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Best buy
Best Buy is an American electronics retailer headquartered in Minnesota. It operates over 1,000 stores across the US and has over $50 billion in annual revenue. However, its market share has declined due to increased competition from Amazon, Walmart, and Apple. Best Buy is working to adapt by closing some stores, focusing more on online sales and services, and improving the customer experience. It faces challenges from showrooming and must find ways to remain competitive against other retailers.
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Best buy
- 1. An American multinational consumer electronics corporation Headquarters: Richfield, Minnesota, USA Operations: UnitedStates, Puerto Rico, Mexico, China and Canada Subsidiaries: CinemaNow, Geek squad, Magnolia audio video, Pacific sales, Cowboom Revenue of 49 billion 1055 Best Buy stores in U.S, 406 mobile stand alone stores BestBuy.com is among the top ten retail websites in U.S More than 1 billion visitors to website and 600 visits to U.S stores/year Best Buy co. Inc. CEO: Hubert Joly
- 2. U.S electronics market BestBuy is the market leader in electronics market in U.S Amazon and Apple’s market share is increasing Walmart also catching up fast Circuit city ran out of business in 2009
- 3. Price Perception issuewith Best Buy Major Competitors
- 4. Best Buy offersunique customer promise: • The latest devices and services, all in one place • Impartial and knowledgeable advice • Competitive prices • The ability to shop when and where you want • Support for the life of your products Over the last few years, Best Buy has suffered from: • Showrooming • Failed to capitalize on online market • No exclusivity • Huge store space but not enough returns • Emergence of Amazon
- 5. ADVANTAGES • Instant gratification •After sales support • Direct interaction with sales team • Quality assurance DISADVANTAGES • Huge capital investments • Higher prices • Limited to area where store is located • Tedious ADVANTAGES • Huge Discounts • Match prices with competitors • Open 24*7 • No pressure sales DISADVANTAGES • Can’t try the things physically • No direct interaction with salesperson • Shipping takes time • Quality issues
- 6. 2010 2011 20122013 2014 Sales 49.69B Sales 42.41B Sales 49.14B Sales 50.71B Sales 50.27B Gross income 9.95B Gross income 11.67B Gross income 12.59B Gross income 12.67B Gross income 12.16B Net income 1.32B Net income 1.28B Net income (1.06B) Net income (482M) Net income 687M Performance Measures
- 7. 5 Reasons WhyBest Buy is Going Down in 2014 • Growth is going the wrong way • Consumer electronics may never be the same • This is no longer a juicy dividend play • Best Buy is no longer cheap • Sector rotation cuts both ways
- 8. • Reinvigorate and rejuvenate CUSTOMER EXPERIENCE •Work to innovate and drive value with VENDOR PARTNERS • Attract and inspire LEADERS AND EMPLOYEES • Continue leadership role in positively impacting OUR WORLD • Increase ROIC INVESTORS RENEW BLUE Downsizing: To stay competitive • Best Buy closed down 50 stores • Opened 100 Best Buy mobile stores, connected stores to cut 800 million in costs • Introduced a price matching initiative to end practice of showrooming • Launched Renew Blue campaign as a strategy to lure back customers
- 9. Sale exclusive products not available online Charge equipment manufactu res for showroom space Focus on online market and managing inventories Continue matching the competitor prices Focus moreon profitable goods and services Focus on after sales service and employee efficiency Strategies to remain competitive Can Best Buy survive?
- 10. Presented by: Satish Bhadra– 1 Pratik Datey – 11 Ankur Kesharwani – 21 Shital Mohite – 31 Sohan Paturkar – 41 Rishit Shah – 51