1. Taking a Look at Best Buy
Synopsis
When one envisions an electronic company, Best Buy generally comes to mind. It is just like Nike
or Coca–Cola. Founded in 1966, this company was formally known as Sound of Music (Hoffman,
2010, p.24–2). It was mainly a retailer of audio components. However, in the early 1980s, Best Buy
began to add additional products. It was not uncommon for the next 30 years for more products to
be added as technology advanced. In 1983, the company changed its name to Best Buy Co. and
operated as a superstore (Hoffman, 2010, p.24–2). The entire look of this company was changing
drastically. This would include the sales staff as well. Originally, the staff had worked on a
commission based salary. However, in 1989, this structure was eliminated and sales associates
transformed into educators that assisted customers in learning about the products offered in the
stores (Hoffman, 2010, p.24–2). Basically, the customer took control and the employees were there
as guidance. The idea of having control in buying electronics became more common as the
technology developed. In order to let the consumer have more control, the company expanded
further by developing and releasing BestBuy.com. This website was launched in 2000 to give
customers a choice between visiting a physical store and purchasing products online (Hoffman,
2010, p.24–2).
The year 2000 was a great year for Best Buy. In addition to expanding into the online market, it
grew the number of products and services through acquiring
... Get more on HelpWriting.net ...
2.
3. Best Buy Research Paper
The roots of Best Buy Co., Inc. can be traced back to St. Paul, Minnesota. This is where founder
Richard Schulze opened the doors of his Sound of Music store in 1966. Understanding a demand for
consumer audio components and systems in the St. Paul area, Schulze managed to provide a
combination of great prices and excellent service, thus building a strong customer base, which
quickly prompted an expansion into home appliances and video products.
The eighties prompted change as well as the opening of Best Buy's first superstore. During 1983, a
new corporate name was approved and the Sound of Music Company became known as Best Buy
Co., Inc. With mounting consumer support Best Buy continued its road to expansion by opening an
additional ... Show more content on Helpwriting.net ...
These stores are designed to acquire the business of a large retail market. Each Best Buy location is
quite large, ranging anywhere from 20,000 to 45,000 square feet (FAQ). Best Buy locations provide
a familiar place to shop for any number of products targeted to meet the needs of a broad consumer
base. As of February 26, 2005, Best Buy Co., Inc. reported 668 Best Buy stores in operation within
the United States. In addition to the Best Buy stores the company operates, Magnolia Audio Video
centers that are smaller locations fashioned to meet the needs of customers with high–end
preferences. There are currently twenty Magnolia Audio Video locations in throughout America.
Best Buy Co., Inc. has recently released an expansion plan in which they plan to open additional
smaller stores nationwide as well as in Canada. At this time there are approximately 673 Best Buy
stores. This number is said to increase to about 1,000. Additionally, Future Shop stores will also be
included in this new growth period. Future Shop stores are said to grow from 145 stores to
approximately 200 (Best Buy Expansion Plans Include China). The new smaller stores are seen as
being more profitable. With a 10% reduction in construction costs and the operating costs being
much less, the new smaller stores will be much more profitable then the super stores that we are
used to seeing. The growth period is said to last about 5 years and will not only
... Get more on HelpWriting.net ...
4.
5. Best Buy Internal and External Analysis
Internal Analysis: Core Competencies, Strengths and Weakness
The (RCC) / VC model is used to determine how Best Buy bundled its resources to create
capabilities and how these capabilities become the company's core competencies which will be their
source of competitive advantage.
TANGIBLE RESOURCES
Financial Resources
– Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011.
– Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.
– Majority of Best Buy acquisitions of foreign electronics companies have been profitable.
– Domestic sales contribute 74% of the total gross revenues– $37.2 million compared to $13.1
billion from the international segment.
– Total revenue has been ... Show more content on Helpwriting.net ...
The online BestBuy.com provides superior assistance to customers making purchases. This website
also provides 24/7 human customer assistance, user forums, professional and customer reviews. All
the services were possible through acquisitions. Strong Customer Service will be able to provide a
reputable image in the heart of the consumer.
Marketing
Financial, Physical, Organizational, Technology, Reputation resources
Best Buy used to have a negative reputation. It was nickname as "Amazon's showroom" because
consumer browses the products in Best Buy and purchase it through Amazon's application. With the
online platform (Bestbuy.com), 60% of the Best Buy customers will start their research and
shopping at Bestbuy.com.
With Best Buy acquiring Five Star Appliance in China, the name has been brought into China,
opening up to more consumers. Even though it may not be profitable however now people in China
are getting more aware of Best Buy Company. After performing poorly, Best Buy decided to convert
it to Five Star Branded stores in China. All these show that Best Buy has the financial power to
repackage and adapt to difficult terrains.
Capabilities – Management
Valuable – YES
It is important to have a good management to direct Best Buy to the correct direction.
Rare – YES
Not a lot of company has the same management style.
6. Costly to imitate – YES
It will take a huge sum to retain
... Get more on HelpWriting.net ...
7.
