Wal-Mart is coming off a disappointing third quarter when its largest revenue generator, sales from U.S. stores, dropped 0.3%. The company also has forecasted flat earnings during the critically important holiday season. While lowering its full-year forecast, Wal-Mart still expects to see modest sales growth in FY2015 through the opening of smaller, more targeted stores, and its longtime strategy of lowering prices. However, there is some doubt whether these measures will be enough to stave off Wal-Mart 's competitors. Costco NASDAQ: COST is coming off a big year with more than $100 billion in revenue, 5% growth in U.S. store sales, and 7% growth in international sales. As Costco continues to challenge Wal-Mart domestically and internationally,
Best Buy, though a firm in the general retail industry, is a major player in certain sub-industries that
Best Buy began to experience slow sales growth in 2011. Sales growth slowed down from $49,694,000,000 in 2009 to $50,272,000,000 in 2010. Sales growth slowed down even more from $50,272,000,000 in 2010 to $50,705,000 in 2011. The sales growth from 2010 to 2011 was less than 1%. The company’s sales decreased by 11.09% in 2011 verse prior year and decreased by 5.93% in 2013 verse prior year. Sales growth slowed down to 1.59% in 2012 verse prior year. There was a slight lift of 7.37% in 2013 verse prior year. The recession and increase in competition had affected Best Buy in 2012 and 2013. During this time, there was a surge in new mobile apps that made shopping easier and more convenient for consumers. Best Buy was not ...
With the passion for the latest and greatest technological knowledge, and the charisma and devotion towards the youth, Best Buy is sure to continue on the high road to success. Best Buy will be changing and advancing to accommodate the ever-changing field of technology. They are truly a testament to upholding and exceeding their vision statement of “meeting the customer at the intersection of technology and life” (FAQ).
Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.
Best Buy has been successful at adapting to it environment in the past and will continue to do so if they continue to scan their environment. Best Buy does both external and internal scans to determine areas of interest. While being involved in the sale of multiple trend specific items is beneficial for sales, keeping up with the changing trends can be quite troublesome. Best Buy employs team members whose sole purpose is to scan the environments and predict changes in these trends. Polls and online surveys help to predict changes to the environment as well. I believe that as time progresses Best Buy will focus more on external scanning to keep up with trends and competitors. As we progress into a more online society I believe
Whitney , L. (2012, August 08). Best buy founder's strategy: Cut prices to better compete. Retrieved from http://news.cnet.com/8301-1001_3-57489213-92/best-buy-founders-strategy-cut-prices-to-better-compete/.
Best Buy is a business that can thrive with a few changes to the company. There are several improvements that the company could make to help with areas like sales and in becoming more competitive with the other retailers in the industry. Some of those areas include online sales, the size of retail locations, merchandise display, return policies, loyalty program, the Geek squad, and public relations. Improving in some of these areas will make the store more competitive, more attractive to customers, and improve the overall likeness of the company. In turn help save the company from going under in the near future.
Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based out of Eden Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million in total revenue last year. Best Buy carries a wide variety of products consisting of Major Appliances, video and audio equipment, computers, software, music, and wireless technology. When analyzing this corporation it is important to pay close attention to its current and future services and products, any problems with the corporation, the future direction Best Buy is headed, what can be done for the corporation, and what it can do for you as a consumer or employee.
First of all, Best Buy lacks a various range of different basic business concepts, throughout the years the electronics retailer hasn’t been meeting the minimal needs of consumers, I’ve been reading several different reviews on Best Buy’s customer support forum on their website, and it’s just plain shocking the lack of customer satisfaction Best Buy hasn’t been
Due to the fact that Best Buy is non-collusive, they face a kinked demand curve that ultimately determines the firm’s relative market share. The demand curve consists of an elastic and inelastic portion. Oligopolies avoid both portions, where in the elastic portion, competitors keep prices low to steal customers, and the inelastic portion where price war occurs since competitors also lower prices, resulting in no gain in demand.
Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman, Snell 2003 p.113). A good example of this is Wal-Mart's main strategic goal. It is to provide quality merchandise at an affordable low cost to consumers. Its operational goals focus on efficient logistics requiring technology and inventory management systems to help reduce costs so it can be passed on to the customer. Operational plans are derived from a tactical plan and are aimed at achieving one or more operational goals (Bateman, Snell 2003 p.113).
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, ...