BEST BUY
2010
COOK’S CONSULTANTS
Specializing in Consumer Electronics Industry
Bert Van Den Hooff
Lisa Fischer
Shahar Abrams
Megan Broll...
OVERVIEW
1. Strategic Issues
	 	 A. Corporate Strategy
	 	 B. Industry Analysis
	 C. Competitive Strategy
	 	 D. SWOT Anal...
IN REVIEW: THE YEAR 2009
CORPORATE
STRATEGY
CUSTOMERS
CORPORATE STRATEGY
Individual
Consumers
Age 16-35
Age 35-60
“Technology
Novices”
Small
Businesses
CORPORATE STRATEGY
BUSINESS + BUSINESS FIT
Electronic
Repairs
Discretionary

Consumer
Electronics
Appliances
Entertainment...
CORPORATE STRATEGY
SUBSIDIARIES
MAGNOLIA
AUDIO VIDEO
GEEK
SQUAD
FUTURE
SHOP
PACIFIC
SALES
CORPORATE STRATEGY
CORPORATE GOALS
“Make technology
deliver on its
promises to
customers”
Sustained
growth and
earnings
Le...
CORPORATE STRATEGY
CORPORATE STRATEGY
CONCENTRIC
DIVERSIFICATION
• Common Customer
• Common Technology
• Common Channels
•...
INDUSTRY
ANALYSIS
INDUSTRY GROUP MAP
INDUSTRY ANALYSIS
HIGH
PRICE
PRODUCT LINE BREADTH MANY
GameStop
Dell
Best Buy
Circuit City
RadioShack
L...
BARRIERS TO ENTRY
INDUSTRY ANALYSIS
Economies of Scale
Differentiation
Total Capital Requirements
Switching Costs: Individu...
BARRIERS TO ENTRY
INDUSTRY ANALYSIS
Economies of Scale
Differentiation
Total Capital Requirements
Switching Costs: Individu...
BARRIERS TO EXIT
INDUSTRY ANALYSIS
Specialized Assets
Fixed Costs
Management Commitment
Contractual Commitment
High
High
L...
BARRIERS TO EXIT
INDUSTRY ANALYSIS
Specialized Assets
Fixed Costs
Management Commitment
Contractual Commitment
High
High
L...
RIVALRY
INDUSTRY ANALYSIS
Concentration
Growth Rate
Fixed Costs
Differentiation
Switching Costs
Exit Barriers
High
Steady
H...
RIVALRY
INDUSTRY ANALYSIS
Concentration
Growth Rate
Fixed Costs
Differentiation
Switching Costs
Exit Barriers
High
Steady
H...
SUBSTITUTES
INDUSTRY ANALYSIS
Amazon
eBay
WalMart
Target
Costco
iTunes
Netflix
Electronic

E-commerce
Retailers
Big Box Gen...
COMPLEMENTORS
INDUSTRY ANALYSIS
Computer Software (Computers)
Video Games (Video Game System/TV)
Complementors Within Itse...
INDUSTRY GLOBALIZATION
INDUSTRY ANALYSIS
HIGH
Forces For

Global
Coordination/

Integration
MANY
LOW
FEW
MULTINATIONAL
For...
INDUSTRY GLOBALIZATION
INDUSTRY ANALYSIS
NATIONAL GLOBAL
Economies of Scale
Customer Needs
Competition
Channels
Transporta...
BUYER + SUPPLIER POWER
INDUSTRY ANALYSIS
Relative Industry Concentration
Switching Costs
Availability of Substitutes
BUYER...
BUSINESS
LEVEL
STRATEGY
BUSINESS LEVEL STRATEGY
STRATEGIC
RESOURCES + CAPABILITIES
Main store + acquisitions
Employees
Customer data Info
Brand eq...
Customer Centricity strategy
Brand name + reputation
Acquisitions
SUSTAINABILITY
BUSINESS LEVEL STRATEGY
COMPETITIVE ADVANTAGE
• no commission
• investment in employee training
• employees are product experts/consumer educators...
