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.

1. An American
multinational
consumer
electronics
corporation
Headquarters:
Richfield,
Minnesota, USA
Operations:
United States,
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
Best Buy 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 issue with Best Buy
Major Competitors

4. Best Buy offers unique 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 2012 2013 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 Why Best 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
more on
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