BES TBUY COMPANY Introduction Best Buy Company is one of the leading companies in US and Canada dealing with the retailer of consumer electronics. The company has over 400 stores worldwide offering a wide variety of products worldwide, among the company’s major products include the following; mobile phones, gaming systems appliances, computers, televisions among other components and accessories.
However, the company has adopted a variety of strategies that sees it enter successfully into the competitive markets; for instance, it has developed a culture that promotes excellence customer services, minimized or no commission on some products, employing highly experienced and skilled staffs. These have seen the Best Buy company expand to many successful branches and increased production over some a good period of time.
Several opportunities including the economies of scales and global expansion are among the major areas of focus when carrying out an external analysis for the Best Buy Company, Online consumer shopping as a result of the current It technology, some government rules and regulation concerning taxation and control over extension of credit services to consumers and various strategies used by the competitors targeting the same market opportunities are among the major threats that this company experiences.
The company’s internal analysis has given the company more of the operation advantages, among the major ones include broad market coverage and a wide variety of product lines. However, the kind of weakness that the company faces under this section include the specific legal issues and sometimes the reduced product life in the market that sees the company experience low financial situations leading to high pricing pressure. The ollowing is the analysis of Best Buy Company basing on the case study provided: Current Situation The Best Buy company has recently developed several strategic resources that support it in competing with other competitors for survival, this has therefore led to its expansion resulting to the current increased trends in the supply of its products globally. The company has several locations ranging from within the nation to the global level. Its Internal systems have greatly helped it by easing the movement of products from its various stores to the customers’ hands.
Best Buy Competitive Advantage
Competitive advantage is the favorable position an organization enjoys in relation to its competitors. This can be due to a variety of factors, including price, quality, availability, and reputation.
Competitive advantage is important for any business, but it is especially important for a retailer like Best Buy. The company’s competitive advantage comes from its focus on providing an exceptional customer experience. Best Buy offers competitive prices and expert advice, and the company’s advertising and promotion efforts are effective in driving awareness and traffic. As a result, Best Buy is one of the most successful electronics retailers in the world.
Best Buy has a competitive advantage because it is able to offer consumers a one-stop shop for all their electronics needs. The company also has a strong online presence and is able to offer products and services that are not available at other retailers. Additionally, Best Buy offers great customer service and has a loyalty program that encourages repeat business.
This has enabled the company to earn a great competitive advantage over other companies in the current despite some industrial forces acting as drawbacks towards its development. Despite all these efforts, the analysis indicates that the company is in the process of decline due to the strong forces within the industry including the pressure on product pricing which have caused a negative impact on their product trend since 2008 when the company outdid other competitors like CompUSA and the Circuit City Co.
Past Performance of the company Basing on the analysis provided, the Best Buy Company has had the best performance in 2008 whereby it led to the closer of other companies dealing with the same products in the USA. The store development and format were a special strategy that saw the company record best performance in the past than other nations, this saw the company grow to the largest extent where it expanded its supplies to nations like Europe, Canada, and China.
Strategic Posture Mission; The company’s mission/ vision is a development of a growth company that is focused on solving the unmet needs of its customers, the company management attributes these to its employees in solving them adequately. Objectives > Focusing on the improvement of profitability across the whole organization. > Enhancing the multi-channel customer experience > Driving down cost of goods sold through supply chain efficiencies > Reducing selling, general and administrative costs.
The company’s strategic plan The strategic plan of Buy Best Company is mainly to increase the revenue in order to make it the best brand and Centre for technological products and services. Among the strategic plan objectives which were named the Blue strategy included the following; > working in partnership with other dealers to come up with new ideas and drive value > Renewing the customers experience, inspire leaders and employees in the company Increasing returns and on the invested capital boosts the leadership role of the company. Policies
The policy adopted by the company to attract many of its customers is mainly the Price matching policy that was implemented in order to allow the company remains competitive; this was probably attained by the company offering the same price to commodities as that of the retail store. Corporate Governance Corporative governance generally involves the distribution of responsibilities among different stakeholders in an organization. This has been achieved as follows. Board of Directors The president is the head of the Boards of director who the mandate to appoint the chairman and the members of the public policy committee.
