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Best Buy | Case Study

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Analysis of Best Buy mini case from Kotler's Marketing Management textbook.

This presentation was created by Sarthak Anand, IET Lucknow during a Marketing internship under Prof. Sameer Mathur, IIM Lucknow.

Published in: Marketing
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Best Buy | Case Study

  1. 1. CASE STUDY: BEST BUY SUBMITTED BY: SARTHAK ANAND | IET LUCKNOW
  2. 2. About the company ● Started as an audio component system retailer- Sound of Music ● World’s largest consumer electronics retailer, with $34.2 bn in sales ● Operates retail stores throughout US, China, Canada, Europe & Mexico
  3. 3. Company Goals Leader in service Make technology deliver on its promises to customers Sustained growth and earnings
  4. 4. CORPORATE STRATEGY
  5. 5. BUSY SUBURBAN MOMS PRICE CONSCIOUS FAMILY DADS CUSTOMERS AFFLUENT TECH GEEKS
  6. 6. D I F F E R E N T I A T I O N ● Home Delivery ● Repair and Warranty Services ● In-home technical services ● Broad Selection of Products ● Financing
  7. 7. STORE CONFIGURATION EMPLOYEE TRAINING
  8. 8. ENTERTAINMENT PLATFORMS PRODUCT MX CONSUMER ELECTRONICS APPLIANCES ENTERTAINMENT PLATFORMS ELECTRONIC REPAIRS
  9. 9. REVENUE MIX SUMMARY
  10. 10. STRENGTHS ● Differentiation Strategy ● Customer Information Database ● Extensive levels of service ● Large global presence ● Steady increase in Sales
  11. 11. ● Fewer Stores relative to competitors (like Walmart) ● Shorter product life cycles increase training costs ● Decline in operating margins ● Relatively new CEO, Hubert Joly (2012) WEAKNESS
  12. 12. • 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. OPPORTUNITIES ● Provide more value-added services in store ● Increase global presence as domestic market matures ● Move into digital streaming space by acquisitions or expansions ● Products plays into competitive advantage.
  13. 13. THREATS ● Availability of Substitutes ○ Electronic e-commerce retailer (Amazon, eBay) ○ Big Box General Merchandise Retailers (Wal- Mart, Costco) ○ Digital Content Distributors (iTunes, Netflix)
  14. 14. Solutions to Case Questions
  15. 15. • Customer Centricity Strategy • Employee Knowledge • Customer data info Question 1 Keys to Success Risks • Rivalry among existing competitors • Risk of substitute products or services What are the keys to Best Buy’s Success? What are the risks going forward?
  16. 16. • Digital Acquisitions • Online Customer Service/Learning • Global Expansion • Entering New Domains Question 2 How else can Best Buy compete against new competitors like Walmart and online companies?
  17. 17. Solution deep-dive Digital Acquisition • Differentiates product portfolio • Anticipate growth in online streaming or gaming market Online Servicing • Enhanced Customer Experience • Lowers HR costs Global Expansion • Large untapped Demands • High Potential Growth
  18. 18. $10,000 from Best Buy Education transformed a Florida classroom, with technology!
  19. 19. ABOUT CORPORATE STRATEGY PRODUCT & REVENUE MIX Summary SWOT ANALYSIS CASE STUDY QUESTIONS
  20. 20. These slides were created by Sarthak Anand, IET Lucknow as a part of Marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.

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