Best Buy Case Study

Today, Best Buy advertises using a “Low Price Guarantee” (Best Buy, 2013). They will match prices on qualifying products if the consumer finds a lower price elsewhere (Best Buy, 2013). Best Buy claims to be the “world’s largest multi-channel consumer electronics retailer with store in the U.S., Canada, China and Mexico” (Best Buy, 2013). That being said, they are the 10th largest online retailer in the U.S. and Canada (Best Buy, 2013). Their loyalty program, Best Buy Reward Zone, is ranked among the best of its kind (Best Buy, 2013). Best Buy has over 145,000 employees worldwide (Best Buy, 2013).

In Best Buy’s 2013 Annual Report, they company discusses its current International Segment (Best Buy, 2013). In 2009, Best Buy acquired the remaining 25% interest of Five Star (Best Buy, 2013). In 2013, they introduced the Best Buy Mobile concept in China (Best Buy, 2013). After success in its Canadian stores, they now offer the store-within-a-store experience in select Five Star stores (Best Buy, 2013).

Best Buy’s strength as a company comes from its innovative nature. They took their salespeople off commission to provide a different, informal buying experience for their customers (Ferrell & Hartline, 2011). The company also specializes in repairs through its Geek Squad division, which is an innovation that sets them apart from competitors (Ferrell & Hartline, 2011).

Best Buy’s weakness is its ever-growing competition in the CE retail market (Ferrell & Hartline, 2011). The online retailers are simply outpacing them. Even when a consumer goes to the store to look at a product, Best Buy is not guaranteed a sale. Often consumers will go try out the products in a store, like Best Buy, but then order the product online after they...

... middle of paper ...

...brand strategy that they used in Canada as a reference, Best Buy should begin positioning itself as the competition of Five Star. With the freedom that the dual-brand gives to test different strategies, Best Buy will be able to get a feel for what truly works in the Chinese market. Once they have gained a fair amount of the market share, they need to remain innovative. This is the stage where ideas, like the store-within-a-store experience, could be implemented.

References

Aaker, D. A. (2004). Leveraging the Corporate Brand. (cover story). California Management Review, 46(3), 6-18.

Best Buy (2013). Retrieved from http://www.bestbuy.com/

Ferrell, O.C. & Hartline, M. (2011). Marketing Strategy. 5th edition. South-Western/Cengage Learning.

Muse, W. V., & Hartung, K. L. (1973). Consumer Perception of a Dual Brand Name. Journal Of Retailing, 49(1), 23.