The Public Policy Committee is composed of independent directors that meet four or more times in the year. Top Management Top management includes the Mr. Hubert Joly who became the president and chief executive officer. External Environment The external environment includes the outside countries that BestBuy Company supplies its electronic products; other factors may include the relationship between the company and its contract consumer manufacturers like China and Southeast Asia. External factors, therefore, can pose threats to the US BestBuy company when not well handled.
Natural Environment The company is to struggle towards addressing and minimizing on the global challenges, the efforts put forward to solve these are environmentally related, that is, the company is reducing o its carbon emission from the operation reduction and renewable sources. The energy star certified products from the company will help minimize the amount of carbon emissions. The carbon emission from the industries is the main cause of the droughts, storms, and wildfires that interfere with the natural environment, mainly the wildlife habitats.
All these contributes to the climate changes, therefore, carbon dioxide reduction strategies by the BestBuy company makes a creates a good business reputation for the company. Societal Environment Economic Among economic issues that affect the societal environment of the BestBuy Company include the intense competition to construct margin, the positive outlook towards the consumer electronic market and the Growing Chinese retail market that has posed the threat to the company according to (Woods, S. 2011). The Chinese retail market has been growing over some years increasing its retail sales of buyer goods.
China is currently expanding its urban population at a higher rate; the BestBuy Company is now in a good position to use the opportunity positively by exploring and moving their business the growing China in order to enhance its expansion. Basing on the positive outlook by the BestBuy Company on the global consumer electronic market as an economic factor, the company may as well utilize the opportunity by providing different kinds of consumer electronics due to the projected electronic market expansion in the coming future. This can see the BestBuy Company increase its revenue with great margins.
Technological One of the key technological issues that the company may face in the global market is the penetration of higher labels into the market with a discouraging rate. This private sector drives competition in the market (Lawler, E. 1980), however, when exclusive labels are used, it creates a great advantage to electronic and technological companies like the BestBuy company since the products require some technological knowledge that majority of the no specialists don’t have giving BestBuy a great chance to maintain their consumer brand reliability ( Dawes, 2003)
Political/ legal National minimum wage is one of the most debated issue affecting the cost of production of goods in any given country. Nations which are aiming at increasing their nationwide minimum wage will result in an increase in the labor costs andand the corresponding production costs, however, this may be of great advantage to some foreign companies. For instance, if China increases its minimum wage, BestBuy company will greatly benefit from the increased prices of products at an advantage of other retailers in other nation, this will eventually give the company the competition championship.
Best Buy Ecommerce Strategy
E-commerce is the activity of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
Best Buy has been a leader in the retail industry for many years, and their ecommerce strategy has been a big part of that success. Best Buy’s online store offers consumers a wide selection of products, competitive prices, and convenient delivery options. Best Buy also offers a great customer experience with its user-friendly website and helpful customer service representatives.
Here are some of the key components of Best Buy’s ecommerce strategy:
– A wide selection of products: Best Buy offers a huge selection of products on its website, making it easy for consumers to find what they’re looking for.
– Competitive prices: Best Buy’s prices are very competitive, especially when compared to other retailers’ online prices.
– Convenient delivery options: Best Buy offers a variety of delivery options, including standard shipping, expedited shipping, and in-store pick-up.
Sociocultural E-commerce popularity is one of the sociocultural issues that many consumers encounter. The increase in the use of Ecommerce has seen the company’s total retail sales grow yearly. Products are being purchased online in many countries for instance, in Canada, e-commerce is growing at a faster rate , this gives BestBuy company a great challenge in coming up with better strategies to ensure that their customers adequately access their retail products. However, since BestBuy Company is more specialized in technology, there is a high expectation of growth in these nations.
