Best Buy case study
Course Name
Strategic Management
Submission of
“Case 24 Best Buy Co. Inc.: Sustainable Customer Centricity Model?”
Abstract
Best buy Co. Headquartered in Richfield, Minnesota, was a specialty retailer of consumer electronics. It operated over 1,100 stores in the US, accounting for 19% of the market. With approximately 155,000 employees, it also operated over 2,800 stores in Canada, Mexico, China and Turkey.
The company’s subsidiaries included Geek Squad, Magnolia Audio Videos, and Pacific Sales. In Canada, best buy operated under both the best buy and future shop labels.
Best buy was originally known as Sound of Music. Incorporated in 1966, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line. In 1983 the company changed its name to best buy company. Shortly thereafter the company began operating its existing stores under “superstore” concept by expanding product offerings and using mass marketing techniques to promote those products.
In 2000, the company launched its online retail store: bestbuy.com which allowed customers a choice between visiting a physical store and purchasing products online, thus expanding best buy’s reach among consumers. In the same year the company began series of acquisitions to expand its offerings and enter international markets.
Despite the negative impact the financial crises had on economics worldwide, there were increase in sales during the years from 2006 to 2008, however, it didn’t last. Sales dropped 2% in 2009, which was the first decline in 20 years for the electronics giant.
Television sales specially LCD units, which accounted for 77% of total television sales, were the main driver for best buy, as this segment alone accounted for 15% of total industry revenues.
Strategic Management
Submission of
“Case 24 Best Buy Co. Inc.: Sustainable Customer Centricity Model?”
Abstract
Best buy Co. Headquartered in Richfield, Minnesota, was a specialty retailer of consumer electronics. It operated over 1,100 stores in the US, accounting for 19% of the market. With approximately 155,000 employees, it also operated over 2,800 stores in Canada, Mexico, China and Turkey.
The company’s subsidiaries included Geek Squad, Magnolia Audio Videos, and Pacific Sales. In Canada, best buy operated under both the best buy and future shop labels.
Best buy was originally known as Sound of Music. Incorporated in 1966, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line. In 1983 the company changed its name to best buy company. Shortly thereafter the company began operating its existing stores under “superstore” concept by expanding product offerings and using mass marketing techniques to promote those products.
In 2000, the company launched its online retail store: bestbuy.com which allowed customers a choice between visiting a physical store and purchasing products online, thus expanding best buy’s reach among consumers. In the same year the company began series of acquisitions to expand its offerings and enter international markets.
Despite the negative impact the financial crises had on economics worldwide, there were increase in sales during the years from 2006 to 2008, however, it didn’t last. Sales dropped 2% in 2009, which was the first decline in 20 years for the electronics giant.
Television sales specially LCD units, which accounted for 77% of total television sales, were the main driver for best buy, as this segment alone accounted for 15% of total industry revenues.