Best Buy's Customer-Centric Model
Discuss why Best-Buy’s customer-centric model may not be relevant today. More specifically, consider the following issues:
How have segment needs and preferences evolved to prompt a re-consideration of the customer-centric model?
Which factors contributed to such shifts?
Can Best-Buy currently successfully compete for the customers in the “long-tail” of the Pareto curve?
Provide a rationale for your answers.
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Customer centricity is at the core of many successful businesses. More and more companies are adopting Customer centric approach, outside in approach, which takes the customers’ insights to develop products and design services. In order to execute the business model successfully, companies have to closely observe customer behavior and adapt quickly to the changes.
Best buy has to reconsider its customer centric model and make it more relevant to current needs and preferences of the segments. Customers are seeking products that are customized to their needs1. People are becoming busier with every day and have less time to shop, so they are leaning towards online shopping. “Barry’s and Jill’s” fall into this category. The “Buzz”, a focused, active younger male, is increasingly connected online resulting in buying products online. The shift of electronic goods from highly considered to near commodity status reduced the advantages of sales staff in providing differentiated customer advice2. More choices and information is shifting the “Ray” segment to make decision based on price.
Factors that contributed to the shift in Consumer behavior:
The innovation in consumer electronics industry, in recent times, has been at a high leading to a slew of electronic products hitting the market every day. A large number of products are available in the market giving the customer an extensive choice and increasing his bargaining power.
The wide spread usage of
How have segment needs and preferences evolved to prompt a re-consideration of the customer-centric model?
Which factors contributed to such shifts?
Can Best-Buy currently successfully compete for the customers in the “long-tail” of the Pareto curve?
Provide a rationale for your answers.
____________________________________________________________________________
Customer centricity is at the core of many successful businesses. More and more companies are adopting Customer centric approach, outside in approach, which takes the customers’ insights to develop products and design services. In order to execute the business model successfully, companies have to closely observe customer behavior and adapt quickly to the changes.
Best buy has to reconsider its customer centric model and make it more relevant to current needs and preferences of the segments. Customers are seeking products that are customized to their needs1. People are becoming busier with every day and have less time to shop, so they are leaning towards online shopping. “Barry’s and Jill’s” fall into this category. The “Buzz”, a focused, active younger male, is increasingly connected online resulting in buying products online. The shift of electronic goods from highly considered to near commodity status reduced the advantages of sales staff in providing differentiated customer advice2. More choices and information is shifting the “Ray” segment to make decision based on price.
Factors that contributed to the shift in Consumer behavior:
The innovation in consumer electronics industry, in recent times, has been at a high leading to a slew of electronic products hitting the market every day. A large number of products are available in the market giving the customer an extensive choice and increasing his bargaining power.
The wide spread usage of