Task Environment BestBuy Company faces competition from industries dealing with the same retail products like the Wal-Mart, Fry’s Electronics and Amazon Due to its strong operation strategies; it outdid other companies that collapsed like the Circuit City though the company still faces great challenges from e-commerce operations. Cost value and relationship with a channel is considered as a great barrier to entrance in the global market. BestBuy Company faces low-cost operation conditions as compared to other companies have multi-establishment that have many branches and can easily pick up in case one branch collapses.
This poses the great threat to entrance into the new market by BestBuy Company among other issues including the test of products by various consumers and the culture of foreign nations. Bargaining power of suppliers The bargaining power of suppliers has a great influence to the BestBuy Company with its main suppliers being Dell, Apple, Samsung and many other companies. The supplying power of suppliers act and a moderator for the industry, they can liaison with BestBuy industry on how the product design and features can be modeled before supplying.
Bargaining power of buyers The power of buyers can as well has a great influence on the company’s success or growth rate since the products from the company are supplied to them using several means, either Ecommencing ,price shopping among others. Threats from Substitute Products Substitutes pose threats to the success of the BestBuy Company, for instance, electronic products from Amazon Company, EBay, and others. Moreover, may people have had an access to the DVDS, televisions, and phones, if implies that the company must adopt new technologies to enter the new market?
Rivalry among established competitions In retail businesses, BestBuy Company faces great rivalry from many companies that were established in the business before it, just to a mansion, some of these companies include Apple Company, Wal-Mart stores, and the Amazon. Wal-Mart is the most competitive company in the market with pricing strategies that outdo other companies including the BestBuy Company. Stakeholder also plays a vital function in the Wal-Mart company ranging from managerial functions to production functions in the company.
They are the major driver of the company towards attainment of the company’s visions and missions Internal environment Corporate structure The BestBuy Company has its corporate structure as follow. President and CEO of the company -Hubert Jolly Executive officers include Sharon. McCollum Keith J, Nelsen Shari L and many others who are appointed to different managerial positions in the company, Corporate culture The company’s internal environment mostly involves employees who tirelessly work in the challenging environment that applies technology in order to its maximum to increase its production capability.
Best Buy Marketing Strategy
Best Buy is one of the largest electronics retailers in the world. The company sells a wide range of products, from laptops and tablets to appliances and home theater systems. Best Buy also offers services such as Geek Squad, a team of experts who can help with product installation and repair.
The company’s marketing strategy is built around providing an exceptional customer experience. Best Buy strives to offer the best prices on products and services, and to provide expert advice and support to customers. The company also invests heavily in advertising and promotion, using a mix of traditional and digital channels.
Best Buy’s marketing strategy has proven successful in driving growth and profitability. In recent years, the company has reported strong financial results, including increases in revenue, earnings, and market share. Best Buy is well-positioned to continue its success in the years ahead.
The company strives always to motivate empower its Corporate resources Marketing Marketing mostly involves the marketing strategy whereby the company is in the process of moving its focus to a customer based instead of the technological and product one. The reason behind the company shifting its focus to customers is to attract them and identify their preferences; this strategy sees the BestBuy Company grow to the global level. Finance Financial plans are one strategy that the company has used to the financial situation.
The plan includes eliminating unnecessary costs by closing stores, laying people off and ensuring that their market chains market efficiently. The company is also engaging greatly in E-commerce in order to hit the global completion market. R and D BestBuy industry must involve itself in the appropriate research and Development strategies in order to meet trend understand their customer needs. Since technology is one of the trending ways to utilize, the company must apply it to the maximum.
Human Resource Their human resource in the BestBuy Company must adopt a culture of training employees and select best ones who can flexibly work to take the company to the global level in terms of goal achievement. Information System The company should use the information system that adequately connects its customer with the operations. This can enhance good trust creation n between customers and the company due to the availability of information system that possibly maintains the rapport.