Best Buy Swot Analysis

Topics: Retailing, Strategic management, The Carphone Warehouse Pages: 2 (358 words) Published: June 12, 2012
Best Buy SWOT Analysis
The following SWOT analysis is for Best Buy. Best Buy is an electronics and appliance retailing company that specializes in consumer electronics, home-office products, entertainment software, and household appliances. It is one of the largest specialty retailers in the United States, serving a diverse customer base. Best Buy’s current competitors include specialty home-office retailers (Staples, Office Depot); retail discounters (Wal-Mart); wholesale clubs (Costco, Sam’s Club); and online competitors (Amazon, Circuit City). Strengths

* Revenue of $16.26 Billion and profit of $651 million in 2011 * Operate more than 1,150 stores in the U.S. and abroad
* Retail class leader based on customer satisfaction surveys * Leading U.S. retailer in computers, televisions, tablets, and cameras * Implementation of green initiatives to reduce electronic waste Weaknesses

* Initially established image as a lower quality retailer * Impact of class action lawsuit settlement in 2011
* Previously neglected niche market for higher end products Opportunities
* Purchase of Carphone Warehouse Group interest (U.S. / Canada) * Growth in sales of mobile phones and tablets
* Improving inventory management through long-term relationship with suppliers * Further expansion of chain by opening “mobile” stores * Increasing availability of higher end merchandise
* Online competitors
* Pressure from competitors to reduce prices
* Rising labor wages
* Current economic trends
Amid stiff competition from online retailers and retail discounters such as Amazon and Wal-Mart, Best Buy should take a closer look at its current business strategy. Revenue and profits for 2011 were higher than forecasted. However, sales for 2012 have declined, indicating that Best Buy’s current restricting efforts may be insufficient to offset the pressures faced by the organization. Best Buy’s management needs to develop...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • SWOT Best Buy Essay
  • Best Buy Case Analysis Research Paper
  • Best Buy Situation Analysis Essay
  • Best Buy SWOT Analysis Matrix Essay
  • Swot Best Buy Essay
  • Essay on Best Buy
  • Best Buy Analysis Essay
  • Best Buy Analysis Essay

Become a StudyMode Member

Sign Up - It's Free