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This sample case study , dissects the corporation and its recent growth and achievements. By , the company had expanded its range of product offerings to include home appliances and VCRs, and in the following three years, would change its name to Best Buy Co. Schulze had realized that the buyers of such equipment tended to be young, and that the audio equipment market was increasingly saturated with other brands.
These strategic shifts allowed the company to survive vicious price wars in the consumer electronics market in the late s, and later allowed it to emerge as the consumer electronics hegemon in the s, though many factors contributed to several years of mediocre earnings throughout that decade Funding Universe. In addition to continuing to adapt its offerings within North American markets, the company is continuing to pursue market development efforts within international markets, mostly in Asia, Europe, and Latin America.
These efforts might appear as though Best Buy is present in a strong position. Amazon and other retailers that focus on online sales posses a competitive advantage over brands with retail storefronts like Best Buy: The practice of showrooming appears to be spreading to consumer markets in other developed nations as well: In addition to competing with these smaller chains, Best Buy continues to compete in the consumer electronics retail sector with companies such as Staples and Office Depot, which offer a small selection compared to Best Buy of competitively priced electronics and accessories.
Other competitors, particularly in the areas of laptop computers and televisions, include retailers such as Costco and Wal-Mart Funding Universe. However, all brick and mortar retailers are facing increasing pressures from online retailers, which given their comparably lower operating costs, can accept much lower profit margins on each item that they sell. Amazon is by far the most formidable player in this market, given that it has assembled a massive global network of highly automated warehouses, acquired successful online retailers like Zappos and Woot!
These advantages have helped to cultivate a considerable brand affinity for Amazon among consumers. Additionally, Amazon has carved into the markets for media that big box stores like Best Buy have depended upon for revenue — Amazon offers a large catalog of digital music, as well as an ever-expanded catalog of movies and television shows that can be streamed , rented, or purchased at low price points.
As a response, Amazon has initiated an effort to expand its physical footprint by placing new distribution centers near key markets where in the past, a physical presence would have triggered a need for consumers to pay sales taxes. This push is part of an effort to close one of the biggest gaps between Amazon and brick and mortar retailers: Amazon has already rolled out same delivery for its most popular items in 10 US cities, and expects to expand this program as rapidly as possible, wherever it is financially tenable.
Though a sales force of some sort needs to be maintained, it needs to consist of solely top-performers from the existing sales force. These measures should only be implemented in a way that is comparatively less expensive than employing the workforce that they are intended to compensate for.
While scaling back traditional retail operations, Best Buy needs to aggressively expand its online sales operations. If the company is going to survive the competitive onslaught wrought by online retailer competitors, Best Buy must expand its online sales offerings, focus on improving warehouse and shipping logistics efficiency, and reduce its markup on items sold online. First, consumers should be directed to kiosks throughout the store to carry out an online purchase after examining an item on the showroom floor.
Alternatively, a Best Buy mobile device app could allow consumers to scan a QR code, then purchase the item without utilizing a kiosk. Second, the stores should avoid alienating customers that intend to make impulse purchases by maintaining a limited inventory of items on-hand.
These items would be priced somewhat higher than online items, in order to reflect the additional overhead costs associated with maintaining an in-store inventory. In order to lower overhead costs and compete with online retailers, Best Buy needs to massively reduce the sprawling size of their stores, which will enable savings on rent.
This can be achieved by centralizing inventory warehousing to distribution centers that handle both shipping of online orders, as well as delivery of product inventory to stores.
Distribution centers should be established in low-rent locations that enable expedient delivery of products to store locations. This will allow Best Buy to consolidate the size of their existing retail operations by drastically reducing the number of items that are kept in-stock at any given point in time.
Additionally, this should allow the company to reduce the number of employees necessary to handle issues such as back-of-house warehousing, and stocking of store shelves. Retrieved October 24, , from BestBuy.
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Beat Buy Company is the largest retail company, originated in United States. It was established in with the name “Sound of Music” and because of some natural disasters it renamed to “Best Buy Company” in “The company opened its first store in , and called it “Sound of Music”.
Though most of the company’s operations are maintained under the Best Buy brand, the company also operates a variety of niche brands, some of which are integrated into Best Buy’s retail stores, others of which are freestanding retail storefronts (Best Buy Co., Inc.).5/5(2). Useful sample research paper on Best Buy topics. Free example of Best Buy research proposal paper. Read tips how to write good academic research papers about this company.
Analysis For Best Buy Company Best Buy ACCOUNTING BEST BUY FINAL PROJECT General Student’s Discussion and Analysis History: Best Buy Inc is a leading provider of consumer electronics. There are also partnerships between Best Buy and some other companies such as Carphone Warehouse, which is the largest retailer of mobile phones. We will write a custom essay sample on Best Buy Project Company Analysis specifically for you. for only $16 synonyms and word definitions to make your research paper well-formatted and your.