Leading the industry in a particular field relies on a strategic approach to marketing by analyzing competitors’ successes, challenges, or failures establish a baseline for success. Analyses of strengths, weaknesses, opportunities, and threats (SWOT) allow companies to identify areas of accomplishment or those in need of improvement. As Ferrell and Hartline (2014) assert, a situational analysis must account for current and future situations or the information gathered for the analysis is unsound and useless for strategic planning. Electronics retailer Best Buy has diversified and invested in weaknesses to produce an overall strong presence in the industry. Best Buy offers newly released electronic products to consumers, to fulfill needs and remain relevant in the market. Many organizations do not respond to the major identified components of a SWOT analysis, creating failed strategic marketing planning efforts.
Best Buy is an American multinational electronics retailer with international locations in Canada and Mexico. Founded in 1966 as Sound of Music and later renamed to Best Buy in 1983, the company rose to major status with a strong business model and marketing strategy. The company headquartered in Richfield, Minnesota, focuses operations largely in the United States. With 1,379 locations, the store generates nearly $40 billion annually and employs more than 125,000 individuals (Best Buy, 2016a). According to Bailey (2016), the company began phasing out international locations in 2013 to focus more on U. S. sales, where growth was high. The company takes pride in having a U.S. retail location within 15 minutes of more than 70 percent of the population (Best Buy, 2016a). Best Buy has ...
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...echnologically advanced products for sale.
Best Buy identifies strengths and weaknesses in an internal assessment of company resources to meet customer needs. Externally, new market segments and the opportunities help offset the threats of increased competition in the industry. The company continually responds to weaknesses and threats to increase strengths overall. By attracting the best talent and providing an environment worthy of a major electronics retailer, the company positions itself to decrease threats and weaknesses and take advantages of identified opportunities. However, some threats remain due to economic conditions and inventory control issues (Bailey, 2016). By responding to the largest SWOT analysis results, Best Buy continues to successfully implement a strategic marketing plan, allowing for growth and remaining relevant in the market.
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