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Overview of best buy
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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...
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...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
This merger will bring a wide array of products to a larger group of consumers. Currently consumers looking to buy home appliances like stoves or refrigerators have to go to a mall with a Sears store or a specialty store like Best Buy or Circuit City. Not all consumers live near a mall, so buying from Sears may not be an option. Although bot...
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
Best Buy is currently underperforming because of several circumstances. It is at a competitive disadvantage with some large firms such as Wal-Mart and Amazon in terms of supply-chain and distribution, which impacts the customer in terms of price-point. Additionally, Best Buy has been undergoing a strategic change of direction that focuses more on small specific stores, and less on the larger, broader operations for which they are currently known. Though this may bode well for the future, there have been financial consequences from this process.
On January 22, 2002, Kmart Corporation was crowned largest retailer seeking bankruptcy protection. As sales declined after a while due to increased competition, management also was neglecting the corporation’s supply chain operation. This neglect launched a surplus of goods doomed for blue light specials (discount/bargain area) that could ought to be trapped in semi-trucks beds behind the shop since the current products on the shelves weren’t moving.
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).
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, ...
Nordstrom has remained ahead of their competitors for one reason only: their impeccable customer service. Even though their current customer service strategies have created great customer loyalty, there are methods to increase this loyalty. One approach would be to enhance the customer's online experience. For instance, the company could provide a personalized experience by having shoppers choose from a variety of standard styles in order to understand their preference. After the analyzation, Nordstrom could pull all items from their inventory and suggest them one page to the shopper. The service would resemble a personal concierge service, but online. Not only does the personalization increase customer satisfaction, but it removes the hassle
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
JCPenney overall has done a good job of trying to merge technology and retail together, but, moving forward, JCPenney should be mindful of its competitors as well as monitor and control feedback from its consumers. It was strategic to innovate the store experience, however, JCPenney needs to focus on satisfying the right target segments in order to become profitable again, which will avoid future plans from backfiring on the company.With that in mind, it is important that JCPenney pays attention to future trends in the retail industry such as the e-commerce trend. This will allow for the company to become more of a hybrid retailer that profitably meets consumers needs both online and in-store (Hartung, 2013). By aligning their techniques of differentiated marketing with sales promotion, the core of retail, JCPenney can better attract consumers and… .
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).
Best Buy has grown as a company since 1966 to today. They sell much more products than they did in the past. Best Buy today sells several of things like TV’s, cameras, movies and games, mp3 players, DVD and Blu-ray players, and the list could go on. They sell more than just electronics. They sell items for the home and office, small and large appliances and fitness technology. Best Buy even offers services like Geek Squad, repair for all sort of items, delivery and installation; trade in center (only in certain areas) and cell phone services (AT&T Wireless, Verizon Wireless, Sprint, Boost Mobile, and T-Mobile).
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
Seitz, P. 2011, Best Buy Results Fall Short; Price Competition Takes Toll Amazon Price-Check Specials The consumer electronics retailer said running twice as hard just to stay in place, Los Angeles.
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
Hoover describes Amazon as the Earth's biggest everything store. If Wal-Mart improved its online presence and online store, Wal-Mart can easily be the ne...