Bestbuy Analysis

ADMN 404

Assignment 1

Scott McIsaac

Executive Summary

Best Buy is the industry leader in the North America for electronic retailors. They approach the sale of electronics much differently than most. Rather than being focused on the low-price strategy, they have adapted a customer-centric model that provides end-to-end service. Best Buy was originally incorporated in 1966 under the name “Sound of Music” before changing over to Best Buy in 1983. Since it has grown tremendously through increased market share and acquisitions of companies globally. It now has over 1,100 stores in the U.S. and over 2,800 in Canada, Mexico, China and Turkey.

The core values and visions of the company are all based around the customer and there full circle experience, they strive to make life fun and easy for consumers. Best Buys mission is to make technology deliver on its promises and it does so through its customer service. With the acquisition of companies in the technology industry Best Buy has been able to establish an end-to-end service that has gave them a sustainable competitive advantage.

With the gaining popularity of the Internet and web-based companies Best Buy is starting to acquire more competitors. Companies such as Amazon have been able to enter the market with lower overhead cost and are practicing the same low-price strategies as the brick and mortar companies.

Best Buy is forced to look at its internal and externally forces and continues to shape their customer-centric business model, which has made them so successful. As the competition grows the strategies need to adjust accordingly. They feel that if they can continue to be innovation with process and products, keep well-educated top-notch employees and superior customer service that their business model will keep them at a sustainable competitive advantage for years to come.

Introduction

Best Buy is the largest consumer electronic retailer in the U.S. with over 1,100 stores (Hoffman,...