COMPETITIVE DISADVANTAGE
BUSINESS LEVEL STRATEGY
COMPETITIVE DISADVANTAGE
Not as many
store locations
BUSINESS LEVEL STRATEGY
COMPETITIVE DISADVANTAGE
Not as many
store locations
No low cost
structure
BUSINESS LEVEL STRATEGY
COMPETITIVE DISADVANTAGE
Not as many
store locations
No low cost
structure
Not as
specialized
BUSINESS LEVEL STRATEGY
COMPETITIVE DISADVANTAGE
Not as many
store locations
No low cost
structure
Not as
specialized
A lot of
branches
Best Buy
A...
GENERIC BUSINESS STRATEGY
Uniqueness
Broad Target
Market
BUSINESS LEVEL STRATEGY
GENERIC BUSINESS STRATEGY
Uniqueness
Broad Target
Market DIFFERENTIATION
BUSINESS LEVEL STRATEGY
WS
O T
Internal
External
WS
O T
S
• Differentiation strategy
• Expansive reach (& financial performance) through acquisitions
• Customer information datab...
S
SWOT ANALYSIS
Internal
W
SWOT ANALYSIS
• Shorter product life cycles increase training costs
• Decline in operating margins
• Fewer stores relati...
W
SWOT ANALYSIS
Internal
O
SWOT ANALYSIS
• Provide more value-added services in store
• Increase global presence as domestic market matures
• Move ...
External
T
SWOT ANALYSIS
• Information available to consumers = direct threat to Best Buy’s
strategic model and core compe...
GLOBAL MARKET STRATEGY
KEY STRATEGIC CHALLENGE
“How can Best Buy continue to have innovative
products, top-notch employees...
ALTERNATIVES
!
EVALUATIONS
+
STRATEGIC ALTERNATIVES + EVALUATIONS
DIGITAL
ACQUISITIONS 

MARKETING
INITIATIVE
ALTERNATIVES
ONLINE CUSTOMER
SERVICE/LEAR...
STRATEGIC ALTERNATIVES + EVALUATIONS
CONSISTENT WITH
STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET ...
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 1
DIGITAL
ACQUISITIONS
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 1
• Anticipates growth in online
streaming/gaming market
• Differentiates ...
STRATEGIC ALTERNATIVES + EVALUATIONS
CONSISTENT WITH STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET ...
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 2
!
• Customer Oriented Online Shopping Assistance
• Live online sales re...
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 2
• Enhance customer experience
• Maintain online competitive advantage
•...
STRATEGIC ALTERNATIVES + EVALUATIONS
CONSISTENT WITH STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET ...
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 3
GLOBAL
EXPANSION
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 3
CONSPROS
GLOBAL
EXPANSION
• Large untapped demand
• High potential grow...
STRATEGIC ALTERNATIVES + EVALUATIONS
CONSISTENT WITH STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET ...
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 4
MARKETING
INITIATIVE
STRATEGIC ALTERNATIVES + EVALUATIONS
ALTERNATIVE 4
• Allows for re-energization of Best Buy
brands
• Gives rationale for h...
STRATEGIC ALTERNATIVES + EVALUATIONS
EVALUATION
OF ALTERNATIVES
MARKETING
INITIATIVE4
CONSISTENT WITH STRATEGY + CORE COMP...
CONSISTENT WITH

STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET TRENDS
PROFITABILITY
COST EFFECTIVEN...
CONSISTENT WITH

STRATEGY + CORE COMPETENCIES
GROWTH POTENTIAL
CONSISTENT WITH MARKET TRENDS
PROFITABILITY
COST EFFECTIVEN...
