Best buy provide electronics, entertainment software, home office products and different related services to these products. It is basically electronic and electronic device company. It working in Canada and USA and it’s headquarter is located in Richfield, Minnesota. The company consists of 100,000 employees. In 2005 the company profit reaches to $27.3 billon which is almost 11.4% high than its profit in 2004. This increment is because of the demands of its electronic product in the market. The company overall profit recorded in 2005 is $984 million which is increased up to 39.6 as compared to the profit in 2004. Although the company is running very good, but still there are a no of competitors who offers discounts.
• As best buy is one of the top electronic company in both Canada and USA due to its electronics products thus it have a large number of consumer using their products
• Due to its large size and profit the company can spend a lot of money in their advertisement of new products.
• The company have already strong store for selling as compared to their competitors,
• Best buy has strong advantage on their competitors in the digital TV market, thus it can help the company in both discounted and with out discount selling’s.
• Best buy is award as “best HDTV seller” by ADTG (academy of digital television Gadgets) in 2005 due its effort by promoting digital TV in its stores.
• One of the weak points of the company is that it has very low gross margin as compared to the competitors.
• The companies relay mostly on the local consumers for example its consumers are in USA and Canada only.
• The profit of the company is only limited to the US market.
• The company opens its first selling store in Canada out side USA but the sale was not good because of high expenses and it affect the company profit.
• The company now starts to modify its stores by converting according to the needs of its consumers.
• In the United State digital Entertainment is all known in the market of electronics.
• Manufacture of new models of electronic models like DVD, TV, HD-DVD players etc have very high demand and could help in improving the company sales and profit.
• One of the demanding products in 2004 of the company was LCD, which increase the profit to a great extent.
• In 2005 the company shows no interest in its 36 months announcement for the home theater system, it only shows it interest in credit promotion. As keep in mind that most of the user are happy with the products like home theater and can be attracted by such type of things. So the company is very affected by such type of strategies.
• The company faces a lot of competitors who offered discounts in electronics products thus the company must also show such type of strategies, thus it would maintained its position in US.
1. Owning support and service online—-quick wins: move http://forums.bestbuy.com/bb/
2. Geek Squad – good service and its positioning supports a contemporary, non-Wal-mart view of the world.
3. Be more of a Borders Books for electronics – give the store and online experience a more community feel