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analyze mobile phone market
best buy differentiation strategy
are there larger problems in the competitive landscape for best buy
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4. Researchers believe that there is opportunity within the competitive landscape to target specific segments of the consumer electronics and appliances industry [Exhibit 2]. Specifically, we believe that Best Buy can follow predicted trends within the industry and focus on selling products that focus on mobile and Internet technology. Best Buy has already created Best Buy Mobile, which does provide a comprehensive assortment of mobile phones and accessories, but they can create a competitive advantage by focusing more on their mobile department and by adding on more Internet-based technology options such as different types of tablets. Currently, they have 409 Best Buy Mobile stores compared to their 1,056 regular Best Buy stores (see endnote ii). They should increase the percentage of Best Buy Mobile and even place more Mobile sections within their regular stores. Although some competitors such as Apple may already provide cellphones and tablets, Best Buy can offer a wider product range that includes multiple brands if they increase their focus on these electronics. In addition, other competitors, such as large retailers, may sell similar product lines, but by once again focusing more on this specific product group, Best Buy can offer a more comprehensive product assortment. Essentially, by moving towards mobile and Internet technology, Best Buy creates a competitive advantage by addressing its competitors’ emphasis on their own single brand or on competitors’ shallow depth in their product assortment.
Furthermore, researchers also believe that prices for large electronics and product lifecycles within the industry will continue to drop along with technology catering to early adopters [Exhibit 2]. Best Buy can exploit this ch...
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... the level of scope in terms of a variety of brands and electronic products. This makes Best Buy unique in type, which we feel could be utilized to make it a one-of-a-kind store for all your technological needs. This could bring about a major turnaround for the firm, creating value for shareholders.
Finally, we feel that Best Buy is making valued progress in terms of bringing about their own turnaround. From their 10-K annual report, it becomes clear that they are very aware of, not only their own situation, but the changes in the environment and industry as well. Their thorough investigations and awareness give us hope that they will continue to improve in the future. This has led us to conclude that investing in Best Buy would be a sound and beneficial decision, as we feel that they are on the edge, just beginning their big comeback into profitability and growth.
If we refer to products, people often take them as the things we get from suppliers with a price. Apparently, this is a definition from the perspective of exchanges and does not quite catch the essence of the meaning of product in the marketing discipline. In this regard, Rothschild (2009) offered a probably better definition for products as a bundle of benefits for customers. This definition also offers an important perspective for JB Hi-Fi to understand its products. Because after all, JB Hi-Fi is only a retailer and all its home theatre products are sourced from their manufacturers. If JB Hi-Fi only sees its products as the tangible parts, it may miss out the very important parts of the competition. However, if JB Hi-Fi sees the product as a bundle of benefits it can offer to its customers, the tangible part is only part of this bundle. There is much more for JB Hi-Fi to offer to improve the benefits to customers, and at the same time differentiate itself from its competitors.
With minimal aid from interviews with managers and no exposure to the marketing entity of the company, I was able to accomplish much of my findings related to the macro environment of Kohl’s through diligent online research. One of the major changes occurring in the retail industry is online shopping. Substitutes such as Amazon, eBay, and other online retailers are replacing the technically savvy shoppers from ever having to enter a store. Kohl’s competes with these outlets by remaining on the cutting edge of integrated technology to enhance the customer experience shopping their brand. They are currently testing multi-function tablets in jewelry and beauty departments that can be used to demonstrate
Best Buy operates in an oligopolistic market where there are significant barriers to entry and few large firms dominate the market by selling identical goods. Best Buy is a non-collusive oligopolist, existing in a strategic environment where firms do not cooperate, yet are interdependent due to the fact that a firm’s action affects the market. Recently, Best Buy experienced an increase in demand, increasing its revenues and profits.