STRATEGIC ALTERNATIVES + EVALUATIONS
SELECTED ALTERNATIVE
STRATEGIC ALTERNATIVES + EVALUATIONS
SELECTED ALTERNATIVE
ONLINE CUSTOMER
SERVICE/LEARNING
EXPERIENCE
STRATEGIC ALTERNATIVES + EVALUATIONS
SELECTED ALTERNATIVE
Year E-commerce
Revenue
% change Total
Commerce
2006 2,972 13.9%...
ACTION
PLAN
ACTION PLAN
WHO IS RESPONSIBLE?
• Information Technology
ACTION PLAN
• VP of Human Resources
• VP of Operations • eCommerce
SENIOR EXE...
TIMELINE
TIMELINE
3 MONTHS
• Which stores
to close
• Outsource?
• Operational +
HR logistics
1 RESEARCH
TIMELINE
5 MONTHS
2
• Development
• Training
• Create marketing
campaign
PREPARATION
3 MONTHS
• Which stores
to close
• Ou...
TIMELINE
5 MONTHS
2
• Development
• Training
• Create marketing
campaign
PREPARATION
3 MONTHS
• Which stores
to close
• Ou...
TIMELINE
5 MONTHS
2
• Development
• Training
• Create marketing
campaign
PREPARATION
3 MONTHS
• Which stores
to close
• Ou...
MAJOR IMPEDIMENTS
• Potential loss of excellent customer service
(not same as in person face-to-face)
!
• Limited ‘barrier...
CONTINGENCY PLANS
• Patents
• If all fails, dissolve BestBuy U and redistribute
employees to brick and mortar stores
ACTIO...
CONCLUSION
ACTION PLAN
“How can Best Buy continue to have innovative products, top-
notch employees, and superior customer...
THANK YOU
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GWU Strategy Formulation & Implementation--Best Buy Case Study: Spring 2014

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GWU Strategy Formulation & Implementation--Best Buy Case Study: Spring 2014

  1. 1. BEST BUY 2010
  2. 2. COOK’S CONSULTANTS Specializing in Consumer Electronics Industry Bert Van Den Hooff Lisa Fischer Shahar Abrams Megan Brolley Furkan Cizmeci
  3. 3. OVERVIEW 1. Strategic Issues A. Corporate Strategy B. Industry Analysis C. Competitive Strategy D. SWOT Analysis E. Strategic Challenges 2. Strategic Alternatives + Evaluation A. Possible Alternatives B. Evaluation of Alternatives C. Selected Alternatives ! 3. Action Plan ! 4. Questions
  4. 4. IN REVIEW: THE YEAR 2009
  5. 5. CORPORATE STRATEGY
  6. 6. CUSTOMERS CORPORATE STRATEGY Individual Consumers Age 16-35 Age 35-60 “Technology Novices” Small Businesses
  7. 7. CORPORATE STRATEGY BUSINESS + BUSINESS FIT Electronic Repairs Discretionary Consumer Electronics Appliances Entertainment Platforms
  8. 8. CORPORATE STRATEGY SUBSIDIARIES MAGNOLIA AUDIO VIDEO GEEK SQUAD FUTURE SHOP PACIFIC SALES
  9. 9. CORPORATE STRATEGY CORPORATE GOALS “Make technology deliver on its promises to customers” Sustained growth and earnings Leader in service 1 2 3
  10. 10. CORPORATE STRATEGY CORPORATE STRATEGY CONCENTRIC DIVERSIFICATION • Common Customer • Common Technology • Common Channels • Customer Centricity Strategy
  11. 11. INDUSTRY ANALYSIS
  12. 12. INDUSTRY GROUP MAP INDUSTRY ANALYSIS HIGH PRICE PRODUCT LINE BREADTH MANY GameStop Dell Best Buy Circuit City RadioShack LOW FEW Amazon WalMart
  13. 13. BARRIERS TO ENTRY INDUSTRY ANALYSIS Economies of Scale Differentiation Total Capital Requirements Switching Costs: Individual Switching Costs: Business Advertising High High High Low High High
  14. 14. BARRIERS TO ENTRY INDUSTRY ANALYSIS Economies of Scale Differentiation Total Capital Requirements Switching Costs: Individual Switching Costs: Business Advertising High High High Low High High HIGH BARRIERS TO ENTRY