8. Best Buy Financial
9 –7 1 3 –4 0 3
JUNE 30, 2012
JOHN R. WELLS GALEN DANSKIN
Best Buy in Crisis
Introduction
At the end of fiscal 2012, Best Buy found itself in an increasingly challenging situation. Although it
could still claim to be the world's largest consumer electronics retailer with $50.7 billion in
revenues, growth for the year, at 0.9% was anemic. Meanwhile, Amazon's sales in Best Buy's
categories were growing at more than 50% p.a. and its total sales, at $48 billion, were approaching
those of Best Buy. Operating profits were also disappointing having dropped 54% to $1.1 billion
and net income fell into the red at –$1.2 billion. The fiscal 2012 year–end stock price fell to $24.70,
down from a high of $53.86 in 2006. In five years, Best Buy ... Show more content on
Helpwriting.net ...
In 1988, personal computers were added to the product line. Four years into the superstore strategy,
Highland, the industry number two, lowered its prices in Minneapolis, Best Buy's heartland, selling
at 10% above cost. Best Buy margins fell sharply. In search of a new approach, Best Buy conducted
consumer research and discovered the customers had a poor image of superstores. They saw
shopping as a stressful experience and felt pressured by salespeople into buying expensive items.
Customers wanted an enjoyable shopping experience and a no–pressure selling environment.
Concept II: 1989–1994
In response to this consumer research, Best Buy implemented a ground–breaking "grab–and–go"
store format in 1989 called Concept II. Backroom space in stores was turned into sales space and the
inventory was put out on display with basic information labels so that customers could see what was
in stock and understand the product without explanations from sales staff. Salaried product
specialists replaced commissioned sales staff and, rather than pushing products on customers,
patiently waited in department centers for customers who sought help. The format proved very
popular, and by fiscal 1994, Best Buy operated 151 stores generating $3.0 billion in revenue and $77
million in operating profits. In the process, Best Buy entered Chicago and Texas, Highlands' core
territories, and the company went bankrupt.
Concept III: 1995–2002
In 1995, Schulze,
11. Netflix Case Analysis
NETFLIX
By Roxanne Meyer
Netflix is an American provider and the world's leading internet subscription service of on–demand
streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and
Ireland and flat rate DVD–by–mail in the United States. Netflix members can instantly watch
unlimited films and TV episodes streamed over the internet to more than 700 devices for about
$7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the
video game industry could be an option, however various factors such as competitors, viability and
sustainability of the company as a whole need to be further analyzed in order to assess whether this
proposal is feasible.
Competitor ... Show more content on Helpwriting.net ...
* Very competitive prices. For as little as $7.99 a month, people can watch as many movies as they
want, either streaming or on DVDs. For just a bit more, a higher number of DVDs can be taken out
at a time, giving users more flexibility. This form of movie renting is less expensive than paying for
cable movie channels, while giving customers more selection.
Weaknesses * Pricing power. The studios can still dictate some serious terms to Netflix, limiting
when various movies become available (the infamous "28–day window" for instance) or for
however long they desire. * Difficulties in Inventory Control Inventory control is very difficult in
Netflix because DVDs are sent to customers through mail, some DVDs might arrive late and some
might be broken or lost during delivery. * Loss of customers due to delays It is difficult to get the
actual numbers or DVDs that might be available due to customers ' right to keep the videos as long
as they want. This might also cause Netflix to lose some customers if the customers have to wait too
long for their favorite movie or a new release. * Bottlenecks can result
Although Netflix allow unlimited DVD rentals, the customer has to return at least one movie to get
another
... Get more on HelpWriting.net ...
12.
13. Best Buy Essay examples
Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based
out of Eden Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million
in total revenue last year. Best Buy carries a wide variety of products consisting of Major
Appliances, video and audio equipment, computers, software, music, and wireless technology. When
analyzing this corporation it is important to pay close attention to its current and future services and
products, any problems with the corporation, the future direction Best Buy is headed, what can be
done for the corporation, and what it can do for you as a consumer or employee. ... Show more
content on Helpwriting.net ...
Best Buy also offers the in home delivery and installation of video and major appliances. Because of
this agreement with Microsoft, Best Buy's eCommerce is an excellent source for customers to
purchase anything in the store on line. Netflix a major source for renting DVD's online has teamed
up with Best Buy to enable the customer to buy the DVD movie of choice right from the Best Buy
website. BestBuy.com also offers the consumer the option to order any product from the store
directly to their door step in the matter of a day.
One of the major weaknesses with Best Buy is its dependence on the economy. If we are in a
recession or there are a lot of layoffs in the area of a certain store its business is directly affected.
Unlike with some corporations such as CISCO systems or Ameritech they are in many way's utility
services and aren't directly influenced by the state of the economy. Best Buy's CEO Dick Schulze
admitted in an article that sales are down due to the current state of the economy: "We had
expected earnings to decline in a decelerating economy," Best Buy chief executive Richard
Schulze said in a statement. But, he added, "I remain confident that we are on track to deliver
earnings growth of 16 to 18 percent this year," or $2.16 to $2.21 per share, assuming no
significant decline in the economy. ' this seems to be the case with most retail chains but with the
... Get more on HelpWriting.net ...
14.
15. Netflix vs. Redbox
A draft of Netflix vs. Redbox Netflix Strengths Netflix provides a subscription–style e–commerce
service. Customers only need to sign up and pay $13.95–39.95 a month to borrow as many as 2–9
movies at a time with no monthly limit. If customers quickly watch the DVD and send them back,
the monthly fee pays for quite a few movies. The relatively low monthly fee enables Netflix to
compete with Blockbuster and other brick–and–mortar video rental business. Meanwhile, Netflix
might keep the customers who try the service and happy with it continue paying the monthly fee.
