Best Buy has grown to more than 1400 stores and has had tremendous success propelling the company upward and giving them the capability to become the leading retailer for electronics (BestBuy.com). The success by the company in the early 90’s and 2000’s gave way for the organization to be a $50 billion corporation. Best Buy’s success has ultimately pushed stores like Circuit City, CompUSA, and Borders out of business and given way to increase market share and profits. Best Buy currently has some major competition with Amazon and online sales. Best Buy has had successes overseas; however, it has failures in major countries because of the lack of research. In the past the company has failed to capitalize on the trend toward online sales, and instead focused its strategy on its physical locations, assuming that consumers preferred to experience the actual electronics purchases. The company was correct, however, what it didn’t anticipate was the concept of “showrooming”, which is people shopping at the physical locations and then leaving the store and taking …show more content…
The company expanded into Canada and had some success that they may be able to duplicate in other countries provided it is the right time. The answer as to why the northern neighbor has been so successful could help Best Buy explore its future global strategy. The reasons Best Buy has been victorious are that Best Buy Canada has an edge over its US operations. Best Buy entered Canada by acquiring a successful electronics firm known as, ‘Future Shops’. Future Shops had brand recognition for high value products and prices along with that the company had practical warranties and service packages. At this time, out of the 225 stores operated by Best Buy Canada, about 145 of those stores are the Future Shops (Kirk, 2012). As we saw with the UK and Chinese markets brand recognition is a huge factor when entering in another