Best Buy Study Case

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dr.ibrahim hegazy- marketing 480|
Best Buy INC.-Dual Branding in ChinaCase 2|
Nada Ali Ezz El Din900071202|



I. Introduction---------------------------------------------------------------------------------------p.3

II. Opportunity Identification-------------------------------------------------------------------p.3

III. SWOT Analysis -----------------------------------------------------------------------------p.3-p.7

IV. Alternative Suggestions and Solutions-------------------------------------------------p.7-p.11

V. Conclusion ------------------------------------------------------------------------------------p.11





I. Introduction:
China was Best Buy's second international venture, after its successful operations in the Canadian market. Best Buy ventured into China by opening a sourcing office in 2003, and at that time it planned to study and understand the Chinese market and also recruit talented employees locally in order to open its stores in China. Before it opened its own brand stores, Best Buy acquired a majority stake in Jiangsu Five Star Appliance Co., (Five Star Appliance) in May 2006. However, it faced some intensive competition from well-entrenched Chinese electronic retailers such as Gome and Suning. This paper will discuss the current situation Best Buy is facing by deciding how to enter the Chinese market of electronics, and this will be done through analyzing the strengths, weaknesses, opportunities and threats of the company Best Buy. In addition to studying the Chinese consumer and finally suggesting several solutions for the best way to enter the market giving its advantages and disadvantages.| |

II. Opportunity Identification:

As mentioned earlier, Best Buy Inc. multinational company considered to take a step forward in expanding the company by going international. The company’s first trial was in a neighbor country in Canada, hoping that the market was similar as in the US. Using the dual- branding strategy by introducing both brands Best Buy and Future Shop in Canada, the multinational company succeeded in establishing successfully its company creating a strong awareness and generating profits. As Best Buy is planning to maintain double-digit growth rate year after year, it saw that its international expansion as a window of opportunity. Therefore, the senior vice president of Best Buy, John Noble is tasked to decide whether a dual-branding strategy will work in China as an entry mode. And plan how Best Buy should implement this strategy in China.

III. SWOT Analysis of Best Buy

A) Strengths:
* Consumer friendly environment. The design of the shop and the salespeople was made to give the consumer a friendly and easier experience of shopping. The store was brightly lit and carpeted; the sales assistants at the stores were non-commissioned, and did not hard sell the products; and customers were provided with ample freedom to test and try the products. Best Buy had an in-store experience of “grab and go”. Unlike its competitors that had a traditional guided in store experience by the salespeople. This makes it easier for the consumer to buy and enjoy his consumer friendly environment. * Customer Centricity. It’s a home grown competence that Best Buy had deployed in Canada and seemed to have a universal appeal applicable to any new market. The concept is based on consumer insight and is also meant to encourage employee innovations in support of a better customer experience and not just a single moment in time but on a continuous basis. The goal is to drive customer engagement and foster repeat visits. * Geek squad. Specialized in repairing and installing PCs staffed by...
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