Therefore, Netflix has less problem in predicting revenue or level revenues. * Being an on–line
DVD rental store, Netflix combines the growing Home Entertainment Market and ... Show more
content on Helpwriting.net ...
* NetFlix and Musicland Stores paired up to begin a cross promotion program to promote awareness
and sales of DVDs. NetFlix will point customers to SamGoody.com when they want to buy discs. In
return, SamGoody.com will provide the purchase phase of NetFlix 's "Test drive" program before
they decide to buy. Customers who visit a page for a specific movie on SamGoody.com will also
have the option to rent from NetFlix.com. NetFlix will also give the option to rent DVD from
Netflix.com or buy it from SamGoody.com. * As a web based business, NetFlix has rapid growth
potential with the popularity and development of World Wide Web, and DVD technologies. More
and more people will accept and be involved in e–bussiness. NetFlix, the world 's first and largest
online DVD rental store, will develop fast. * NetFlix established promotional relationship with
Amazon.com for the sale and rental of DVD. Amazon 's reputation for its tremendous selection and
first–class customer service will make it the ideal partner to handle sales to NetFlix 's customers.
NetFlix also looks forward to introducing millions of Amazon.com customer to its compelling DVD
rental service through exclusive special offers and promotions. This might bring much more
customers to NetFlix. * Playing Video games is a very popular amusement. Netflix will extend into
video game rental business. Threats: * Traditional brick and mortar rental stores are a threat
... Get more on HelpWriting.net ...
16.
17. Best Buy Co. Inc.
INTRODUCTION:
Best Buy Co., Inc. is an American multinational consumer electronics corporation headquartered in
Richfield, Minnesota, a Minneapolis suburb. It operates in United States, Puerto Rico, Mexico,
Canada, and China. The company was founded by Richard M. Schulze and Gary Smoliak in 1966 as
an audio specialty store; in 1983, it was renamed and rebranded with more emphasis placed on
consumer electronics. Best Buy 's subsidiaries include Cinema Now, Geek Squad, Magnolia Audio
Video, Pacific Sales, and Cowboom. Best Buy operates under the Best Buy, Best Buy Mobile, Geek
Squad, Magnolia Audio Video, and Pacific Sales brands in the US; the Best Buy, Geek Squad, Cell
Shop, Connect Pro, and Future Shop brands in Canada; Best Buy Mobile ... Show more content on
Helpwriting.net ...
The Best Buy stores have about 50,000 employees. Including subsidiaries, the Best Buy extended
enterprise has approximately 80,000 employees. (2)
WHAT HAPPENED TO BEST BUY :
The bad news for Best Buy is the company reported a $1.7 billion loss in its fiscal fourth quarter
2012 (the quarter ended for Best Buy on March 3rd), compared to net income of $651 million one
year ago. Furthermore, the consumer electronics giant announced it has plans to close 50 stores in
the US in an effort to improve its business performance. (3)
It 's worth noting that a major part of this quarterly loss came from Best Buy 's purchase of Car
phone Warehouse 's share of Best Buy Mobile 's profit sharing agreement; there were also
restructuring costs due to last fall 's shutdown of Best Buy stores in the UK. Overall, this amounted
to $2.6 billion in costs which definitely hurt Best Buy 's bottom line this quarter. Otherwise,
revenues of $16.6 billion represented a three percent increase over the year–ago quarter. Full year
performance was also down year–over–year – overall, the company posted a loss of $3.36 per share
compared to last year 's diluted earnings per share of $3.08. As for the store closure, Best Buy hasn 't
announced which stores it will close, nor when those stores will shut down, but this is just part of a
major restructuring plan that calls for $800 million in cost reductions by FY 2015. The company
plans
... Get more on HelpWriting.net ...
18.
19. Barnes and Noble Strategic Audit
Strategic Analysis: Barnes & Noble Executive Summary Barnes & Noble is a key player in the
Book Retail Industry. This mature industry has been experiencing slow growth over the last several
years, much slower than overall retail sales. Barriers to entry into this industry are quite high, and
suppliers have modest influence over booksellers. The introduction of the Internet has brought about
many changes to this industry. It has increased rivalry, buyer power, and substitutes. Spending time
"surfing the net" is one of many substitutes to reading books nowadays. Other technological
advances, such as VCR 's and video games, have replaced time otherwise spent reading. Buyers
have greater influence over the industry, because they ... Show more content on Helpwriting.net ...
1999 sales reached $13.7 billion, up only 3.7% over 1998. By comparison, overall retail sales
increased by a strong 9 percent for this same period. Total bookstore sales for 1997 were $12.5
billion. Industry surveys indicate that the four largest chains accounted for approximately 45.2% of
total sales in 1997.  According to the 1997 Consumer Research Study on Book
Purchasing, book purchases per U.S. household grew just 0.6 percent from 1996 to 1997. During the
same period, the U.S. population grew approximately 1 percent. This statistic shows that the U.S.
book market is growing slower than the population.  The 1998 Consumer Research Study
on Book Purchasing found that as the American economy thrives and sets impressive new growth
records, growth in book sales continues to slow. This survey found that it was the upper income
(>$75,000) professional households, also the heaviest book buyers, who are most responsible for the
drop in unit sales. According to the Book Industry Study Group, the study suggests that "the book
industry appears to react counter–cyclically to the overall economy. In good times, consumers may
spend their disposable income on other forms of entertainment or on more expensive durable
goods." This study also revealed that 1.9
... Get more on HelpWriting.net ...
