Best Buy Inc was founded in 1966 as an audio specialty store called Sound of Music established by Schulze and a partner. They opened their first store in St. Paul, Minnesota as an attempt to capture the car stereo retail market. It opened two additional stores and had an initial yearly income of $173,000. Four years later Schulze bought out his partner and proceeded to expand his retail chain. The company would continue to grow over the next few years, hitting the one million dollar annual revenue in 1970. Soon Schulze realized serving an audience of 15 to 18-year-olds with limited resources could potentially bring a standstill to his growing business. In 1982, his first step was to expand Sound of Music's offerings to include appliances and VCRs and once implemented, he observed the sales triumph to $9.3 million. The following year the company renamed itself Best Buy Co., Inc. and developed an older, broader, and wealthier consumer base offering a wide range of products a discounted pricing. To set Best Buy apart from its competitors, Schulze took sales staff off commission. The company expanded domestically and internationally, and quickly became the world’s leading consumer electronics retailer. The company operates more than 1,400 stores throughout the US and Canada, and another 2,600 stores in Europe and China, mostly under the Best Buy, Best Buy Mobile, and The Car Phone Warehouse banners. Best Buy does not have an official mission statement. The closest thing would be: "Our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers and we rely on our employees to solve those puzzles. Thanks for stopping." Best Buy also has five "brand promises"; to tell you all that we know, to show you the latest and greatest, to wow you with an experience that inspires, to never leave you hanging and to make a difference. With operations in four continents, Best Buy is a multinational retailer. Each store sells a variety of consumer solutions by offering hardware, accessories, connections content and services. Hardware consists of TV’s, laptops, desktops and cameras. Accessories include cases, monitors, printers and storage. The connection portion of Best Buy consists of Best Buy Mobile. Offering include mobile broadband, voice/data, and video services. Content includes subscription software, blue ray, movies and video games while the services include Geek Squad, Delivery, Installation and the buyback program.
Best Buy competes amongst those who provide electronics for consumers. For many years, Best Buy’s most direct competition was from Circuit City. Circuit City’s business was struggling since 2006 and filed for bankruptcy in November 2008.With $50.3 billion in revenue for the fiscal year of 2011, Best Buy is the largest consumer electronics retailer in the world relying on Connections to generate higher gross revenue then all other offerings. So what exactly is a connection? In early summer of 2007, Best Buy announced its addition of Connections which became widely known as Best Buy Mobile. Connections offer costumer solution by providing the consumer with embedded mobile broad band card, voice/data, and video services. Entering a new market in which was already established by the well known wireless providers was certainly a risk. Strategically, Best Buy Mobile was placed in certain testing areas within a Best Buy store located in the Midwest region as a trial run. After a year, Best Buy decided to proceed and place a Best Buy Mobile in each domestic store. The brand name generated a powerful name recognize that Apple decided to sign a contract with Best Buy Mobile to become the first third party to sell Apple's iPhone adding it to all Best Buy Mobile stores. After this announcement was made, the wireless providers including Sprint, T-mobile, Verizon and AT&T knew that a new threat was emerging their market....