspx?article_id=67&issue_id=10

Part II. The company is traded on the New York Stock Exchange, under the symbol BBY. Best Buy had its initial public offering (IPO) on Nasdaq in 1985 but migrated to the NYSE in 1987. A chart of the company's stock over the past four weeks is as follows:

Source: Yahoo! Finance (2013)

Short-term movements in share price are mostly relevant to day traders. Most investors hold the stock much more than four weeks. The stock has fluctuated in value over the short run largely because the broad market has done the same, albeit with less intensity, but with beta of 1.48 Best Buy is expected to be more volatile than the broad market.

Best Buy is neither a conglomerate, nor a subsidiary, nor a multinational enterprise nor a holding company. It is primarily a domestic corporation, with a few international subsidiaries. Three-quarters of its business is domestic. As noted, Best Buy does…...

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Works Cited:

Best Buy 2012 Annual Report. Retrieved May 9, 2013 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc3NjA1fENoaWxkSUQ9LTF8VHlwZT0z&t=1

BestBuy.com (2013). Investor relations. Best Buy. Retrieved May 9, 2013 from phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-irhome

MSN Moneycentral. (2013). Best Buy. Retrieved May 9, 2013 from  http://investing.money.msn.com/investments/stock-income-statement/?symbol=BBY 

Yahoo! Finance. (2013) Best Buy. Retrieved May 9, 2013 from  http://finance.yahoo.com/q/bc?s=BBY&t=1m&l=on&z=l&q=l&c=

Best Buy is a retailer of consumer electronics, operating with a multichannel platform in North America and China (Best Buy, 2013). In the fiscal year 2013, Best Buy lose $441 million on revenues of $45.1 billion. In the previous year, the company lost $1.4 billion on revenues of $46 billion and suffered a loss in FY2011 as well (2013 Best Buy Form 10KT).
Best Buy operates retail stores and an online store. The company has a large geographic scope covering all of the U.S., Caanda and Mexico, and the company has some store sin China as well. Best Buy's industry is highly ompetitive. There are many firms competing for this business. Offline, there is Costco, Game Stop and Wal-Mart among others. Online, most of these retailers have a presence, and there is also Amazon. In addition, many manufacturers have their own online retail operations. In addition to intense competition, the industry…...

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References

Best Buy (2013). Investor relations -- overview. Best Buy. Retrieved November 17, 2013 from http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-irhome

2013 Best Buy Form 10-KT. Retrieved November 17, 2013 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc3NjA1fENoaWxkSUQ9LTF8VHlwZT0z&t=1

eMarketer. (2013). Computing products and consumer electronics industry turns to mobile, social and video. eMarketer.com. Retrieved November 17, 2013 from  http://www.emarketer.com/Article/Computing-Products-Consumer-Electronics-Industry-Turns-Mobile-Social-Video/1010373 

Business Korea. (2013). Global electronics industry. Business Korea. Retrieved November 17, 2013 from http://www.businesskorea.co.kr/article/2197/global-electronics-industry-%E2%80%9C56-electronics-companies-besides-samsung-apple-are-serious

There is little reason to believe that the upside is going to be sufficiently high to place a "buy" rating on the stock.
Returns are likely to be either in line or below what the beta implies unless Best Buy is able to find new ways to grow. More likely, it will be subject to increased competition from its major competitors and will be forced to cut margins further in order to retain its current sales levels. Thus, there is little compelling about Best Buy stock but there are many reasons to be worried about its capacity for appreciation in the coming years. Given that, only a hold recommendation makes sense. Best Buy is a good company, with a strong name and a substantial market share, but it lacks the upside that other major retailers in its category have and for that reason as well as the ones listed above…...

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Works Cited:

Adegoke, Y. (2008). Best Buy to buy Napster for $121 million. Reuters. Retrieved November 30, 2010 from  http://www.reuters.com/article/idUSN1550308820080915 

Best Buy.com website, various pages. (2010). Retrieved November 30, 2010 from http://www.bestbuy.com

Best Buy Fiscal 2010 Form 10-K. Retrieved November 30, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDQ3NTB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

Jacobs, K. (2008). Best Buy profit below view on expenses, shares off. Reuters. Retrieved November 30, 2010 from  http://www.reuters.com/article/idUSWNAB134620080916

Best Buy Inc.
Stock Evaluation Analysis

Best Buy is the largest specialty retailer of consumer electronics in the U.S., selling a variety of brands of electronic devices such as TVs, home theater systems, cameras, appliances, computers, mobile phones, video games, software, and repair & installation services to consumers across the country under different store brands (Trefis, 2014). The company has over eleven hundred brick and mortar stores in the U.S. And also operates a click and mortar strategy, wherein it uses online channels as an effective way to boost store sales and allocates any sales made online, to its stores.

