Best Buy Customer-Centricity

Best Buy Co., Inc.:CustomerCentricity

An analysis of Information System/Information Technology

External On line store Company uses IT strategically, willing to invest money to try new technology and willing to take the risk for the new Lv.1: Strategic adopting new technology. Once the strategy is implemented, the company’s competitors normally need more than 5 years to catch up. Company willing to invest money to adopt and try new technology. But once the company success in using the Lv.2: Offensive new technology to improve their business, their competitors can easily mimic and copy their move, and this normally won’t take longer than 1 year. In this level, company copy or Lv.3: Reactive mimic their competitors’ move for adopting new technology. In this level, the cost-benefit is Lv.4: Cost-Benefit the only factor for the company to decide whether to use new technology or not. The company is forced to Lv.5: Controlled use/adopt new technology.(By government, standard or their For sure Best Buy has their web site and did some on line Adv. Not started yet Not started yet Daily ROI and others must be provided by IT system. Onlie customer servise On line Adv. ERP system

Internal HR system

Must be implemented since their reward is based on their performance.

Potential Entrants Wal-mart Dell Amazon Suppliers Sony, Phillips,,,,,,, Major Electric companies

High: Start dealing with High End model, Online shopping ↓ Focus on Customer Centricity

Low: Buy a lot by discount price ↓ No room of price reduction from Suppliers ↓ Private brand? Supply Chain management

Industry competitors Circuit City High : Price conscious ↓ Focus on Customer Centricity

Buyers Angel & Devil High & Low (bipolarization) High: Devil, Low: Angel ↓ Focus on Angel

Substitutes On line Demand(DVD) Smart Phone(Music player, PC,TV, Video game) Tablet(TV,PC , Video game) PC(Music Player, TV, DVD recorder , Video game) Hard Disk(DVD recorder)

High: Substitutes are sold at...