Best Buy Customer Centric Model
Best Buy Customer Centric Model
“How can Best Buy continue to have innovative products, top-notch employees, and superior customer service while facing increased competition, operational costs, and financial stress?” This is the critical question asked by a company who has out survived others, but will they outlast when all is said and done.
Originally known as the Sound of Music established in 1966, Best Buy began as an audio components retailer. By 1983, the company officially changes its name to Best Buy Co., Inc. (Best Buy). Over the years, Best Buy changes more than its name. With the company’s headquarters in Richfield, Minnesota it operates globally with around 4,000 stores in the United States, Canada, Mexico, China and Turkey. Accounting for 19% of the consumer electronics retailer, the company employs 155,000 “blue shirts”.
From a strategic standpoint, Best Buy moves from being the low cost discount retailer to a service-oriented company relying on a differentiation strategy. This differentiation strategy is how Best Buy is able to distinguish itself apart from its competitors giving them a competitive advantage.
In 1989, Best Buy makes the executive decision to change the compensation method of its employees. While, costly and time consuming, the company conveys the purpose of this conversion is to have the employees learn the products in order to help better assist customers. This gives the company a value-added competitive advantage.
Internally, Best Buy works extensively on its customer database. This resource allows the company to determine the potential expansion into an untouched market. Places like China, Middle East, Russia, and South America are still unscathed and this is optimistic for a future of an industry that is reaching its age in maturity.
The company’s objective is to find out who are their best customers. In 2005 Best Buy announces they will change their operations structure to a customer-centric operating model emphasizing
“How can Best Buy continue to have innovative products, top-notch employees, and superior customer service while facing increased competition, operational costs, and financial stress?” This is the critical question asked by a company who has out survived others, but will they outlast when all is said and done.
Originally known as the Sound of Music established in 1966, Best Buy began as an audio components retailer. By 1983, the company officially changes its name to Best Buy Co., Inc. (Best Buy). Over the years, Best Buy changes more than its name. With the company’s headquarters in Richfield, Minnesota it operates globally with around 4,000 stores in the United States, Canada, Mexico, China and Turkey. Accounting for 19% of the consumer electronics retailer, the company employs 155,000 “blue shirts”.
From a strategic standpoint, Best Buy moves from being the low cost discount retailer to a service-oriented company relying on a differentiation strategy. This differentiation strategy is how Best Buy is able to distinguish itself apart from its competitors giving them a competitive advantage.
In 1989, Best Buy makes the executive decision to change the compensation method of its employees. While, costly and time consuming, the company conveys the purpose of this conversion is to have the employees learn the products in order to help better assist customers. This gives the company a value-added competitive advantage.
Internally, Best Buy works extensively on its customer database. This resource allows the company to determine the potential expansion into an untouched market. Places like China, Middle East, Russia, and South America are still unscathed and this is optimistic for a future of an industry that is reaching its age in maturity.
The company’s objective is to find out who are their best customers. In 2005 Best Buy announces they will change their operations structure to a customer-centric operating model emphasizing