BestBuy.com is among the top ten retail websites in the United States and hase the number one customer loyalty program of its kind; there are more than a billion visitors to the BestBuy website and over six hundred million visits to the U.S. stores each year (Best Buy, N.d.). The company is known…...

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Works Cited

Best Buy. (N.d.). About Best Buy. Retrieved from Best Buy: http://www.bby.com/about-best-buy/

Hermes, E. (2013, April). Consumer Electronics Industry Outlook. Retrieved from Euler Hermes:  http://www.eulerhermes.us/economic-research/economic-publications/Documents/industry-outlook-consumer-electronics-april-2013.pdf 

Hoovers. (N.d.). Best Buy Co., Inc. Company Profile. Retrieved from Hoovers: http://www.hoovers.com/company-information/cs/company-profile.Best_Buy_Co_Inc.a37b085cc4ac62ce.html

Munarriz, R. (2014, January 16). 5 Reasons Why Best Buy is Going Down in 2014. Retrieved from Daily Finance:  http://www.dailyfinance.com/on/5-reasons-why-best-buy-is-going-down-in-2014/

But Best Buy needs to become moe fowad looking fo employing people who would keep a watchful eye on technology tends and infom the fim of possible changes. This would help Best Buy nip the changes in the bud and counteact them in the most effective manne.
The poblem with eplacing one item with anothe is that you neve know how good the othe item would sell. You have neve sold it befoe and lacked sound knowledge about its potential and demand in the maket. This can negatively affect any maket and can be a seious poblem fo any fim.

The issue with CompUSA is even gave. The company it seems is not willing to addess the poblems that ae staing it in the face. The fim has obviously lost its cham and appeal as the tech guus because thee ae othe points of sales that people have discoveed. Who would…...

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references. Its customer service continues to decline and no effort is being made to address this core problem. Again the problem is lack of effective cgange management. The company and its staff have lost motivation to do better when they feel that people are already more interested in purchasing online than through the store. But if that were really the case, all brick and mortar would have been long dead. CompUSA needs to work on its customer service seriously in order to restore people's faith in its sales staff.

com and do not have brick-and-mortar expenses like Best Buy. In the long-term, shifting to a service-based model that caters to more localized regional needs may be necessary, as the traditional 'low, low price' model of the company may cause profit margins to dwindle too low, as consumers have more comparative options and access to discount retailers.
CompUSA

Issue: Poor Customer Service

Like Best Buy, CompUSA is an electronics store. Thus, there is always a chance of dealing with a supersaturated market. ith computers, there tends to be a higher turnover than other items than in other technological markets, 18 months according to so-called 'Moore's Law' (Malhotra, 2007). Thus saturated demand may prove less of an issue, despite underperformance by Microsoft's new Vista operating system. But CompUSA has another problem -- poor customer service and customer relations. "Did I mention that some of the most tedious moments of my life have come when…...

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Works Cited

Comeau, Michael. (26 Jul 2006). "Best Buy may be a bargain." TheStreet.com Retrieved 2 Sept 2007 at  http://articles.moneycentral.msn.com/Investing/TheStreet/BestBuyMayBeABargain.aspx 

Mc Cracken, Harry. (28 Feb 2007). "CompUSA Implodes." PC World. Retrieved 2 Sept 2007 at http://blogs.pcworld.com/techlog/archives/003809.html

Malhotra, R. (13 Aug 2007). "Dark Days Ahead for Best Buy and Circuit City?"

The Motley Fool. Retrieved 2 Sept 2007 at  http://www.fool.com/investing/general/2007/08/13/dark-days-ahead-for-best-buy-and-circuit-city.aspx

Best Buy
ROWE Program at Best Buy

Best Buy has taken an organizational change for the improvement of its employees' competence. This paper will talk about Best Buy's culture, the ROWE program implemented and the resistance to the change as a result of the ROWE program. This paper will also talk about the stress that occurred and whether or not the organizational culture has helped with the change.

Describe the culture of Best Buy.

Best Buy's culture involves all chains of authority. Employee's from salary to hourly share responsibilities to satisfy their client needs. The company's culture has changed to a new flexible program to accommodate employee's personal life. Culture is defined as the shared and learned values, beliefs, and attitudes of its members (Slocum & Hellriegel, 2007). Best Buy also believes in satisfying employees who invest time in their job and make personal efforts to get the job completed. Unfortunately Best Buy wants…...