Best Buy’s History & Main Characters: Best Buy is Minneapolis-based and is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Throughout Best Buy's 37-year history, the company has maintained the tradition of making life fun and easy for customers and employees, while providing a significant return to partners and investors. It has 80,000 employees and over 550 stores in the U.S., in addition to the brands Best Buy Canada, Future Shop and Magnolia Hi-Fi. Their leadership is led by Dick Schulze, Founder and Chairman, Brad Anderson, Vice Chairman and CEO, Al Lenzmeier, President and COO, and Darren Jackson, Executive Vice President of Finance and CFO. Chairman Dick Schulze founded Best Buy in 1966 with the Sound of Music, an audio component systems store in St. Paul, Minn. In 1973, Vice Chairman and CEO Brad Anderson joined Sound of Music as a salesperson. The company quickly expanded into video products and computers, was renamed Best Buy in 1983, and became a public company in 1985. Best Buy’s revenues for fiscal year 2003 were $20.9 billion and net earnings of $622 million. It was ranked number 91 on the Fortune 500 in 2003 (Bestbuy.com). Best Buy stores are redefining the way customers shop by offering an unparalleled assortment of affordable, easy-to-use entertainment and technology products and services available through its network of more than 550 retail stores in 48 states and online at BestBuy.com. Best Buy is scheduled to open 60 new stores in fiscal 2003 and is on track to have 650 stores by fiscal 2005. Magnolia Hi-Fi is a high-end electronics retailer specializing in audio and video solutions for homes, ...
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
From the consumer side, Amazon provides services like Amazon Prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the Kindle library, everything for an annual
Given the dominance and fiercely competitive nature of Wal-Mart and Target within the big box discount retail industry, Dollar General avoided competing head-to-head with these larger rivals by differentiating a classic generic bu...
This paper focuses on Apple Inc.’s cult-like following, Apple stores as a marketing strategy, and the company’s ability to maintain its current level of success in product innovation and customer loyalty moving forward. It is a well-known fact that Apple has developed a following of loyal customers that has often been referred to as cult-like and Apple customers have been referred to as iSheep (a term coined to describe the herds of blind followers). According to research conducted by simonlycontracts.co.uk, only 28% of the 2,275 Apple customers surveyed purchased their iPhone because it “seemed to be the best phone at the time of switching” (Kelly, 2014, para. 11). This leads one to question how if only 28% perceived the iPhone to be the
...ays. “Wal-Mart is able to maintain lower levels of inventory and still meet customer demand. These lower inventory levels result in either a reduced floor plan with lower carrying costs and lower interest expense – or a greater diversity of products on the store shelves.”3 Both of these result in a significant advantage over its competitors when it comes to operations. Due to Wal-Mart’s superior ability to order inventory on demand, they are in a position to also meet customer demand better than their competitors. This is especially true with fad products, because they are only popular for a limited amount of time when they become unpopular they can leave massive amounts of inventory that nobody wants to purchase. Due to Wal-Mart’s superior supply chain and their technology they are better able to avoid carrying an oversupply of fad items, and regular items as well.
This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.
With the performance fell beyond expectation, Best Buy announced The Renew Blue strategy in 2013 th...
In this era of emerging economies and growing globalisation, the demand for symbolic goods continues to expand, and at a fast rate. With recent advances in technologies such as personal digital assistants (PDA’s), satellite/tracking devices, mobile phones and many others springing up almost every day, it is not surprising that consumers would be willing to part with large amounts of cash for these products. One of such technological advancement is the iPhone, a fascinating instance of adaptation, which is fast becoming a most sought after brand. The issue however is whether this new technological advancement of the iPhone is going to be a continuous trend or will just fizzle out in the nearer future.
Samsung Electronics Company (SEC) began doing business in 1969 as a low-cost manufacturer of black and white televisions. In 1970, “Samsung acquired a semiconductor business” which would be a milestone that initiated the future for SEC. Entering the semiconductor industry would also be the beginning of the turnaround phase for SEC. In 1980, SEC showed the market its ability to mass produce. SEC became a major supplier of commodity products (televisions, microwave ovens and VCRs) in massive quantities to well known original equipment manufacturers (OEMs). For this reason, Samsung was able to easily transition into a major player in the electronic products and home appliances market (Quelch & Harrington, 2008).
The year is 2014, the markets are changing constantly, and they always have to meet the needs of new consumers as well as old consumers. Mobile telephones have been in the retail and wholesale business for quite some time, and are only evolving from here on out. There are things that these cell phones can bring us that are major benefits in our everyday lives. Cell phones bring us maps, radios, address books, and even flashlights now. Cell phones have taken shape from a huge portable device to a more convenient thin device that can fit in your pocket. With time in any consumer market, the consumer adapts to the technology that makes their life easier. The constant innovation of cell phones has led us to smart phones, and these smart phones are capable of putting certain businesses out of the market. Businesses that engineered PDAs in the past were met with challenges because smart phones are able to match their productivity. Land lines have become useless since everyone can afford a mobile device now. Listening to music has also switched from a traditional CD Player/MP3 Player to an everyday smart phone.