Nature of Industry, Market, and Buying Behavior
Best Buy is a retail store with over 600 stores nationwide and over a thousand around the world. It is the major retailer store for electronics around the world and leads top ranked followed by Circuit City, Wal-Mart and Costco. The consumer electronics industry is growing steadily over the past few years. 2008’s projected revenue is expected to increase by 6.1%. This isn’t higher than 2007 but it is higher compared to other industries which are failing. Some items that are expected to see an increase are TV displays, gaming platforms, and next generation DVD players such as Blu-Ray and HD DVD (which Blu-Ray has won out over).
As stated before the consumer electronics industry is growing steadily and Best Buy has to compete with other companies to compensate for this growth. Right now Best Buy’s market share in the U.S. and Canada reach almost 20%. Circuit City is one of Best Buy’s main competitors in this industry. Some things that Circuit City is doing that is gaining recognition is the ability for customers to write reviews of products on its website. Best Buy has not allowed this, and many people are asking why. Circuit City is also discussing the probability of putting kiosks in their stores for customers to review and see reviews of products right in the store. Best Buy has looked into this themselves, but have not included it in its “customer-centricity” program.
The main buyer of electronics in the industry is surprisingly women. Women influence 89% of all purchases for consumer electronics in and out of the stores, and Best Buy is trying to focus mainly on this demographic. Although the main purchases are influenced by women, there is a large amount if men that are in the purchasing market. Best Buy has come up, along with some help from Larry Seldon of Columbia University, five different groups of shoppers for their store. First there is the affluent professional looking...