Best Buy's Dual-Branding Strategy: Best Buy With Canada

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Recommended: The role of culture in international markets discussed

The dual-branding strategy Best Buy created with Canada was a new venture for them. Their plan to go with Canada first was that is was close to their current territory and they felt they could understand their market a quicker. But as with any new strategy comes with learning curves and Best Buy found some along the way. They needed to understand how to incorporate their current business structure and align it with Future Shop’s operating processes in order to avoid cannibalization between stores and blurring the brands identities in the eyes of the consumer (Ferrell & Hartline, 2011). Some of the lessons learned during the dual-brand strategy with Canada was, how to keep the two brands distinct between the Best Buy brand and Future Shop’s, how to build international leadership teams, share infrastructure and capabilities, utilize a private label to improve margins and differentiation, and focus management attention around core/optimize/transform (Best Buy, 2008).

Best Buy knew they needed to move outside the US market in order to expand their competitive advantage. The Canada strategy proved to be very successful and provided the leadership of Best Buy a road map to follow, allowing them to feel more confident moving into other …show more content…

Best Buy chose them because of their market opportunity, consumer fundamentals, and macro-economic factors (Ferrell & Hartline, 2011). But the cultural from the US to China is very different and can provide many obstacles when organizations try to compete within their structure. Best Buy knew they needed to team up with a company that was well established in order for them to make that move. And although they had already created a dual-brand strategy outside the borders of the US, the move into China would present different situations for the leadership of Best

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