20.
21. Best Buy
Executive Summary
Best Buy Company, Inc. is the multinational retailer of consumer electronics in the United States.
Together with its subsidiaries, which include Geek Squad, Magnolia Audio Video, Pacific Sales and
Future Shop, the company has approximately 4,000 stores located in the United States, Canada,
Mexico, China, and Turkey.
Best Buy considers their value added approach to customer service, by creating positive experiences
during the initial purchase and afterward, to be the contributor that allows the company to stand out
from its competitors. By investing in sales staff training, employees have a clear understanding of
the products they sell, and are better equipped to provide consistent and guaranteed quality ... Show
more content on Helpwriting.net ...
This allows Best Buy to capture new market growth through innovation.
Core Values/Guiding Principles
Best Buy approaches the consumer electronics industry by educating their customers with a highly
trained sales force. Educating customers with product features allows for informed buying decisions
from a diverse product range. This is referred to as the customer centricity model, and is illustrated
in Appendix IV. The company also provides installation service, product repair and on–going
customer support that contribute towards the core value of end–to–end customer solutions.
Valuable experience was gained through the successful acquisition of companies and employees.
Acquisition gave Best Buy the ability to determine where expansion should take place, and was the
key in distinguishing itself from its competition in the consumer electronic market. The knowledge
base of high calibre employees was recognized as another core value in the company's strategy and
success. Best Buy's global presence provided awareness of any global trends, and access into
developing markets to foresee customer needs.
Best Buy values a well–trained employee base in order to provide customers with a superior
customer experience. This is an exclusive resource in the consumer electronics industry since
technology is frequently changing, making this the foundation of their competitive advantage.
Stakeholder Analysis
By leading
... Get more on HelpWriting.net ...
22.
23. Netflix Case Analysis
Netflix Case Analysis
Netflix is an American provider and the world's leading internet subscription service of on–demand
streaming media in the United States, Canada, Latin America, the Caribbean, United Kingdom and
Ireland and flat rate DVD–by–mail in the United States. Netflix members can instantly watch
unlimited films and TV episodes streamed over the internet to more than 700 devices for about
$7.99 a month. With regards to increasing the influence of the Netflix brand, expansion into the
video game industry could be an option, however various factors such as competitors, viability and
sustainability of the company as a whole need to be further analyzed in order to assess whether this
proposal is feasible.
Competitor ... Show more content on Helpwriting.net ...
Plus, Netflix streaming is available on many different consumer electronic devices and is becoming
a standard feature for new TVs. * Key Alliances
Netflix holds a contract with movie studios and film producers (such as MGM studios, Warner
Bros., Dream Works, etc.) to gain direct distribution and access to first run movie content without
the traditional 9 to 12 month delay. This strategy of developing key alliances (Best Buy) with
content providers in film and the television sector, and merchandise of DVD hardware has moved
Netflix straight to the top of the market, making their brand name recognized and trusted. * Very
competitive prices.
For as little as $7.99 a month, people can watch as many movies as they want, either streaming or on
DVDs. For just a bit more, a higher number of DVDs can be taken out at a time, giving users more
flexibility. This form of movie renting is less expensive than paying for cable movie channels, while
giving customers more selection.
Weaknesses
* Pricing power.
The studios can still dictate some serious terms to Netflix, limiting when various movies become
available (the infamous "28–day window" for instance) or for however long they desire. *
Difficulties in Inventory Control
24. Inventory control is very difficult in Netflix because DVDs are sent to customers through mail,
some DVDs might arrive late and some might be broken or lost
... Get more on HelpWriting.net ...
25.
26. Best Buy Internal and External Analysis
Internal Analysis: Core Competencies, Strengths and Weakness
The (RCC) / VC model is used to determine how Best Buy bundled its resources to create
capabilities and how these capabilities become the company's core competencies which will be their
source of competitive advantage.
TANGIBLE RESOURCES
Financial Resources
– Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011.
– Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.
– Majority of Best Buy acquisitions of foreign electronics companies have been profitable.
– Domestic sales contribute 74% of the total gross revenues– $37.2 million compared to $13.1
billion from the international segment.
– Total revenue ... Show more content on Helpwriting.net ...
Best Buy can then set to achieve employee commitment, which will then result in customer
satisfaction.
Innovation Resources
– Best Buy stores offer the Best Buy Mobile store–within–a–store feature and access to Geek Squad
services.
– Brokered a deal with Brazilian Cruise Company to bring tourists to Best Buy as a stop on their
trip.
– Providing consultation services to business purchasers as well as showcasing products specifically
designed for business applications.
Best Buy not only does business–to–consumer but also on business–to–business sales. This allow
them to generate revenue from another market.
Reputational Resources
– Best Buy was seen as the team to beat by their competitors.