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"Without change there is no innovation, inspiration, or motivation for improvement. Those who commence change will have a better opportunity to manage the change that is predictable. ~William Pollard. Best Buy has enforced a plan with large potential. There are predictable to be some errors made because it is the company's first time with the ROWE program. The organization has and will experience some resistance. Best Buy has to meet the client's needs, without having employees actually in the office. The company can come resilient if the employees lack self-discipline.

Best Buy also can be concerned from an organizational point-of-view because employees have to be isolated from each other. That is a difficulty if you have employees that need assistance with getting the job completed by other co-workers. "There's less support and friendship when you are telecommuting. When you solve an ongoing business problem, there's nobody next door to turn to" (Robbins, 2008).

With the ROWE program the biggest benefit is not being restricted to an office. The employees have more flexibility with meeting outside the workplace. This could be a local bookstore such as Barnes & Nobles or a local park. This will manage with the ROWE program because it is centered on

Consumers' high level of interest in all these products and their build-to-order configurations also point to significant bargaining power of suppliers.
Suppliers of MP3 players, cell phones and convergence products also have a significant bargaining power relative to Best Buy and other retailers, and this is especially true of Apple with their series of iPods. MP3 as the market standard for music formats has correspondingly lead to significant bargaining power for Apple globally.

The bargaining power of PC manufacturers as they trim down and consolidate their distribution channels is another significant factor in the supplier mix for Best Buy, as they must keep HP, IBM, Toshiba, and other suppliers satisfied with the sell-through rates of their products through Best Buy stores.

Networking products companies including Cisco (Linksys) and NetGear have significant bargaining power as suppliers of home and business networking products. Their ability to define pricing, discounts, and promotions is based on…...

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References

AMR Research (2003) - Re-evaluate How Your Measure Your Channels' Performance. AMR Research. Boston, MA December 2, 2003.  http://www.lwcresearch.com/filesfordownloads/ReevaluateHowYouMeasureYourChannelDec2003.pdf 

Best Buy Shareholders Meeting (2006) - Presentation from the June 21st, 2006 Shareholder's Meeting. Downloaded from the Internet on July 6, 2006 from location:

http://library.corporate-ir.net/library/83/831/83192/items/202891/BBY-06212006-Annual-Meeting-FINAL.pdf

Columbus (2001) - Defining Your Direction In Guided Selling. AMR Research. November 1, 2001. Louis Columbus. Accessed from the Internet on July 7, 2006 at http://lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf

Purchasing and Supply Management at Best Buy Today Headquartered in Richfield, Minnesota and founded in 1966, Best Buy Co., Inc. (hereinafter alternatively “the company” or “Best Buy”) is a leading retailer in electronics and other consumer products that competes throughout North America and Mexico today. As of early 2019, Best Buy operated nearly 1,200 large format as well as 51 small-format retail stores (Company profile, 2019). Despite its success in growing its market share in its existing market, the company is faced with the same existential threats as other major retailers, including most especially e-commerce operators such as Amazon (Wack, 2017). The purpose of this paper is to provide a review of the relevant literature to develop an informed and timely discussion and explanation concerning Best Buy’s new competitive environment and an analysis concerning how Best Buy's purchasing and supply management strategies contribute to their competitive advantage. In addition, an examination…...

Introduction The target market for Best Buy is appliance and electronics consumers—people in the 18-35 year range, though the retailer does target older adults as well as “millennials” (ISU College of Business). Its main target is described as “highly engaged consumers who love technology” (WARC). In recent years, Best Buy has had to redefine itself and redefine its corporate strategy. In fact, it’s had to redefine everything—from its core products to its target market to its store concept. With the (foreseeable) rise of e-commerce, brick-and-mortar retailers have had to adapt or die—and many have died. Blockbuster, Toys ‘R’ Us, RadioShack are just a few of many that have fallen by the wayside. Best Buy appeared heading for a similar fate in 2012 when its share price hit a 21st century low for the company at $11.29. The company managed to bounce back in a big way (its stock currently trades at…...

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Works Cited

ISU College of Business. “Millennials as a Target Market for Best Buy.” ISU, 2017.

