It revenues increase by This figure is much more then the average rate in the same fiscal year. The company has shown that the company is efficient enough to capture the large share of the market. Strong operating performance implies that not only was the company able to increase its market share but also its operational efficiency. It is the biggest weakness for the company. The company should not rely on one product.
If the product is hotcake today, it can be outdated tomorrow. Then it will harm the company as well as its revenues. The emerging trend of electronic items in the market is an opportunity for the Best Buy Company to accelerate their profits by offering them.
Best Buy Company has an opportunity to expand their business globally. As electronic items have a big consumer market, so there is also a chance of gaining more profits inside the other countries.
Recently Best buy company opened there outlet in China. And it attracted a large number of buyers. Electronic items are mostly luxurious items. And high income is depended on good economy. If the income of a person falls then he will definitely go for the basic items not for these secondary items. So at this point the company can lose the profits. If you need custom essay, research paper, thesis or term paper on Business or Economics — feel free to contact our professional custom writing service.
Best Buy Company Inc. Order a custom written paper of high quality Professional Writers only. Free Quote or Order now. Tips for Buying a Car in University. On becoming a student, each one gets a sense of freedom and adolescence. The company has also developed a reward zone program which allows the customers to earn points and receive gift certificate for future purchase Pride, Resources and capabilities that allow the firm to complete important tasks are one of the strengths of the company.
Best Buy is able to effectively manage the flow of its inventory that helps them complete the important task of having the right merchandise on its shelves for customers to buy. Although Best Buy has a large market share, the sales of the company heavily relied on domestic sales. The company still needs to push the products to the market in order to stay in the global market. Best Buy lacks strategies in strengthening the business in other countries where the company operates.
Another weakness of Best Buy is its poor marketing strategy. The company focused solely on a market niche for affordable products, neglecting the niche that demands for high end items. Best Buy has been recognized as a store for frugal shopping, which became the initial positioning statement in the market. The constant penetration of companies in the market with new products to introduce to the customers may give an opportunity to Best Buy to grow more in the marketplace. New items are being released and more products are expected to come out in the market in the future.
The plan of Best Buy to open new stores in other countries may help the company to expand globally. History has it that companies with great leverages have higher levels of fixed costs. Consequently, such firms tend to experience more significant break-even points than companies without leverages Abhijeet, The only benefits Best Buy can have from such an arrangement is that its sales may increase beyond a break-even point.
The companies also face competition from Wal- Mart Super competition in most key markets. The fact that the primary system of management is decentralized; there are challenges of dependency on local management managerial skills, which may lead to failure of some stores. Decentralized management also lacks an established integration of systems. The wholesale business is not appropriate for many customers, and Best Buy risks are losing customers. There are also possible operation failures which can result in centralization operations in an attempt to establish standardization.
The current operating system comprises of both domestic and international markets. However, the domestic market experienced slower growth rate as compared to the international market. The international segment of the market mostly comprises of Canada and China, even though there are newcomers such as the United Kingdom. Future Shop and Best Buy deal in Consumer electronics and services such as installation and repair.
Future Shop was acquired in Geek Squad retails stores deal in computer technical services, and these are mostly standalone systems. These retail stores were acquired in Magnolia Audio Video specialized in home theater and related services and was acquired in Pacific Sales Kitchen and Bath specializes in remodeling homes and related products and services, and was acquired in Jiangsu Five Star Appliances were acquired in and these stores specialize in appliances and consumer electronics.
Speakeasy was acquired in and deals in information technology services. Since mid, consumers have been keen on their spending habits, cutting expenses on unnecessary items such as video games and flat screen televisions. In expanding its services to increase its profit gains, BBY has acquired Geek Squad, which specializes in computer and consumer electronics technician service subsidiary. Best Buy also started in-house Geek Squad areas and consequently there has been a cut down on the existing stand-alone Geek Squad locations in the US.
Some of the other services introduced to generate more income include Best Buy Mobile and Home Installation. Best Buy Services specializes in selling and servicing cellular phones. Having been launched in , Best Buy Mobile operated 14 stand-alone locations and more than in-store concept areas. It is Best Buy Mobile that joint a venture with Carphone Warehouse, the largest retailer of mobile phones in Europe, with the aim of setting up Best Buy stores in Europe.
Most of the installation sales are from consumers who purchase items such as flat televisions and require assistance in installing their new devices. As the leading retailer of consumer electronics, digital to analog migration across the globe will be beneficial to the firm.
Best Buy also partners with a company such as apple as a third party retailer of its products. In Conclusion Best Buy needs to reduce its overhead costs to avoid going out of business.
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Best Buy Company Inc. By Lauren Bradshaw. March 5, SWOT analysis will help to examine the condition of the company from internal as well as external. Tags: best buy company, business essays, custom essay, economics essays, example essay, sample essay, sound of music.
Read Best Buy Strategic Analysis free essay and over 88, other research documents. Best Buy Strategic Analysis. The overall analysis of Bets Buy’s new strategy focusing on “customer-centricity” is leading the company in the right direction to. Best Buy Co. was founded in by Richard Schulz under the name Sound of Music. The company headquarters are located in Minnesota, and the company is the largest retailer of consumer electrical appliances in the US with more than stores (Wikinvest, ).
View this case study on Strategic Analysis of Best Buy. Best Buy Co Inc is the U S based multi-channel consumer Electronics Company based at Richfield Minnesota. Free Essay: The overall analysis of Bets Buy's new strategy focusing on "customer-centricity" is leading the company in the right direction to grow.