– Best Buy was named as "Amazon's showroom".
– Purchased almost 65% of its product from 20 suppliers with 5 of those (Apple, HP, Samsung,
Sony and Toshiba) providing almost 40% of its merchandise.
– 60% of Best Buy customer begin their research and shopping on the Best Buy website.
– Best Buy tap on the reputation of Jiangsu Five Star Appliance Company because it is the largest
27. retailers of consumer electronics and appliances in China.
– A reputation for providing superior sales assistance for a big box retailer.
Best Buy has both positive and negative reputation. However, they have converted the negative
reputation to positive by creating a
... Get more on HelpWriting.net ...
28.
29. Organisational Culture And Organizational Culture
Organisational culture refers to 'the shared beliefs and values guiding the thinking and behavioural
styles of members' (Cooke and Rousseau, 1988, in Bratton 2010: 334), indicating that employees
who accept the common values of an organisation and put great effort on commitments are likely to
build up a strong culture to an organisation. Edgar Schein (2004) proposed three levels of
organisational culture. As employees go through changes, they gain experiences from the past, adapt
to a new environment and develop ability to solve problem. The first level is artefacts, which
include all visible characteristics of an organisation, for instance, the architectures/furniture in the
office, uniforms of employees and language. These are the observable elements of an organisational
culture and might influence the way and attitude of how the employees work. The second level is
espoused values in which the influence patterns of observable behaviour at work can be recognised.
Each member will impose dominant values and rules of conduct about the culture and these affect
employees' certainty to work under a particular area. The perceived value that can demonstrate
reliability and be scientifically tested will be transformed into assumption. It then comes to the third
stage of basic assumptions which are taken into granted and are difficult to change. When an
assumption or belief about human nature was supported to be worked successfully, this frames how
the reality should be and shapes
... Get more on HelpWriting.net ...
30.
31. Research on Best Buy Co. Essay examples
Research on Best Buy Co.
The roots of Best Buy Co., Inc. can be traced back to St. Paul, Minnesota. This is where founder
Richard Schulze opened the doors of his Sound of Music store in 1966. Understanding a demand for
consumer audio components and systems in the St. Paul area, Schulze managed to provide a
combination of great prices and excellent service, thus building a strong customer base, which
quickly prompted an expansion into home appliances and video products.
The eighties prompted change as well as the opening of Best Buy's first superstore. During 1983, a
new corporate name was approved and the Sound of Music Company became known as Best Buy
Co., Inc. With mounting consumer support Best Buy continued its road to expansion ... Show more
content on Helpwriting.net ...
In recent years, Best Buy Co., Inc. has stretched its grasp to the international retail technology
industry. Acquisition of Canada's largest existing consumer electronics retailer, Future Shop,
spearheaded the international expansion in early 2001. This paved the path for the official launch of
the Best Buy's independent label, Redline Entertainment. Within the Canadian sector two separate
superstores exist, Best Buy (Canada) and Future Shop, both of which target a broad costumer base.
Understanding the recognition and loyalty amongst Canadian consumers, Best Buy has continued
the use of the Future Shop named superstores. Since the acquisition of the Future Shop, Best Buy
Co. has expanded the Future Shop locations to its status of 114 stores across Canada. In addition to
Future Shop stores, Canadian Best Buy stores have continued to expand within the past three years;
numbering 30 to date.
The company truly extended itself worldwide in 2003 with the unveiling of a global sourcing office
in Shanghai, China. Currently Best Buy operates three offices within China. They are located in
Shanghai, Beijing, and Shenzhen. The primary function of the China locations is to buy the products
in which Best Buy Co., Inc. sells. Over the next year and a half, Best Buy Co., Inc. is planning on
opening what they refer to as "lab stores"(Best Buy Geeks Run amok). The company is taking every
opportunity possible to acquire as much information it can about Chinese buying patterns
... Get more on HelpWriting.net ...
32.
33. The Best Buy Inc.
Best Buy Inc. is a retailer of technology products, services and solutions globally. Its stores offer
consumer electronics such as television, cameras, printers, portable electronics and related
accessories. Other offerings include computing and mobile phone products and related subscription
services. Video gaming hardware, software, appliances as well as kitchen and bath fixtures are also
sold in–store and online. Product repairs, delivery, installation and technical support, snacks and
beverages are the value added services provided by Best Buy Inc. The company's online retailing
and service provisions are operated under various brand names such as Best Buy, Best Buy Mobile,
Geek Squad, Magnolia Audio Video and Pacific Sales. Magnolia Home Theater, Magnolia Design
Center and Pacific Kitchen and Home, deliver store within a store experience. As of January 31
2015, Best Buy operated around 100 stores of various sizes and it's headquarter in Richfield,
Minnesota.
Best Buy is considered part of the electronic stores industry within the services sector. Some major
companies within this industry include Conn's, GameStop, hhgregg, Apple, Dixons (UK), Gome
(China) and Yamada Denki (Japan). According to Consumer Electronics Association, global sales of
consumer technology is about $1 trillion. China is currently the largest market for consumer
electronics with strong retail growth potential in India, Brazil and other emerging economies. There
are approximately 50,000 electronics
... Get more on HelpWriting.net ...
36. and had opened two new outlets near the University of
Minnesota in downtown Minneapolis.
