Best Buy is the world's largest consumer electronics retailer with a focus on service, aiming for sustained growth through differentiation and a customer-centric strategy. The company faces challenges from competitors like Walmart and e-commerce retailers, as well as the need to adapt to rapid technological changes. Opportunities for growth include expanding global presence, enhancing in-store services, and entering digital streaming markets.

1. CASE STUDY: BEST BUY
SUBMITTED BY: SARTHAK ANAND | IET LUCKNOW

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. Company Goals
Leader in
service
Make
technology
deliver on its
promises to
customers
Sustained
growth and
earnings

4. CORPORATE
STRATEGY

5. BUSY
SUBURBAN
MOMS
PRICE
CONSCIOUS
FAMILY DADS
CUSTOMERS
AFFLUENT TECH
GEEKS

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. STORE
CONFIGURATION
EMPLOYEE TRAINING

8. ENTERTAINMENT
PLATFORMS
PRODUCT MX
CONSUMER
ELECTRONICS
APPLIANCES
ENTERTAINMENT
PLATFORMS
ELECTRONIC
REPAIRS

9. REVENUE MIX SUMMARY

11. STRENGTHS
● Differentiation Strategy
● Customer Information
Database
● Extensive levels of service
● Large global presence
● Steady increase in Sales

12. ● 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

13. • 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.

14. THREATS
● Availability of Substitutes
○ Electronic e-commerce
retailer (Amazon, eBay)
○ Big Box General
Merchandise Retailers (Wal-
Mart, Costco)
○ Digital Content Distributors
(iTunes, Netflix)

15. Solutions to Case
Questions

16. • 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?

17. • 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?

18. 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

19. $10,000 from Best
Buy Education
transformed a
Florida classroom,
with technology!

20. ABOUT
CORPORATE
STRATEGY
PRODUCT &
REVENUE MIX
Summary
SWOT
ANALYSIS
CASE STUDY
QUESTIONS

21. These slides were created by Sarthak Anand, IET Lucknow as a part
of Marketing internship under the guidance of Prof. Sameer Mathur,
IIM Lucknow.