Best Buy maintains a thorough knowledge of its competitors by understanding how its customers rank competitors as it tries to launch a product into the market. Competitive analysis involves identifying the competitors’ strengths and weaknesses in addition to developing effective competitive strategies in the target market. One of the competitors is Wal-Mart which maintains a large share of electronics market. Regarding product features, Best Buy stocks a variety of high-end and low-tech electronics while Wal-Mart is not as professional as Best Buy in electronics sales.
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.
The competitive barriers present to Best Buy include cheap products from Wal-Mart while potential competitors may decide to
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As such, strategic marketing is essential in achieving maximum possible differentiation over competitors to ensure that consumer needs are met and thus attain a competitive advantage and capitalize on corporate capabilities and strengths. Best Buy uses variables, such as type of consumer, purchasing avenue, and price sensitivity to segment its target market. The company focuses on price sensitivity to ensure that it caters for every segment depending on the preferences of the customers. Some customers would want to go for the high-end products while others will choose the most affordable in the pack, for instance, the millenials who are college-educated would want to associate with quality