Schulze bought out Wheeler in 1971,13 shortly after Sound of Music hit the $1 million mark in
annual revenues.14 Subsequent years saw continued expansion through additional locations, new
product lines, and novel
promotional
... Get more on HelpWriting.net ...
37.
38. Best Buy Individual Case Analysis
Brad Smith
Background and Problem Statement –
Best Buy Company, Inc. is the world's largest specialty retailer of name–brand consumer electronic
products. Product categories include home office, consumer electronics, entertainment software, and
major appliance products.
The Company currently offers over 6,000 products in these product categories. During fiscal 2000,
the Company increased its store count by approximately 15%, with the addition of 47 new stores,
including nine small–market stores and, as of December 2000, was operating more than 400 stores
in 41 states. The Company anticipates opening approximately 60 stores in fiscal 2001.
Best Buy was founded under the philosophy of providing customers with a wide selection of ...
Show more content on Helpwriting.net ...
Industry Rivals – Industry Rivals such as Circuit City and Radio Shack have been hurt in some
markets due to the expansion of Best Buy, but by having a better customer service rating, some
customers are coming back.
New Entrants – The threat of new entrants is moderate. Moderate because of the high cost of entry,
but the relatively successful business model Best Buy has outlined.
Substitutes – The threat of substitutes is low. Yes you can shop at Wal–Mart for digital cameras, but
you do not have the selection or quality available to you.
Strengths –
Best Buy provides good quality products at a great price. They also understand that customers want
hassle free shopping, which draws consumers into their store to window shop. For many industries
this may not be strength, but for Best Buy it is.
By having the best price, Best Buy can afford to have window shoppers. They will be able to see all
of the new merchandise and if they do comparison shop, the will return to Best Buy.
Best Buy has been successful with their web presence; they have found another outlet for customers
39. to purchase products from Best Buy.
Weaknesses –
One of Best Buy's weaknesses is Customer Service. This is show from the high percentage of
customer service complaints written to Best Buy. According to PlanetFeedback Radio Shack and
even Circuit City have a better customer
... Get more on HelpWriting.net ...
40.
41. Best Buy Essay
Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based out of Eden
Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million in total
revenue last year. Best Buy carries a wide variety of products consisting of Major Appliances, video
and audio equipment, computers, software, music, and wireless technology. When analyzing this
corporation it is important to pay close attention to its current and future services and products, any
problems with the corporation, the future direction Best Buy is headed, what can be done for the
corporation, and what it can do for you as a consumer or employee.
Best Buy is currently the number one computer retailer throughout the U.S. and offers ... Show more
content on Helpwriting.net ...
If we are in a recession or there are a lot of layoffs in the area of a certain store its business is
directly affected. Unlike with some corporations such as CISCO systems or Ameritech they are in
many way's utility services and aren't directly influenced by the state of the economy. Best Buy's
CEO Dick Schulze admitted in an article that sales are down due to the current state of the economy:
"We had expected earnings to decline in a decelerating economy," Best Buy chief executive Richard
Schulze said in a statement. But, he added, "I remain confident that we are on track to deliver
earnings growth of 16 to 18 percent this year," or $2.16 to $2.21 per share, assuming no significant
decline in the economy. ‘ this seems to be the case with most retail chains but with the amount of
expansion that Best Buy is working towards there is plenty of room to make up for losses.
In terms of future directions the company is taking, in February of 2001, Best Buy embarked on its
most advantageous venture by the acquisition of the Musicland Corporation which owns stores such
as Sam Goody Music, Suncoast Video, and Media play. This acquisition will help to give Best Buy
the edge in the electronic and entertainment sales field. Best Buy obtained over 1300 stores from the
Musicland Corporation. Richard Schulze's press release said it all when he discussed where the
company was headed with the newly acquired stores. "We
... Get more on HelpWriting.net ...
42.
43. Declining Record Sales: Who Is to Blame?
The music recording industry is in trouble. For several years now, sales of new and popular music
have steadily declined and show no sign of changing. The record companies are quick to blame the
growing popularity of the Internet; music is being traded in a digital form online, often
anonymously, with the use of file–sharing programs such as Morpheus, KaZaA, and Imesh, to name
a few. The RIAA (Recording Industry Association of America) succeeded in disbanding the pioneer
Internet file–sharing program, Napster, but is facing confrontation with similar programs that are
escaping American copyright laws. While there is an obvious connection between declining popular
music sales and increasing file sharing, there is more going on than the ... Show more content on
Helpwriting.net ...
This has had a much larger impact on retails than one may think. "Big discount chains like Wal–
Mart and K–Mart have seen their stocks tumble or remain stagnant in recent years, while others, like
Bradlees have filed for bankruptcy protection" (Jeffrey). A recent article in Rolling Stone reviews
the year 2002 in terms of the music business. "At the close of a dismal year for the music industry,
sales were down thirteen percent, layoffs and roster cuts were imminent at many labels, and major
record–store chains were struggling to survive" (Eliscu, 2002 's Music, 11). The following graph
from that article illustrates the difference in top selling albums of recent years.