  15. 15. BARRIERS TO EXIT INDUSTRY ANALYSIS Specialized Assets Fixed Costs Management Commitment Contractual Commitment High High Low High
  16. 16. BARRIERS TO EXIT INDUSTRY ANALYSIS Specialized Assets Fixed Costs Management Commitment Contractual Commitment High High Low High HIGH BARRIERS TO EXIT
  17. 17. RIVALRY INDUSTRY ANALYSIS Concentration Growth Rate Fixed Costs Differentiation Switching Costs Exit Barriers High Steady High High Low High Low Rivalry Low Rivalry High Rivalry Low Rivalry High Rivalry High Rivalry
  18. 18. RIVALRY INDUSTRY ANALYSIS Concentration Growth Rate Fixed Costs Differentiation Switching Costs Exit Barriers High Steady High High Low High Low Rivalry Low Rivalry High Rivalry Low Rivalry High Rivalry High Rivalry MODERATE-LOW RIVALRY
  19. 19. SUBSTITUTES INDUSTRY ANALYSIS Amazon eBay WalMart Target Costco iTunes Netflix Electronic E-commerce Retailers Big Box General Merchandise Retailers Digital Content Distributers
  20. 20. COMPLEMENTORS INDUSTRY ANALYSIS Computer Software (Computers) Video Games (Video Game System/TV) Complementors Within Itself Technology Payment Processing Industry ShippingAcquisition of Geek Squad INTERNAL EXTERNAL
  21. 21. INDUSTRY GLOBALIZATION INDUSTRY ANALYSIS HIGH Forces For Global Coordination/ Integration MANY LOW FEW MULTINATIONAL Forces For Responsiveness/ Differentiation TRANSNATIONALGLOBAL
  22. 22. INDUSTRY GLOBALIZATION INDUSTRY ANALYSIS NATIONAL GLOBAL Economies of Scale Customer Needs Competition Channels Transportation Costs Product Standards (country vs. industry)
  23. 23. BUYER + SUPPLIER POWER INDUSTRY ANALYSIS Relative Industry Concentration Switching Costs Availability of Substitutes BUYER SUPPLIER electronics consumers
  24. 24. BUSINESS LEVEL STRATEGY
  25. 25. BUSINESS LEVEL STRATEGY STRATEGIC RESOURCES + CAPABILITIES Main store + acquisitions Employees Customer data Info Brand equity Reputation Geek Squad Employee knowledge Multiple brand names INTANGIBLETANGIBLE
  26. 26. Customer Centricity strategy Brand name + reputation Acquisitions SUSTAINABILITY BUSINESS LEVEL STRATEGY
  27. 27. COMPETITIVE ADVANTAGE • no commission • investment in employee training • employees are product experts/consumer educators • acquisitions that match customer lifestyle groups • industry-wide strategic target • product variety • high economies of scale BUSINESS LEVEL STRATEGY CUSTOMER SERVICE ORIENTED
  28. 28. COMPETITIVE DISADVANTAGE BUSINESS LEVEL STRATEGY
  29. 29. COMPETITIVE DISADVANTAGE Not as many store locations BUSINESS LEVEL STRATEGY
  30. 30. COMPETITIVE DISADVANTAGE Not as many store locations No low cost structure BUSINESS LEVEL STRATEGY
  31. 31. COMPETITIVE DISADVANTAGE Not as many store locations No low cost structure Not as specialized BUSINESS LEVEL STRATEGY
  32. 32. COMPETITIVE DISADVANTAGE Not as many store locations No low cost structure Not as specialized A lot of branches Best Buy ACQUISITIONS BUSINESS LEVEL STRATEGY
  33. 33. GENERIC BUSINESS STRATEGY Uniqueness Broad Target Market BUSINESS LEVEL STRATEGY
  34. 34. GENERIC BUSINESS STRATEGY Uniqueness Broad Target Market DIFFERENTIATION BUSINESS LEVEL STRATEGY
  35. 35. WS O T Internal External WS O T
  36. 36. S • Differentiation strategy • Expansive reach (& financial performance) through acquisitions • Customer information database • Extensive level of service • Large global presence • Increase in net income • Steady increase in sales SWOT ANALYSIS Internal
