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Best Buy Analysis

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Best Buy Analysis
Table of Contents
1. Executive Summary 3
2. Situation Analysis 4
a. Company 4
i. History 4 ii. Best Buy Today 7 iii. Best Buy’s New Leadership 8 iv. Organizational Structure 10
b. Best Buy’s Industry 18
c. Best Buy’s SWOT Analysis 19
i. Porter’s Five Forces 20
d. Capabilities and Processes 22
3. Customers 23
4. Products and Services 27
5. Industry Context 30
6. Best Buy Competitors 32
a. S.W.O.T. Analysis of Competitors 32
i. RadioShack 33 ii. Game Stop 35 iii. Staples 36
7. Financial Ratios 38
8. Collaborators 38
9. Growth Strategy 39
a. Goals and Objectives 40
b. Segmentation 41
c. Targeting 44
d. Positioning 45
10. Strategic Execution 46
a. Product 46
b. Place 49
c. Promotion 52
d. Pricing 53
11. Capital Budgeting Analysis 55
12. Prices and Inventory 56
13. Implementation and Timing 56
a. Pro Forma 57
b. Scenario Analysis 59
c. Sensitivity Analysis 60
14. Conclusion 61
15. References 63
Executive Summary
According to the Best Buy’s corporate website, the company’s “unofficial” mission statement is simple, “We’re a growth company focused on better solving the unmet needs of our customers.”1 Upon reviewing this statement, our team was motivated to construct a unique plan that expands Best Buy brand and influences new target markets, while also continuing to provide growth and development in Best Buy’s products and services. Our initiative is to develop smaller stores that feature a condensed selection of consumer electronics, these stores will be strategically placed in areas where customers have unmet needs. The products, services, and staff offered will, high quality and knowledgeable service. These condensed stores will focus on the


References: 2. Best Buy. 2013 Annual Report: FORM 10-K. Richfield, MN: Best Buy Co. Inc., United States Securities and Exchange Commission. Washington, D.C., 2013. 3 4. Rotterdam, Adam. “Best Buy Co., Inc.: Sustainable Customer Centricity Model.” 2010 School of Management, Erasmus University and Bentley University. RSM Case Development Centre (2010). October 10, 2013. 5 8. Weisenthal, Joe. “Best Buy Share Have Been On An Insane Tear In 2013.” Business Insider 20 Aug. 2013. 9 10. “Best Buy Co., Inc. (BBY).” Yahoo Finance. Yahoo. 19 Nov. 2013. 11 12. Kerin, Roger A., Steven W. Hartley, and William Rudelius. Marketing The Core. 5th ed. N.p.: McGraw-Hill, 2012. Print. 13. Steiner, Ina. Ecommercebytes. Web. 12 Oct. 2013. 14 15. Reuters. N.p., n.d. Web. 1 Nov. 2013. . 16 17. Reuters. N.p., n.d. Web. 1 Nov. 2013. . 18. MarketWatch. The Wall Street Journal, n.d. Web. 5 Nov. 2013. . 19. MarketWatch. The Wall Street Journal, n.d. Web. 5 Nov. 2013. 20 21. Yahoo Finance. Yahoo, n.d. Web. 6 Nov. 2013. . 24. American Fact Finder. U.S. Census Bureau, June 2013. Web. 13 Nov. 2013. . 25. Labus, Peter. “The Supply Chain of Best Buy” google, 31 Mar. 2008. Web. 22 Oct. 2013. https://sites.google.com/site/retailpapers/operations/best-buy-supply-chain 26 29. Seeking Alpha. N.p., 5 Dec. 2012. Web. 7 Nov. 2013. . 30. Morningstar. N.p., 31 Oct. 2013. Web. 4 Nov. 2013. . 31. Morningstar. N.p., n.d. Web. 4 Nov. 2013.
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