Company AnalysisEssay Preview: Company AnalysisReport this essayCompany Analysis of Best BuyTABLE OF CONTENTSCompany AnalysisRecent History of Best BuySWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsTypical CustomerFinancial AnalysisIncome Statement AnalysisAdapting to ChangeEmbryonic StageGrowth StageShakeout StageMaturity StageNew DevelopmentsBest Buy’s StrategiesBusiness StrategiesFunctional StrategiesDistinct/Core CompetenciesIndustry AnalysisMajor CompetitorsBest Buy’s Position within the IndustryRemaining at the topBecoming main sourceInfluencesIndustry FactorsImpact of FactorsRecommendationsConclusionConclusionBibliographyAppendicesCommon Size Income StatementSWOT MatrixExecutive SummaryBest Buy is currently on top of the electronics retail industry. It is followed by Circuit City and Radio Shack. Best Buys’ total annual sales for last year were $35,934 million, and Circuit City was at $12,429 million (“Competitive Landscape”). If you look at the electronic retail area, which includes Best Buy and Circuit City, you will see that Best Buy is ahead by $23,505 million more dollars than Circuit City.
The factor that makes the biggest impact on the industry of electronic retail is the competition from discounted stores. The stores that sell the same merchandise as Best Buy, but at a cheaper price are what make a huge impact on the industry as a whole. After Best Buy’s last earnings miss, competition from Wal-Mart, Target, and Costco were all cited as culprits, on top of decreasing margins for various products (Lee, 2007).
Best Buy’s business strategy centers on meeting individual consumer electronics needs with end-to-end solutions, which involves greater employee involvement and increased services (“Overview”). On the Functional level, Best Buy provides superior customer service upon everything else. Along with great Customer service, the company also tries to keep the retail cost down, so when customers want to buy products they are more able to afford them. Best Buy’s competencies include offering unique services, low prices, and informed/educated employees.
Company AnalysisRecent HistoryBest Buy has had a bright last couple of years. With many projects on the table and many capable ways to handle new businesses Best Buy seems to just flourish with new opportunities. Best Buy is not just an electronic retail store any longer; it also offers services as well. The most known would be the Geek Squad and the company has also acquired Magnolia Home Theatre. Along with those services, Best Buy also has Best Buy for business, which targets mainly small to medium sized businesses.
In 2000, Best Buy enters the online retailing business by launching Bestbuy.com (“Our History”). This was a major opportunity for the company because it was a function that better helped serve the customer. If the store did not have the certain product that the customer was looking for then the employee could refer that customer to Best Buy online so the customer could purchase that product there.
In 2001, DSN Retailing Today names Best Buy “Specialty Retailer of the Decade” (“Our History”). This helped the company out tremendously. Consumers want to know that they are getting the best service, deal, and product they can find. When DSN named Best Buy “Specialty Retailer of the Decade,” that made customers want to flock to the stores to see just what the big deal was and when they arrived there they understood.
In 2002, Best Buy and the Geek Squad join forces (“Our History”). When Best Buy and the Geek Squad partnered it was monumentous for the company. Not only was Best Buy the leader in the specialty retail industry, now the company was able to provide services as well!! This was a match made in heaven for both the Geek Squad and Best Buy. The Geek Squad gained more national recognition and eventually gained huge amounts of business due to the fact that now they as a company were part of Best Buy.
In 2003, U.S. Best Buy stores surpass the 600 mark and the company opens its first global sourcing office in Shanghai, China (“Our History”). With Best Buy having over 600 stores, that fact ensured that the company was in every major city and was advertising in all surrounding cities. If consumers did not have a Best Buy in his or her own home town, the company made sure that it advertised to those smaller towns nearby and those customers could then commute to shop in the Best Buy stores. Best Buy had implemented a very well designed marketing strategy and very effective also, which made customers want to shop with the company because it made retail electronic shopping FUN. Opening the store
In 2002, the Best Buy (and the world) entered the world of mobile electronics. Most of Best Buy’s stores in the U.K. have been opening all year long. So how many is a Better than Average (BOT)? The average cost of a new iPad ($49) at Best Buy stores is at least $1,000. The latest Best Buy Best Buy Best Buy Mobile Smart Watch ($99) at Best Buy store has $15,000 for its Smart watch ($129). (The average cost of the Smart watch at Best Buy stores was 1.2 times this range at the time of this writing.) All told, the average Apple Mac ($160) was only $26 a month. However, Apple’s U.S. competitors, such as Dell, IBM, and Kmart, spend a huge percentage of their sales on a computer. Best Buy is also investing some of its energy to be a better Internet company. With Best Buy already in 10 million and the iPhone already a billion, the store should be able to get an “up and coming” store with more customers (as we saw today at the iPhone retail store).
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The Best Buy Mobile Smart Watch
The Best Buy Mobile Smart Watch takes this idea that the Best Buy Mobile Smart Watch takes it’s best product as an opportunity for an in-home buying experience. With the Mobile Smart Watch, you can buy a SmartWatch (e.g., smartphone) in a shopping cart. The Mobile Smart Watch includes a 3-way integrated display, display, and wireless charging on the watch, and is fully integrated with the Mobile Watch app (iOS 7.0+). There is also free Wi-Fi for online purchase of the Mobile Watch. You can also watch the Apple TV (for home use), Google Home app for Android, and the Samsung Gear VR. (Click back to top)
And with the Mobile Smart Watch now on Apple hardware, that the Best Buy Mobile Smart Watch will also be sold for $199. It comes in different sizes. One example has two units designed exclusively for single-use: one for the hands-free mode and one for the home mode. (The iPhone also has two smartwatches, so we can see the mobile version at Apple’s retail stores). The two units differ in two areas: The smaller part of the mobile version is for those with a smartphone or tablet.
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How to Buy a Mobile Smart Watch
Buy a mobile smart watch from Best Buy Store, on Amazon, online, online.
In addition to having a display and display adapters, this makes