Best Buy: Big Box Store
This paper provides an overview of Best Buy, a well-known retail company, focusing on its background, mission, operations, and benefits to customers. Furthermore, it examines how the four quadrants of the balanced scorecard apply to Best Buy's operations and performance. Best Buy is an American multinational consumer electronics retailer founded in 1966 under the name Sound of Music by Richard M. Schulze and Gary Smoliak. The company initially specialized in audio equipment before expanding into other consumer electronics categories. In 1983, the company changed its name to Best Buy Co., Inc. and adopted its iconic yellow tag logo.
Due to it being the holiday season, many retailers are engaging in a “price war.” This means lowering their prices as much as they can to attract customers while still making a profit. When a producer lowers their prices the consumers will want to purchase more, according to the law of demand. The fact that attracting customers to your store means diverting them from another is what initiates the “war.” The fiercest competition right now is between Best Buy, Wal-Mart, Target, and the online shopping giant, Amazon.
Best Buy should implement the centricity model on the home goods market that demanded the same customer focus and in-store shopping experiences as the electronics department. This meant that stocking product catering to customer needs and wants in the demographic location. For instance, if the store situated in a more rural population then stocking of more home décor products maybe the right solution, whereas stores in heavy urban populated area then stocking on space-saving home good products may make sense. In addition, Best Buy will train employees to be expert in the segment market. Furthermore, adding services such as free delivery for home good products such as appliances and furniture will enhance customer satisfaction and experiences.
Dell currently offers a huge array of products including tablets, all-in-ones, notebooks, desktops, servers and networking products, monitors, printers, software, and many additional accessories (“Dell Offical Site – The”, n.d.). The addition of EMC would add cloud based computing, mobile and security software, and storage solutions (Dell, 2015). When Dell sold primarily through their website, the majority of sales were limited to the US, but with their shift to using retailers for distribution, the whole world opened up (“Dell”, n,d,). Staples, Future Shop and Best Buy provide Canadian customers with access to the Dell name. Trocadero, Currys and Tesco distribute throughout the UK, while Harris Technology, Dick Smith Electoronics and The Good Guys provides Australian distributorship.
Client Best Buy is the nation’s largest-volume specialty retailer of consumer electronics, personal computers, entertainment software and appliances. It operates more than 400 retail stores in 41 states as well as www.bestbuy.com. The bricks-and-clicks retailer is headquartered in Eden Prairie, Minn. Best Buy is a Fortune 500 company with earnings of $347 million in 2000.
Getting the Best Deal When Shopping at Best Buy Best Buy Co., Inc. is a well-known retailer that sells home office products, entertainment software, consumer electronics and many other related services. The company has divided its operations into two segments: a) The Domestic Segment b)
Best Buy is a retailer of consumer electronics with 1,363 stores in the US, 187 stores in Canada and 25 stores in Mexico as of January 2017. The company employs about 125,000 people and its sales staff are non-commissioned, which is unusual for retail industry. The company was founded by Richard M. Shulze in Minnesota in 1966 as Sound of Music, retailer of audio equipment (stereos). Initially, it’s target customers were teenagers. The store was successful, and owners quickly expanded.
Personally I have witnessed Best Buy stores close because Walmart appeared within feet of their locations. Over coming them as the obstacle is where I would lay my focus. Moving towards a more prestige
The pricing strategies used by Best Buy are consistent with what Wal-Mart uses. The two competitors base their product prices on affordability while a potential competitor would also seek to lower its prices to compete with these two rivals. However, the distribution of best Buy’s products is both online and in physical stores, Wal-Mart uses the same strategies for its products. However, the fiercest competitors will focus on online shopping as more people are getting connected digitally.
One of the company’s items of focus is to maintain retail presence with an increased emphasis of online retail sales. Also, Best Buy is looking at downsizing their brick and mortar stores to a smaller footprint, such as
They have a great variety of products and that’s is also a good point of view in the relation with costumers and their good image. Best Buy have good relationship not only with costumers, also with the most known brands, as Apple. It was in 2015 the second store in the United State to sell the Apple Watch, after the
The next is Citi located in New York, spanning 3.6 million square feet (O’Connell). Amazon has consequently become the dominant online retailer, creating a hub where products from thousands of companies are centralized, and then distributed to consumers all over the globe (Rosenberg and González). 43% of all online sales go through Amazon
Amazon Amazon is an American multinational e-commerce company and it was established in 1994 by Jeffrey p.Bezoz and it’s the largest online shop in the world. When there were a numerous of online retailers that were not able to survive in 1990 amazon managed to survive in that time. It 's the 11 'st most searched site the world over also amazon acquired many online retailers such as “pets.com, IMDb, CDNow”. Jeff bezos the founder of Amazon converted his garage into a warehouse and then Jeff Bezos was able to establish the Amazon as an online retailer while concentrating on core values .
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