Clayton Bender, Justin Swanson, Kaitlyn Krause, Michelle Chambers, Elmon Tanielian
Best Buy Co., Inc. operates as a multinational retailer of consumer electronics within the services industry. Founded in 1966 under the name Sound of Music, Inc., Best Buy underwent a name change in 1988. It was founded by Mr. Richard M. Schulze and is headquartered in Richfield, Minnesota. Best Buy operates under a Board of Directors but is a publicly traded company owned by stockholders. The company operates retail stores and call centers and conducts online retail operations under a range of brand names such as Best Buy, Best Buy Mobile, The CarPhone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales and The Phone House. Best Buy is the 11th largest online retailer worldwide and ranks #468 on the Forbes Global 2000 (Global 2000 Leading Companies, 2012). The mission of Best Buy, though not directly outlined as such, can be summed up by a quote from the CEO. "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” (About.com). Best Buy’s vision is, “To make a meaningful and lasting impact on the quality of life in the countries and communities we serve.” Best Buy has four primary values that govern decision-making processes; unleash the power of our people, learn from challenges and change, show respect, humility and integrity, and have fun while being the best (Code of Business Ethics, 2013). Best Buy’s Market Philosophy:
Best Buy operates in all 50 states, districts and territories within the United States. Various brand names under the Best Buy Inc. umbrella exist throughout the geographic area including Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales (Best Buy 10k Report, 2012). In the US alone, Best Buy reaches nearly 1 billion consumers each year in stores, on BestBuy.com and on m.BestBuy.com or the mobile shopping website. Out of the $165 billion per year spent on electronics in the U.S., more than 26% of that is at Best Buy —ahead of Wal-Mart Stores (12%), Amazon.com (5%), Costco (3.5), and Target (2.5%) (On Best Buy Media Network, 2011).
Within the domestic market, store development is aimed at multi-channel retail points of presence that focus on a given local environment, while simultaneously decreasing overall store square footage. To do this, the company anticipates closing approximately 50 large format U.S. Best Buy branded stores in fiscal year 2013 to explore other options, as well as downsizing to appeal to increasingly popular online shopping trends. They have also decided to close all Best Buy branded stores in the UK, Turkey, and China. They instead chose to focus their attention on their Five Star branded stores in China, and their CarPhone Warehouse, and Phone House stores in Europe.
Best Buy’s international market is comprised of operations in Canada (Best Buy, Best Buy Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad), Europe (The CarPhone Warehouse, The Phone House and Geek Squad), China (Five Star), and Mexico (Best Buy and Geek Squad) (Best Buy 10k Report, 2012). These varied brands allow the company to include several lines of consumer retail products such as mobile phone products, entertainment products, appliances and related services that are tailored to appeal to each niche market. In 2012, international markets generated 26% of Best Buy’s revenue (Best Buy 10k Report, 2012).
In the Canadian market, Best Buy is the fastest-growing specialty retailer and “e-tailer” of consumer electronics, PCs, and entertainment software. Best Buy focuses on children and communities, attempting to “help youth develop their skill set, discover their talents, and sustain a lasting interest in education” (About Us, 2013). Best Buy has decided to close their...