2000 Top Selling Albums 2002 Top Selling Albums
‘Nsync – No Strings Attached
9.9 million Eminem – The Eminem Show
7.4 million
Eminem – The Marshall Mathers LP
7.9 million Nelly – Nellyville
4.8 million
Britney Spears – Oops! I Did it Again
7.9 million Avril Lavigne – Let Go
3.9 million
Creed – Human Clay
6.6 million Dixie Chicks – Home
3.4 million
The difference is evident. At the number one spot, Eminem sold 2 million less copies in 2002 than
‘Nsync did in the same slot only two years earlier. Eminem 's top selling album in 2002 was
outsold by the top three selling albums of 2000, and the difference between the number one and the
number two selling albums in 2002 is nearly 3 million, compared to 2000 's top two spread of two
million. This chart also exhibits an artist
46. Netflix SWOT Essay
Can you name the largest online entertainment subscription service? If you said "Netflix" then you
are correct. Netflix started in 1997 by Reed Hastings and the subscription service started in 1999.
The company headquarters is based out of San Francisco, California. There are over 100 shipping
location in the United States. Netflix offers over 100,000 DVD titles and over 8,000 that are ready to
be watched instantly on a subscribers PC. Netflix has over 1500 fulltime and 1100 part time
employees at their headquarters and shipping centers. This had made Netflix the top ranked e–
commerce company in customer satisfaction and that is causing a rapid growth in subscribers,
revenue and earnings.
How does it work? First, sign up create ... Show more content on Helpwriting.net ...
Netflix has been named the #1 retail Web site for customer satisfaction for six consecutive surveys
since 2005 by ForeSee Results. In the fall of 2005, Fast Company named Netflix the winner of its
annual Customers First Award. In January 2007, Netflix was named the Retail Innovator of the Year
by the National Retail Federation. (www.netflix.com)
According to Netflix most recent SEC 10K report here is Netflix's core strategy and marketing
strategy: Our core strategy is to grow a large DVD subscription business and to expand into
Internet–based delivery of content as that market develops. We believe that the DVD format, along
with its high definition successor formats, including Blu–ray will continue to be the main vehicle for
watching content in the home for the foreseeable future and that by growing a large DVD
subscription business; we will be well positioned to transition our subscribers and our business to
Internet–based delivery of content. In January 2007, we introduced our instant–watching feature for
PCs. We intend to broaden the distribution capability of our instant–watching feature to other
platforms and partners over time. In January 2008, we announced a development arrangement with
LG Electronics. While the terms of this arrangement have not been finalized, we anticipate
developing, in conjunction with LG Electronics and other consumer electronics' manufacturers, a
set–top box device or other devices
... Get more on HelpWriting.net ...
47.
48. BSA 375 Complete Course
Link name BSA 375Week 1 Discussion Question 1 Why do heuristics and biases play a major role
in the success or failure of an IT project? What specific kinds are the most influential factors, in
general and for your specific organization? How does organization culture play a role in the
successful reliance on the Joint Application Development (JAD) process to identify and gather
business requirements? Would JAD work in your company? Explain why or why not. BSA
375Week 1 Discussion Question 2 Based on Tallon and Scannell's (2007) article, describe
information life cycle management (ILM) and the relationship to the cost of storage. Based on
Mitchell's (2007) article, explain how Musicland stores were converted to the ... Show more content
on Helpwriting.net ...
Cite and discuss 3 to 4 references, in addition to the required readings, that are relevant to the
assignment. Include citations and references, using the approved style guide format. Submit section
2 of the final paper. BSA 375Week 4 Discussion Question 1 Is testing a distinct phase of a project,
or does it come into play during other phases? Explain your answer. How might tools help the
quality and effectiveness of testing? Based on Walsh's (2007) article, explain why end–user
satisfaction should be used in addition to return on investment (ROI) when measuring new systems.
BSA 375Week 4 Discussion Question 2 Based on Davidson and Kumagai's (2008) article, list three
advantages and risks associated with open source software. BSA 375week 4 Individual Assignment
Service Request SR–rm–004, Part 3 Paper – create using Riverpoint Individual Assignment: Service
Request SR–rm–004, Part 3 Paper Complete section 3 of 3 for the final paper This week's
assignment incorporates the transition from design to implementation. You may consider revising
sections 1 and 2 based upon faculty feedback. Prepare a 4–6 page paper that accomplishes the
following: Describe the implementation stage for this project. Include a discussion on the six major
activities for the implementation stage as described within the text: Coding. Testing. Installation.
Documentation. Training. Support. The discussion on these six
... Get more on HelpWriting.net ...
49.
50. Best Buy Project Analysis
–––––––––––––––––––––––––––––––––––––––––––––––––
Best BUY CO., INC
The follow document presents an Strategic Analysis for Best Buy.
–––––––––––––––––––––––––––––––––––––––––––––––––
Best BUY CO., INC
The follow document presents an Strategic Analysis for Best Buy.
Prepared by
Prepared by
November 17, 2011
November 17, 2011
1.0 Executive Summary 1
1.1 Section I. 2
1.2 A) Company History 2
1.3 Strategies and Tactics used by Best Buy 3
1.4 B) Mission Statement (implied)...................................................................................4
1.5 Analysis of the Mission 4 1.6 C) Objectives 5 1.7 Analysis of the Objectives 5
2.0 Section II ............................................................................................................6
2.1 Financial Analysis...................................................................................................6
2.2 ... Show more content on Helpwriting.net ...
