In the recent years Walmart has been far our performing its top two competitors; Costco and Target. With a market cap of 212,195,024, Walmart had beaten its competitors who remain at 65,969,279 for Costco and 43,701,237 Target (NASDAQ, Competitors). This means that for Walmart, the total market of all of their goods and services far surpasses its top two market competitors. As investors, you may ask why Costco is second to Walmart’s regarding sales. Well when we take a closer look, we see that “Walmart’s treatment of its customers and employees has not always been then best.
GameStop Corp., is a Fortune 500 company (rank 311). It comprises of a global family of specialty retail brands that makes the most popular technologies affordable and simple. They sell new and pre-owned video game hardware; video game software; pre-owned and value video game products; video game accessories, such as controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, including downloadable content, network points cards, prepaid digital and subscription cards, and digitally downloadable software. The company also sells mobile and consumer electronics. The company was formerly known as GSC Holdings Corp.
The first would be to manage the company’s current assets. Best Buy currently holds 2 billion of the 18 billion of assets in cash
Best Buy Sound Of Music Inc. was founded by Richard M. Schulze and Gary Smoliak and started out as a home and car stereo store in Minnesota. He later bought out his partner began to expand the business by including appliances and VCRs. He decided to expand because he didn’t want customers that were only teens. He wanted people of all ages to come to his store and buy things. In 1983, he changed the name of the company to Best Buy Co., Inc. because it sounded more appealing to customers and potential customers and opened their first superstore.
As one of the leading providers of technology services, products, and solutions, Best Buy is currently doing well in the consumer electronics retail industry. Best Buy’s domestic and international presence gives them the ability to reach customers on an international level and offer them products through their physical as well as e-commerce stores. They are best known for their high-levels of customer interaction through their Geek Squad services, as well as through their online websites and mobile applications. Through our financial analysis of the organization, there are some key topics that we would like to bring to your attention. These key topics will allow us to address why you, as an investor, should choose Best Buy as a company of interest for future investments.
Best Buy hiring and the molding of employees is conducted by having great management and a system that is different than most companies. An employee need to the company will start at the bottom and be trained on how to sell the products in a traditional manner which is not by commission or pushy sales practices by promoting products and services to make the customer/customers family happier and entertained. 2. Best Buy will give its employees proper training, benefits packages (insurance, vacation time, sick leave and other benefits) that are competitive and within state and federal laws and regulations. This includes being in EEO, labor and respecting basic human rights through their code of ethics policy.
Best Buy has been one of the main leaders in electronic products for decades now. They have many locations all over North America. They have many products and resources that are very helpful whenever people have needed them. Electronics are not the only thing that they have. They also have kitchen appliances, musical instruments, movies, music, and video games.
Customers can go into a best buy store and can get assistance with upgrading their phone in the store’s mobile department. The retail side of the business works with supply chain unit to ensure that all stores; whether they are company owned or retail stores are stock with the latest products that are most popular and customer demanded (AT&T, 2013).
Mitchell wrote that “Best Buy announced that effective Dec. 15, 2008, nearly all of its corporate employees are eligible for a voluntary separation package in order to reduce its corporate expenses significantly.” (Mitchell) The recession of 2008 has had an impact on the company’s performance, but the Best Buy was able to survive since other rival companies exited the market. Best Buy features the latest tech gear and will continue to because of its agreement and relationship to the newest tech companies. “The CEO of Best Buy realized stores could ship packages to customers, serving as a mini-warehouse for the surrounding area allowing for more availability as well as speeding up shipping.”
According to the principles of retail marketing strategy, there are a few possible reasons why Sears became the premier and successful retailer in the country. To begin, retail marketing strategy that Sear applied became productive and effective
Best Buy sells a disparity of technology products. Televisions, computers, printers, tablets, washers, dryers, vacuums, refrigerators, sound systems both indoor and outdoor, amplifiers, movies, and music. Within the stores are mini stores. A section in the store dedicated to a specific product. For example, phones and service can be rented or purchased at Best Buy.
Lower prices were achieved by price matching; customers are offered the same price they find online for identical products. Best Buy did a good job of remaining relevant and drawing customers into stores. However, they also intertwined their online sales into the stores profits. Most online orders are now picked up either in store or are shipped from a store. This increases store profits even though nobody actually stepped foot inside a store (FoxBusiness,
To ensure success this would be implemented nationwide in 1026 Best Buys stores. One specialist would be employed per store with a yearly salary
Situational Analysis Currently, Best Buy is facing significant challenges and needs to make drastic changes to its business strategy. This is particularly important as the “digital world” becomes the reality of retail. Best Buy needs to strategize to be competitive with online retailers like Amazon, as well as other Big Box retailers like Walmart and Target. Consumers are looking for the virtual customer experience and a one-stop shop for their needs. Best Buy continues to build exclusive brands within the electronics industry, to compete with the likes of Apple.
marginal compared to that of shopping first hand because people generally don't want second hand electronics. This is because as technology ages it becomes obsolete. Threat of new entry (Low): The threat of new entry is classified as low for the retailers in the electronic industry. Joining the market to compete with developed retailers takes not only a large investment, in which most people don't have the resources to obtain, but also it takes time for consumers to become devoted to your company. Bargaining Power of Suppliers (High): With having the top manufactures like Sony, Apple and Samsung providing the public with the latest and greatest invention.
