SWOT Analysis Of Best Buy Co.

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Background Information History In 1966, Richard M Schulze, the founder and chairman of Best Buy Co., established Sound of Music, Inc. in St. Paul Minnesota. Focusing on home and car stereo systems, Sound of Music, Inc. reached approximately $170,000 at the first-year sales. After four years, Schulze proceeded to expand his retail chain. However, in 1981, Schulze realized that there were limitations and not much of a foreseeable future in only selling audio components. Then, he expended his offerings to include appliances and VCRs. The largest and most profitable Sound of Music store was hit by a tornado. Everything had been destroyed, but storeroom. Schulze came up a quick sale plan, “Tornado Sale”, to clear the damaged and excess stock. He …show more content…

uses differentiated business-level strategy by attracting customer through proving various and plentiful well-quality technology products. Moreover, the comfortable shipping environment and skilled salespeople can help Best Buy to deliver a good communication to customers. As Best Buy has been set up for over 20 years, it constructed a good and long relationship with customer loyalty, large customer base also retailer base. Thus, it is easier for Best Buy to maintain steady supplies. Besides, there are few weaknesses. Best Buy has a lot of large-scale physical retail store around the world. The operations cost must be enormous. However, the private online retail stores have less operation cost and factory overhead. Thus, online retail stores are more likely to provide lower price than Best Buy does. Due to this problem, Best Buy can do reasonable seasoning sales and provide better guarantee services than online retail shop to attract customer. Moreover, the large-scale store with multifarious products is relatively more difficult to find specific product than online shop or Retailers’ own brand store. Best Buy can launch quick search information software on tablets that provides customer where to find the product they are looking for. It can reduce the searching time in the

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