The Health of Best Buy

2476 Words5 Pages
bulb-icon

Recommended: overview of best buy

Best Buy has grown steadily and improved its business and customer’s experience in many ways throughout its journey from 1966 until 2011. The company’s main objective is to focus on making the customers visit to the store as pleasant and as informative as possible. The company is on its steady path of revolution and innovation by implementing customer driven and technology powered strategies. When any new business is setup, it faces its preliminary phase challenges and so has Best Buy but now the business is booming in the world of technology. It’s well known to be a one stop shop for all technological needs.

In these challenging times where technology changes on daily basis, companies are striving hard to focus on customers’ expectations and needs. This has increased expectations from the managers who are constantly trying to come up with new ideas and innovation to survive in the retail business. The health of any business is dependent on the way they are different from their competitors. In order to increase sales the company is completely dependent on uniqueness and the best way to satisfy the customers. Best Buy is committed to provide customers with a unique experience. In order to serve the customers to their best ability, Best Buy has changed its business model from Product Driven to Customer Driven.

Best Buy offers a variety of products from several different brands. It is not very easy to run an electronic store that offers such a vast a variety of products. It carries everything from basic washer dryers to highly technical laptops, printers and scanners. Therefore the nature of the business requires highly skilled and technical people to assist the customers better. This is a challenge for the managers who have to pr...

... middle of paper ...

...liminating shrinkage in this area.

Although Best Buy has grown in their management technology there is still room for improvement in areas to reduce overhead, shrinkage, and even technology. Shrinkage is still a problem even with the asset protection devices in place at Best Buy. There are still people out there with creativity to distract the door associate and walk out of the door with several thousands of dollars of electronics in hand.

Works Cited

Best Buy . (2011, 2 16). Retrieved 2 19, 2011, from Best Buy Competitiors Analysis from Hoovers.

Wagner, R. (2099). The Elements of Great Managing and Power of 2: How to Make the Most of Your Partnerships at Work and in Life. Gallup, Inc.

Walberg, R. (2011, February 25). Retrieved February 24, 2011, from Money Central: http://articles.moneycentral.msn.com/Investing/StreetPatrol/BestBuyIsABigTimeBargain.aspx

Show More
Related

  • Market Analysis: TJ Maxx

    1240 Words  | 3 Pages

    The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales

    Read More

  • Research paper on Nordstrom

    2960 Words  | 6 Pages

    "Nordstrom, Inc. SWOT Analysis." Nordstrom, Inc. SWOT Analysis (2012): 1-10. Business Source Premier. Web. 14 Nov. 2013.

    Read More

  • Benefits Of Best Buy

    728 Words  | 2 Pages

    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.

    Read More

  • A Business Analysis of Best Buy

    1148 Words  | 3 Pages

    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.

    Read More

  • Is Best Buy A Sustainable Competitive Advantage At Present?

    691 Words  | 2 Pages

    He started with a price matching guarantee policy, both in the store and online. Also, lowering prices to become even more competitive with online and discount retailers. The concept of show rooming was also nixed. Show rooming is where customers could try out products in the store, then go purchase the products online at a cheaper price. To improve the financial position of the company, Best Buy launched a plan called "Renew Blue" to strengthen business by cutting costs and increasing the supply chain. Since the launch, the company has stabilized comparable sales, increased the non-GAAP operating income rate 110 basis points from 3.4% in fiscal 2013 to 4.5%* in fiscal 2017 and grew the non-GAAP EPS from $2.54 in fiscal 2013 to $3.56* in fiscal 2017, at an average rate of 9% per year. In addition, they have increased the non-GAAP return on invested capital (ROIC) 810 basis points from 10.8% to 18.9%*(2017 Regular Meeting of Shareholders, n.d.). Best Buy’s exclusive brands, Insignia, Dynex, Init, Platinum and Rocketfish, give the company an edge over competitors by increasing differentiation and margins. A global sourcing office in China designs, develops, tests and purchases its own line of brands, manufactured under contract by vendors based in southeastern Asia. Best Buy intends to drive the sales of exclusive brands so that their contribution to total sales

    Read More

  • Dollar General Case Study

    1273 Words  | 3 Pages

    ...rtain extent but eventually it will not be enough to continue setting up store after store as a means of deriving a profit. Dollar General will need to consider implementing a few more information technology systems in order to keep their current rate of growth and to continue to grow. With better systems they will be able to better track stock whilst on its delivery path, maintain stock control and minimise theft. These few changes would be bound to achieve more profit and get their desired shrink rate down to 1.75%

    Read More

  • Strategic and Operational Plan: Best Buy

    1715 Words  | 4 Pages

    Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.

    Read More

  • Organizational And Hr Management: Best Buy Case Study

    1394 Words  | 3 Pages

    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, ...

