A Business Analysis of Best Buy

Best Buy was not always called Best Buy. In 1966 Richard M. Schulze and his partner (Gary Smoliak) founded Sound of Music. This was later renamed to the name that many know as Best Buy. But is there more to Best Buy that consumers should know? For example who is in charge, how much do they make a year, how do they make their decisions, how many people work for them and more.

Sound of Music was mostly known for audio specialty. In the same year (1983) Sound of Music changed its name to Best Buy; they also went from audio specialty to consumer electronics. Best Buy started to open more store, in 1983 they open their first super store. This was in Burnsville, Minnesota. In 1989 Best Buy wanted to expand their retail even more, and they sure did. They launched warehouse-style retail for their stores. Best Buy didn’t stop there they even started to change their logo. The one that many people notice is the yellow tag with the company’s name (Best Buy Co. Inc.) in the middle all in blue. There have been many changes since but not as notice-able like the one in 1989.

Best Buy has grown as a company since 1966 to today. They sell much more products than they did in the past. Best Buy today sells several of things like TV’s, cameras, movies and games, mp3 players, DVD and Blu-ray players, and the list could go on. They sell more than just electronics. They sell items for the home and office, small and large appliances and fitness technology. Best Buy even offers services like Geek Squad, repair for all sort of items, delivery and installation; trade in center (only in certain areas) and cell phone services (AT&T Wireless, Verizon Wireless, Sprint, Boost Mobile, and T-Mobile).

Best buy is a corporation, which means it’s a...

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... shop), which can be found in various airports and malls trough out the world. Along with subsidiaries Best Buy has many competitors some well know ones are Wal-Mart, Radio Shack, Amazon.com, Staples, Office Depot, and Circuit City. With competition mean there is a market, with a market there is financial.

This brings us to our next and last topic. Best Buy has gone through some great and bad times financially. For the year 2013 Best Buy had almost $50 Billion of revenue. In their third quarter fiscal year 2013 they made $9,381. For the last five years Best Buy has stayed in between 18% to 21% percent. In 2009 – 2010 it improved 20%, 2010 – 2011 improved 21%, 2011 - 2012 it improved 21%, and in in 2012 – 2013 it declined 20%. Best Buy has shares that sell for #17 a share in December 2013. Best Buy has 346,008,000 shares outstanding as of January 10, 2014