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Best Buy Marketing Plan

1071 Words5 Pages

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. However, with stockholders hesitant to invest in Buy Best, even with positive changes in the business structure, more needs to be done. Best Buy needs to not only improve their …show more content…

In particular, the businesses with exceptional customer service are affected most. This way of shopping entails customers coming to the store to test out an item they are looking to buy, gathering information, and then looking online for the best price. This is causing major problems to the company’s bottom-line.
Finally, rapids change in technology is making it difficult to turn a profit. Consumer electronics tend to have a short shelf life, as models are continually being updated and improved upon. This causes problems due to having to reduce the price of older models, as consumers don’t want to pay the same price as the newer models. Consumers also rationalize that they don’t want to buy an older model when there is a new model available. This leads to tighter margins overall, and a need to be very precise when forecasting inventory needs for these types of …show more content…

With the advent of the internet, buyers have many resources available to research products, and compare prices. This has led to companies trying to overtake the market by offering the products at very low prices. This is particularly easier for companies that do not need to maintain a store front. This has led consumers to be less brand loyal, and seek out the best price available. With the profit margins high for consumer electronics, companies are comfortable to dip into those margins to be a low-price leader. Since the industry is mature, many of the companies have strong advertising and market reach capabilities to put the product and prices in front of the

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