    Read More

  • Business

    806 Words  | 2 Pages

    In the remote environment there are economic and technological factors that will impact Sears Holdings. Economic factors such as availability of credit, level of disposable income, and the willingness of people to spend will all be major factors affecting the company (Pearce-Robinson, 2003). Technology will also be a concern for the organization. To avoid obsolescence and promote innovation, a firm must be aware of technological changes that might influence its industry (2003). In recent years, the ease and availability of the internet has opened the doors in the retail setting where people now do not have to leave their home to purchase everyday items. During the next five to ten years the internet will become a way of life. Customers will be able to purchase their appliances, schedule an appointment, and even view, in a real time environment, the location of their service technician. To help Sears Holdings remain competitive they must remain conscious of market trends and internet technologies. Technological forecasting can help protect and improve the profitability of firms in growing industries (2003).

    Read More

  • Case Study Of Walmart Stores, Inc.

    1478 Words  | 3 Pages

    Over the past couple of years, Walmart has boosted its e-commerce operations and bringing in a large portion of revenues from online sales (Aronow & Burkett, 2015, p. 20). Gartner Inc. describes Walmart as a “supply chain pioneer” that has continued its push into e-commerce and has expanded investment in multichannel drive-thru pick-up centers and a ‘click-and-collect’ grocery service offered at some of its stores (Aronow & Burkett, 2015, p. 20). One of the components of Walmart’s supply chain in which their success is heavily relied on is the continuous improvement of their supply management as a whole, particularly within their e-commerce division. According to an article on the website logistics company Cerasis, “Not only has Walmart excelled over the decades in traditional supply chain management but… is also focused on continuous improvement by investing more into emerging technologies to capture more of the e-commerce market…” (University of San Francisco, 2015). A concept that our class had discussed time and time again throughout the semester was the concept of continuous improvement. Any given organization or business is constantly focused on continuously improving their business for the better. For Walmart, they believe that the anticipatory action of investing in emerging technologies will help differentiate themselves from the competition

    Read More

  • Nordstrom Case Study

    725 Words  | 2 Pages

    Nordstrom’s product offerings are not only of the best quality available, but are also presented in a fashion appealing to customers. The reputation Nordstrom has built in the industry has sustained their success for over a century. Nordstrom’s further expects to enhance their company philosophy in the future by implementing additional differentiation tactics that will continue their market dominance in highly volatile economy.

    Read More

  • Strategic Analysis Of Walmart

    1119 Words  | 3 Pages

    The company has experienced some downsizing in the sense of closing some stores. However, these store closings played a key point in the continued growth and success of the remaining stores open as well as the Walmart retailer online experience. These stores selected for the closures were all stores that based on sales, were not meeting a goal. Additionally, a characteristic that makes Walmart as a company interesting from an operations management perspective is Walmart’s online retailer capability that allows for individuals to pick up, ship to, as well as have one of Walmart’s representatives grab their groceries for them as

    Read More

  • Electronic Product Code Project

    4623 Words  | 10 Pages

    As a small grocery chain we are currently struggling to maintain our revenue stream and profitability against the competitive threats of the global warehouse chains (Costco, Wal-Mart, etc). We continue to find ourselves behind the curve in this competitive situation. These larger retailers have been able to use their greater resources and economies of scale to not only beat us on cost but also industry innovation. According to the electronic periodical Baseline, “Several dozen retailers and suppliers, including Unilever, Coca-Cola, Kraft Foods, and Wal-Mart have signed on to the next generation UPC called the Electronic Product Code (EPC)”, (Mullin, 2002). With the implementation of this technology a customer will be able to virtually walk through a store, collect all their groceries, and walk out without ever having to stop for a cashier or checkout procedure. The electronic retail chain Best Buy, which sells electronic devices along with household appliances, implemented this technology in many of its stores and has increased revenue, along with customer satisfaction due to always having proper stock on hand. We believe that this innovation will have a profound effect on our customer base, especially the highly desired, short attention span, and technically astute demographic of the 20-45 year olds. There are many other large retailers looking at this technology for the same reason (increased revenue) and studies show that smaller retailers would be willing to implement this same technology if initial installation costs decreased (2002). Our groc...

    Read More

  • Walmart Inventory Management Case Study

    1260 Words  | 3 Pages

    From the manufacturers’ warehouse to the shelves, the business must orchestrate a symphony of the right products to the right places at the right times. Walmart serves customers and members more than 200 million times per week in retail outlets, online and on mobile devices. The company is able to offer a vast range of products at the lowest costs in the shortest possible time (Chandran, 2001). The main reason for this incredible growth of Walmart is because its distribution centers are highly automated.

    Read More

  • Home Plus Case Study

    732 Words  | 2 Pages

    Organizational change is the altering of organizational structures and business strategy. As consumer preferences change, competition increases, and the economic environment fluctuates, business need to adapt to these changes to remain competitive. The management of Home Plus, a regional discount store, has proposed an increase of high-end products and a significant reduction in discount packaged goods. This is a change from the original business strategy in which the primary offerings were discount products. Before implementing the proposed strategy, Home Plus management must consider the benefits of the change and the consequences that may occur. As a member of the management team at Home Plus I disagree with the proposal to increase high-end

    Read More

More about The Health of Best Buy

Open Document