Lee, Thomas. “Best Buy Bets Big on Store-within-store Concepts.” StarTribune, 14 July 2013. http://www.startribune.com/best-buy-bets-big-on-store-within-store-concepts/215301161/

Plastow, Jason. “Best Buy Competitive Advantage.” Storify, 2012. https://storify.com/jasonplastow/best-buy-competitive-advantage

Shapiro, Richard. “Best Buy’s Competitive Strategy to Beat Amazon: Educate Consumers.” B2C, 2016. https://www.business2community.com/trends-news/best-buys-competitive-strategy-beat-amazon-educate-consumers-01600643

WARC. “Segmentation drives Best Buy’s strategy.” WARC, 2016. https://www.warc.com/newsandopinion/news/segmentation_drives_best_buys_strategy/37474

WVU. “What is IMC?” WVU, 2017. https://imc.wvu.edu/about/what-is-imc

https://business.illinoisstate.edu/bestbuy/millennials.shtml

Best Buy Case StudyGiven Best Buys internal and external environment, does the company have appropriate functional strategies? Explain for each function in the company.Functional strategies are usually a part of the overall corporate strategy that is prepared for the various functional areas in the organizational structure (Wheelen, Hunger, Hoffman, & Bamford, 2018). Best Buy does have appropriate function strategies, which are finance strategy, marketing strategy, operations strategy, and human resources strategy. The financial strategy for Best Buy aimed at increasing revenue. To increase revenue, the company had to undertake some acquisitions and this worked perfectly for the company. The financial strategy focuses on the capital structure of the company by choosing the kind of structure that the company would prefer. Enterprise asset management also falls under this strategy.The functional marketing strategy focuses on promotional techniques and their application (Wheelen et al., 2018). Pricing optimization, distribution problems, the structure of production,…...

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References

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy (15th ed.). Upper Saddle River, NJ: Prentice Hall.

"Bricks-and-mortar" vs. "clicks-and-mortar": An equilibrium analysis. " European Journal of Operational esearch 187.3 (2008): 671.
Bala Chakravarthy, Peter Lorange. "Continuous renewal, and how Best Buy did it. " Strategy & Leadership 35.6 (2007): 4-11.

Elizabeth Gibson, Andy Billings. "Best practices at Best Buy: a turnaround strategy " The Journal of Business Strategy 24.6 (2003): 10-16.

Erik Gruenwedel. "Best Buy Q4 Sales Grow, Profit Dips. " Home Media Magazine 30 Mar. 2009: 3.

James B. Kohnen "Big Change at Best Buy: Working Through Hypergrowth to Sustained Excellence." The Quality Management Journal 11.3 (2004): 69.

Bill Stopper. "Best Buy: Customer-Centric Innovation" H. Human esource Planning 29.3 (2006): 34-36

Greg Todd. "etailers Using Analytics are Outperforming ivals. " DM eview 18.6 (2008): 35.

Appendix

Table 1: Best Buy Income Statement Analysis

(2005 -- 2009)

2/28/2009

3/1/2008

3/3/2007

2/25/2006

2/26/2005

evenue

$45,015,000

$40,023,000

$35,934,000

$30,848,000

$27,433,000

Cost of goods sold

$34,017,000

$30,477,000

$27,165,000

$23,122,000

$20,938,000

Gross profit

$10,998,000

$9,546,000

$8,769,000

$7,726,000

$6,495,000

Selling, general & administrative expenses

$8,984,000

$7,385,000

$6,770,000

$6,082,000

$5,053,000

estructuring charges

$78,000

Goodwill & tradename impairment

$66,000

Operating income (loss)

$1,870,000

$2,161,000

$1,999,000

$1,644,000

$1,442,000

Investment income & other

$35,000

$129,000

Investment impairment

$111,000

Interest income

$142,000

$103,000

$45,000

Interest expense

$31,000

$30,000…...

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References

Fernando Bernstein, Jing-Sheng Song, Xiaona Zheng. "Bricks-and-mortar" vs. "clicks-and-mortar": An equilibrium analysis. " European Journal of Operational Research 187.3 (2008): 671.

Bala Chakravarthy, Peter Lorange. "Continuous renewal, and how Best Buy did it. " Strategy & Leadership 35.6 (2007): 4-11.

Elizabeth Gibson, Andy Billings. "Best practices at Best Buy: a turnaround strategy " The Journal of Business Strategy 24.6 (2003): 10-16.

Erik Gruenwedel. "Best Buy Q4 Sales Grow, Profit Dips. " Home Media Magazine 30 Mar. 2009: 3.

Another popular section seemed to be accessories for mobile devices, although this section seemed to be most popular with young people.
I noticed that a lot of shoppers physically examine the products prior to purchase. They read the back of video games and Blu-Rays, and they play with computers and cameras before they purchase. Yet, you cannot really do that much with either of those devices in comparison with how much you would use them in the real world. So there is only limited benefit in playing with those things before purchase. As a marketer, however, that people are willing to handle just about anything prior to purchase indicates that perhaps they like to see and feel things just to give them some comfort in their minds.

4. The idea that Best Buy is Amazon's showroom is hyperbole. Best Buy sells $50 billion a year, and almost all of that is…...