2.0 SITUATION ANALYSIS 2.1 Industry Overview Best buy Co. Inc. is a public limited company listed in New York stock exchange (NYSE:BBY) with 1,779 locations in United Stores, it is the largest operator of consumer electronics stores. Maintaining its reputation also in the world’s ecommerce market even in the time crisis when many other big names like circuit city and Radio shack have collapsed, it survived and thrived in today’s highly competitive market. For full-year 2015, Best Buy’s diluted EPS (earnings per share) increased by 128% to $3.49—compared to $1.53 last year. Though there is a fall in domestic and international revenue for the company, it is maintaining a strong competition in e-commerce market. Best buy in this radically changing …show more content…
• Company revenue sales enormously depends on sales from luxury items such as video games in absence of which there will be huge slide in company’s sales. • Best buy is having limited profit margin which was just 1.92% in 2015. Opportunities • There has been vast scope of growth in the electronic market which includes smart phones, and video games. • There are opportunity to improvise online retailing as main part of the company’s future instead of spending capital over physical stores as there is growing popularity in e-commerce market. • The collapse of big competitors like Radio Shack and Circuit City leaves Best Buy as the only major consumer electronic retailer in the US market. • The company provides its consumers a large product line to choose from and therefore making them more loyal towards the company. Threats • There has been aggressive online competition by Amazon, and ebay both in brown goods and other electronic field like video games • It is very tough to maintain the loyalty of consumers due to the availability of large number of online competition with much cheaper