  37. 37. S SWOT ANALYSIS Internal
  38. 38. W SWOT ANALYSIS • Shorter product life cycles increase training costs • Decline in operating margins • Fewer stores relative to competitors (ie. WalMart + GameStop) • A LOT of money needs to go into research • Relatively new CEO, Brian Dunn (2009) • Large debt and reduced available cash Internal
  39. 39. W SWOT ANALYSIS Internal
  40. 40. O SWOT ANALYSIS • Provide more value-added services in store • Increase global presence as domestic market matures • Move into digital streaming space by acquisitions or expansions • Increasing complexity and functionality of new technology • Products plays into competitive advantage. External
  41. 41. External T SWOT ANALYSIS • Information available to consumers = direct threat to Best Buy’s strategic model and core competency • Downward price pressure on technology products = less consumer purchase decision time • Shorter tech product life cycles increases employee training costs • Regulation changes about deferred interest financing could have a large negative effect on revenues. • Price Matching Controversy
  42. 42. GLOBAL MARKET STRATEGY KEY STRATEGIC CHALLENGE “How can Best Buy continue to have innovative products, top-notch employees, and superior customer service while facing increased competition, operational costs, and financial stress?”
  43. 43. ALTERNATIVES ! EVALUATIONS +
  44. 44. STRATEGIC ALTERNATIVES + EVALUATIONS DIGITAL ACQUISITIONS MARKETING INITIATIVE ALTERNATIVES ONLINE CUSTOMER SERVICE/LEARNING EXPERIENCE GLOBAL EXPANSION 1 2 3 4
  45. 45. STRATEGIC ALTERNATIVES + EVALUATIONS CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION VIABILITY MATRIX OF ALTERNATIVES POINT VALUE SCALE 1-4 X — 100% 50% 0% POINT % 4 3 3 2 2 1
  46. 46. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 1 DIGITAL ACQUISITIONS
  47. 47. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 1 • Anticipates growth in online streaming/gaming market • Differentiates product portfolio from competitors CONSPROS • Requires large capital investment • Could cannibalize brick and mortar compact-disc sales DIGITAL ACQUISITIONS
  48. 48. STRATEGIC ALTERNATIVES + EVALUATIONS CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 9.5 EVALUATION OF ALTERNATIVES DIGITAL ACQUISITIONS1 — X — —
  49. 49. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 2 ! • Customer Oriented Online Shopping Assistance • Live online sales representatives • Online tutorials • Business cards with usernames ONLINE CUSTOMER SERVICE/LEARNING EXPERIENCE
  50. 50. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 2 • Enhance customer experience • Maintain online competitive advantage • Lowers HR costs • Challenges with not face-to-face teaching • Customer is not able to ‘sample’ product CONSPROS ONLINE CUSTOMER SERVICE/LEARNING EXPERIENCE
  51. 51. STRATEGIC ALTERNATIVES + EVALUATIONS CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 12 EVALUATION OF ALTERNATIVES ONLINE CUSTOMER SERVICE/LEARNING EXPERIENCE2 X — —
  52. 52. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 3 GLOBAL EXPANSION
  53. 53. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 3 CONSPROS GLOBAL EXPANSION • Large untapped demand • High potential growth • Consistent with strategy and core competency • Established presence and knowledge base • Expensive and risky • Cultural barriers • Competition from large global competitors
