This presentation was created during a marketing internship under the supervision of Prof. Sameer Mathur, IIM Lucknow. It contains an in-depth strategic analysis of the company, Best Buy.

2. • 1966 – Richard Schulz opens the Sound of Music store.
•1970 – Sound of Music hits $1 million mark in annual
revenues.
• 1983 – Sound of Music becomes Best Buy Co. Inc.
• 1993 – Best Buy becomes USA’s’ 2nd largest consumer
electronics retailer.
•2000 – Best Buy launches www.bestbuy.com.
• 2001 – Best Buy goes international.

3. • World’s largest multi-channel consumer
electronics retailer.
• Has a total of 1631 worldwide outlets.
• Named ‘Company of the Year’ by Forbes (2004).
• Ranked in Top 10 of ‘America's Most Generous
Corporations’ by Forbes (2005).
• Made Fortune magazine’s ‘List of Most Admired
Companies’ (2006).
• Current CEO: Hubert Joly.

5. • Latest devices, all in one place.
• Impartial and knowledgeable advice.
• Competitive prices.
• Ability to shop when and where consumers want.
• Support for the life of consumers’ products.

6. • Pays $60k per year average.
• Invested 50,000 hours of employee training.
• Trains its employees to cater to different
market segments.
•Employees work round the clock, in shifts.
• Employees are evaluated periodically through
surveys and performance reviews.

7. Print Ads Billboards
TV
Ads Social
Media

8. The busy,
suburban
mom
The price-
conscious
dad
The young
gadget
enthusiast
The
affluent
tech geek

9. Objectives:
• To reinvigorate and rejuvenate
customer experience.
• To attract and inspire leaders
and employees.
• To work with vendor partners to
innovate and drive value.
• To increase ROIC for investors.
• To continue leadership role for
positively impacting the world.

10. E-Commerce
M-Commerce
Subsidiaries
Retail Stores

12. • Understands customer needs.
• Soft-sell tactics.
• Segments its consumer base to provide customized
products and better service.
• Strives to provide excellent customer service.
• Cutting edge technology.
• Growing vendor partnerships = increasing investment.
• Switched from single to multi-channel strategy to adjust to
shifts in consumer behavior.
•And the most important: Teamwork.

14. • Threat of cheaper products by competitors.
• Global expansion = more investment in research about
how to best cater to new markets.
• New rules and regulations in new markets.
• Rising labor wages.
•Heavy dependence on brick-and-mortar locations than
ecommerce.
•High dependence on supplier credit.
• Change in govt. policies can affect operations.

16. • Increasing their consumer-centricity tactic.
•Improving on offerings of post-sale services, e.g.
increased warranties.
•Lower prices and couponing.
• Gearing up social media marketing.
• Featuring products from companies that typically are not
distributed or searched for on Amazon.
• Leverage unique advantages such as allowing customers
to pick up online orders at local stores on the same day.

18. • Innovations in e-commerce with faster delivery, better in-
stock availability.
• Improvement of asset-utilization with a store-within-a-store
model.
• Release of new items in the future.
• Global expansion and diversification.
• Disappearance of competitors like Radio Shack and
Circuit City will benefit Best Buy.
•Improvements and enhancements to existing technologies.

19. • Best Buy is the world’s largest multi-channel consumer
electronics retailer.
• Best Buy uses targets 4 market segments: tech geek, suburban
mom, young gadget enthusiast, price conscious dad.
• Best Buy uses print ads, social media, TV ads and billboards as
advertising channels.
• Best Buy uses ecommerce, m-commerce, retail stores and
subsidiaries as distribution channels.
• Although Best Buy has achieved success, it must overcome
competitors.
• The future looks bright for Best Buy as long as it continues to
innovate and diversify.

20. This presentation was
created by Sadhika
Pant, University of
London, during a
marketing internship
under the
supervision of
Prof. Sameer
Mathur, IIM
Lucknow.

21. www.bestbuy.com (Slide 1
www.pexels.com (Slides 8, 11, 12, 13, 14,
15, 16, 17, 18, 21)
www.3dnews.ru (Slide 3)
www.flikr.com (Slides 2, 10)
www.gettyimages.in (Slide 5)
www.coloribus.com (Slide 6)
www.finance.yahoo.com (Slide 9)
www.bestbuy.com (Slides 7, 10)
www.mobilecommercedaily.com
www.commons.wikimedia.org (Slide 10)