Strategic Management Best Buy Case Analysis

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Best Buy Case Analysis

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5 December 2013

1. From an Industry Analysis (show it in an exhibit), what are the major Keys to Success for the industry in which BB competes at the end of the case? Is this an attractive or unattractive industry? What changes would you expect to see by 2018?

The industry is consumer electronics and it is mature, saturated and highly competitive with a high rate of technology development and diminishing exclusivity. Some keys to success in this industry are described below.

1. New technology or exclusive rights

Since suppliers are entering the market, developing a new technology that is unique and sets apart from the competition would be one key to success. Since the industry composes of retailers and suppliers, either a supplier enters the market with its new product like Apple did a few years ago with the smart phone, or a retailer obtains exclusive rights to sell the product.

2. Customer service & support

A second key to success would be to offer exceptional customer service and support. This would be before, during and after the purchase. Before the purchase being able to answer customer’s questions about the products, address the needs of different customers since the customer profile is expanding, and recommending suitable products are all crucial. After the purchase, offering buyers with technical support, teaching them how to use the product, offering repairs are all ways to differentiate in the market and be successful.

3. Range of products all at competitive prices

A third key to success is being able to offer both high-end and low-end range of products at competitive pricing. The saturation of the market, the rapid development of technology all mean decreased prices and profit margins. Furthermore, in a highly competitive market, one must be able to differentiate its products to be able to charge a premium...