Inc.; Best Buy opens its first superstore in Burnsville, Minnesota.
1985. Best Buy's initial public offering on the NASDAQ raises $8 million.
1986. A public stock offering raises $33.6 million, helping finance a 12 store expansion.
1989. Best Buy unveils a revolutionary "grab and go" store format in a non–commissioned,
warehouse–style environment; Best Buy's brand logo changes to the familiar yellow tag.
Unprecedented Growth
1993. Best Buy becomes the nation's second largest consumer electronics retailer.
1994. Best Buy establishes the Best Buy Children's Foundation to invest in organizations and
programs committed to making a difference in the lives of children.
1995. Best Buy breaks into Fortunes magazine's annual ranking of America's 500 largest
corporations, listed at number 373; Best Buy implements the Standard Operation Platform (SOP),
developed to support and manage every aspect of the company's business.
51. 1999. Best Buy and Microsoft partner to cross promote products. Reaching New Heights
2000. Best Buy enters the online retailing business by launching www.bestbuy.com; Fortune
magazine names Best Buy one of the top performing stocks since 1990; Best Buy acquires Magnolia
Hi–Fi (now called Magnolia Audio Video).
2001. Best Buy enters the international marketplace with the acquisition of Canada–based Future
Shop.
2002. Best Buy and Geek Squad join forces; Eight Best Buy Canada stores open in the greater
Toronto area.
2003. Best Buy opens
... Get more on HelpWriting.net ...
52.
53. The Greed of Music Industry Executives and Declining...
The Greed of Music Industry Executives and Declining Record Sales
The music recording industry is in trouble. For several years now, sales of new and popular music
have steadily declined and show no sign of changing. The record companies are quick to blame the
growing popularity of the Internet; music is being traded in a digital form online, often
anonymously, with the use of file–sharing programs such as Morpheus, KaZaA, and Imesh, to name
a few. The RIAA (Recording Industry Association of America) succeeded in disbanding the pioneer
Internet file–sharing program, Napster, but is facing confrontation with similar programs that are
escaping American copyright laws. While there is an obvious connection between declining popular
music ... Show more content on Helpwriting.net ...
Even sales figures for singles are down. "Sales are off by 63.9%...6.7 million units were sold in the
first six months of 2002 vs. 18.6 million unites in the same period in 2001" (Garrity).
Not only are the companies themselves facing hard times, but the retail stores that sell music are
also suffering their own losses. "Musicland Stores, the largest music retailer in the U.S. continues to
report losses and declining sales...For the third quarter, the Minnetonka, Minn.–based company
reports a new loss of $16.1 million, compared with a loss last year of $144.6 million" (Jeffrey). The
company was even forced to close some of its stores. "At quarter's end, Musicland operated 1476
stores...During the quarter, the company closed the following: Nine Sam Goody/Musiclands, two
Media plays, one On Cud, and on U.K. store" (Jeffrey). This problem hits home in Vermillion, South
Dakota, where the local On Cue store, the only place to buy entertainment products like CDs and
audiocassettes, was forced to close because of insufficient revenues. Inhabitants of Vermillion are
now forced to travel anywhere from 30 to 60 miles away to purchase music offline. While this town
obviously reflects a very small percentage of consumers, the lack of immediately available music
products certainly will not help the declining record sales.
The stocks of music
... Get more on HelpWriting.net ...
54.
55. Essay on Netflix Case Study
Table of Contents
Company Overview 4
Issues 5
Analysis
External Analysis
Dominant Economic Feature 8
Competitive Forces – Five Forces Model 10
Driving Forces 12
Key Success Factors 14
Competitor Analysis 15
Industry Attractiveness 21
Internal (Company) Analysis Company Strategies 21 SWOT Analysis 23 Value Chain Analysis 29
Competitive Strength Assessment 30 Strategic Issues and Obstacles 31
Alternative Courses of Action for Success 31
Recommendations 31
Implementation 32
Works Cited 36
Appendices
Corporate Officers A
Online Movie Industry Market Share B
Renting Process Flow ... Show more content on Helpwriting.net ...
Many of their competitors have longer operating histories, larger customer bases, greater brand
recognition and significantly greater financial, marketing and other resources than Netflix does.
Some of their competitors have adopted, and may continue to adopt, aggressive pricing policies and
devote substantially more resources to marketing and Web site and systems development than
Netflix does. The rapid growth of their online entertainment subscription business since their
beginning may attract direct competition from larger companies with significantly greater financial
resources and national brand recognition. For instance in 2003 the extremely wealthy Wal–Mart
used their online site to launch an online DVD subscription service, Wal–Mart DVD Rentals. With
increased competition reduced operating margins may result as well as a loss of market share and
reduced revenues. In addition, our competitors may form or extend strategic alliances with studios
and distributors that could adversely affect our ability to obtain titles on favorable terms.
Secondary
· There are new opportunities for the industry. With the advancement of technology many
companies can take advantage of the Internet. Currently Netflix expects to spend $7 million–$14
56. million this year on its Internet Video–On–Demand offering, which it will launch during 2005.
Along with opening more distribution centers, this will cut down on delivery costs and time. They
expect Internet VOD to have little
... Get more on HelpWriting.net ...
