Best Buy Swot Analysis

INTRODUCTION

Best Buy Co., Inc. provides consumer electronics, home office products, entertainment products, appliances and related services. It operates through two business segments: Domestic and International. The Domestic segment comprised of the operations in all states, districts and territories of the U.S., operating under various brand names: Best Buy, Best Buy mobile, Geek Squad, Magnolia Audio Video, Napster, and Pacific sales

Best Buy company was founded by Richard Schulze in 1966 and was called Sound of Music before the name changed to Best Buy in 1983. Being the leader provider for consumer electronics, it has generated nearly $40 billion annually. It has more than 1,500 stores in North America, including large-format and Best

Online shopping has made the consumer smarter in terms of shopping, it is easier for the customer to browser electronic goods with the palm of their hands, browsing thousands of products while never to have to leave the house.

Amazon is one of Best Buy biggest competitors. The store offers thousands of products, ranging from textile to electronic products. Amazon made it easier to shop by cutting shipping costs, introducing its prime features, and also avoiding certain taxes to products.

ANALYSIS

Best Buy had to adapt to these new technologies by introducing its mobile application and website to make purchases, the pros were that they could offer the same array of products online and give the general consumer a broad idea on what the store had in their inventory. The main con is that shipping costs were high and customers were seeing this as a hassle because shipping made them think twice about buying their

The company realized that by getting their customers apply the price matching policy, they would prefer the easiness of making the product cheaper at the store, giving the customer the sense of a deal, and still make the profit. Domestic same store sales fell 2% while sales in consumer electronics fell 2.5% (McGrath 2014)

Consumers are increasingly researching and buying online, As a result, traffic to the brick and mortar stress continued to decline, and the remaining traffic was using the retailers to discover new products and researching them online.

By further analyzing Best Buy alternatives to respond to online shopping, it is possible that Best Buy wants to offer more to the customer other than its store and the electronic goods they sell. The company can be more dynamic into its sales strategies and customer retention alternatives, giving the customer more ownership and leasing options to take away the burden of ownership that some customer