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Best Buy Co., Inc
.
Lynae RambousekShu Fang (Jenny) Abdullahi AinabGunbilegt Byambadorj
History
1966 – First established as Sound of Music.
1984-1987 – Grew rapidly
2000 – Entered into Ecommerce market.
2002 – Bought Geek Squad which gave Best
Buy advantage in customer support.
2004 – announced as company of the year.
Current And Future Profile
Leader in innovation and quality
Europe, Canada, China, USA, and Mexico
earning $45 billion annually
Going to benefit from rapidly increasing E-
commerce.
Opening many more stores
SWOT
Strength
Brand Awareness
Strong market Presence
Strong Customer Service
Weakness
Few Suppliers
Opportunity
Growth in E-tailing
Threat
Economic Crisis
Low Quality
Products
Unique Sales Strategy
Attract Customers
Maintain and Acquire Customers
Build Relationships
Stand Out
Unique Sales Strategy
No Commission
Channel Conflict
Physical vs. Online Stores
Minimize Channel Conflict
Unique Sales Strategy
Geek Squad
Builds relationship with customer
Customer support, intelligent agent
Installations, repairs, services, and set ups
Reassurance and confidence for customer
Unique Sales Strategy
User Friendly Website
Locate stores
View weekly sales and ads
Outlet Center
Hot deals
Access Savings
Unique Sales Strategy
Small Business Center
Offers specific business products
Technology solutions
Advise on best suited products
Specific small business software
Unique Sales Strategy
Reward Zone & Credit Card
Earn points for every dollar spent
Special offers and promotions
Redeem points for cash
Use cash back to purchase more products
Unique Sales Strategy
Maintain Connection with Customer
Forums
IdeaX
Market Value
The compound
annual growth
rate of the
sector in the
period 2004-
2008 was
6.3%.
Computer & Electronics Retail Industry
Computer & Electronics Retail Industry
Market Segmentation
Market Share
Computer & Electronics Retail Industry
3
Competitors
Wal-Mart Stores, Inc.
American public corporation
Wal-Mart Stores U.S., Sam's Club &
Wal-Mart International
By 2010, 8,416 subsidiaries, in 15 countries
Withdrawals from Germany & South Korea
Loss in China’s market
Compete with
The lowest prices on electronics this holiday season?
The best selection of electronics this holiday season?
Competitors
Sears, Roebuck and Co.
American chain of Department stores
The largest retailer in the U. S. by the mid-
20th century
Sears Holdings Corporation in 2005
>860 mall-based stores in America,
>1200 other sites worldwide.
Store Dec. 2008
Dec. 2009 +/-
Best Buy 29.8% 33.1% 3.3
Sears 1.6% 2.0% 0.4
Competitors
J &R Electronics Inc.
Vast selection of top electronic goods
Catalogues and JR.com (launched in 1998)
"Retailer-of-the-Year" awards.
Competition Advantages
Low, Low Prices
Online Rebate Coupons and Offers
Customer Service
Geared for Individual
&Corporate Requirements
Recommendation
Short-term
Increase manufacture Warranties and
Protection Plans
Create local Geek Squads Blog
Invite Customers to the Blog
Long-term
Expand their Market
Reduce Hierarchy
Price Reduction
Recommendation
Thank you
Any Questions??
