Best Buy-Case Study Analysis

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Best Buy: Case Study Analysis

Company site:
www.bestbuy.com

Stats:
Approximately 180,000 employees, 1,172 stores, $35.9 billion revenue

Industry:
Electronics/Appliances

About Best Buy:
“Best Buy began as a small specialty audio retailer in 1966.  Today the company is the world's largest consumer electronics dealer.  While many factors contributed to Best Buy's success, one of the most important is its focus on understanding consumer behavior.  Best Buy has used consumer research to better understand customer needs and wants and to guide its decisions about the operation of its stores.  Some changes that were driven by Best Buy's understanding of consumers included its shift to discounted prices, the creation of superstores, and the elimination of commissioned sales representatives.  Most recently, Best Buy adopted a "customercentric" approach to connecting with customers.  The approach has used research to improve store design, merchandise offerings, and services as it seeks to connect with customers and differentiate itself from Circuit City, Wal-Mart, Costco, and other mass marketers and consumer electronic retailers.” (From: https://esc.angellearning.com/section/default.asp?id=EMPU%2D87XTB5)

Challenges company faces:
• Competition from other stores/operations that also sell electronics such as Circuit City, J&R Music World, Sears, Walmart, Costco • Customer and Employee demographic of women-company wants to attract not only female customers but female employees as well • Global Expansion Goals

• Develop and maintain customer satisfaction
• Develop and maintain employee satisfaction
• Develop a system to best keep track of customer demographics and customer purchases

Solutions:
• Monitor global competition by doing competitive research • Color coded store allows customer-friendly system of locating products • Continual research to keep abreast of what the customer wants • Use of different channels to...
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