  54. 54. STRATEGIC ALTERNATIVES + EVALUATIONS CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 10 EVALUATION OF ALTERNATIVES GLOBAL EXPANSIONS3 — — — X
  55. 55. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 4 MARKETING INITIATIVE
  56. 56. STRATEGIC ALTERNATIVES + EVALUATIONS ALTERNATIVE 4 • Allows for re-energization of Best Buy brands • Gives rationale for higher prices • Fulfilling corporate goals CONSPROS • Expensive • People already familiar with Best Buy MARKETING INITIATIVE
  57. 57. STRATEGIC ALTERNATIVES + EVALUATIONS EVALUATION OF ALTERNATIVES MARKETING INITIATIVE4 CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 9 — — X —
  58. 58. CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 9.5 12 10 9 EVALUATION OF ALTERNATIVES 1 2 3 4 — X — — X — — — — — X — — X —
  59. 59. CONSISTENT WITH STRATEGY + CORE COMPETENCIES GROWTH POTENTIAL CONSISTENT WITH MARKET TRENDS PROFITABILITY COST EFFECTIVENESS EASE OF IMPLEMENTATION TOTAL 9.5 12 10 9 EVALUATION OF ALTERNATIVES 1 2 3 4 — X — — X — — — — — X — — X —
  60. 60. STRATEGIC ALTERNATIVES + EVALUATIONS SELECTED ALTERNATIVE
  61. 61. STRATEGIC ALTERNATIVES + EVALUATIONS SELECTED ALTERNATIVE ONLINE CUSTOMER SERVICE/LEARNING EXPERIENCE
  62. 62. STRATEGIC ALTERNATIVES + EVALUATIONS SELECTED ALTERNATIVE Year E-commerce Revenue % change Total Commerce 2006 2,972 13.9% 6.8% 2007 3,333 12.15% 5.0% 2008 3,704 11.13% 5.0% 2009 3,371 8.99% 10.9% WHY SHIFT TO E-COMMERCE?
  63. 63. ACTION PLAN ACTION PLAN
  64. 64. WHO IS RESPONSIBLE? • Information Technology ACTION PLAN • VP of Human Resources • VP of Operations • eCommerce SENIOR EXECUTIVES DEPARTMENTS
  65. 65. TIMELINE
  66. 66. TIMELINE 3 MONTHS • Which stores to close • Outsource? • Operational + HR logistics 1 RESEARCH
  67. 67. TIMELINE 5 MONTHS 2 • Development • Training • Create marketing campaign PREPARATION 3 MONTHS • Which stores to close • Outsource? • Operational + HR logistics 1 RESEARCH
  68. 68. TIMELINE 5 MONTHS 2 • Development • Training • Create marketing campaign PREPARATION 3 MONTHS • Which stores to close • Outsource? • Operational + HR logistics 1 RESEARCH 3 • Employee familiarity with system • Check for platform glitches/problems BETA TESTING 4 MONTHS
  69. 69. TIMELINE 5 MONTHS 2 • Development • Training • Create marketing campaign PREPARATION 3 MONTHS • Which stores to close • Outsource? • Operational + HR logistics 1 RESEARCH 4 LAUNCH! 1 YEAR from start date 3 • Employee familiarity with system • Check for platform glitches/problems BETA TESTING 4 MONTHS
  70. 70. MAJOR IMPEDIMENTS • Potential loss of excellent customer service (not same as in person face-to-face) ! • Limited ‘barrier to entry’ • Potential competition with Amazon and other online/digital companies ACTION PLAN
  71. 71. CONTINGENCY PLANS • Patents • If all fails, dissolve BestBuy U and redistribute employees to brick and mortar stores ACTION PLAN
  72. 72. CONCLUSION ACTION PLAN “How can Best Buy continue to have innovative products, top- notch employees, and superior customer service while facing increased competition, operational costs, and financial stress?” Solidify customer service value proposition Continue to differentiate from competitors and potential new entrants Accomplish this through innovative online platform (BestBuy U) 1 2 3
  73. 73. THANK YOU
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