Preview

Economics of Best Buy

Powerful Essays
Open Document
Open Document
1607 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Economics of Best Buy
One of the fortune 500 companies in our society is Best Buy. Best Buy is one of the largest consumer electronics retailer company in the United States and Canada. There are many products Best Buy distributes, such as; computers, computer equipment, video and audio products, refrigerators, coffeemakers, compact discs, video games, DVD and VHS movies and players, CD’s, computer software, cameras, cell phones, and satellite systems and so on. In addition, their customer service is very helpful and has improved throughout the years. The Geek Squad is one of their forms of customer service they provide and they offer various computer-related services and accessories for residential and commercial clients. Best Buy didn’t always have these products and services available. They are an industry that changes with the times. They supply products that are in high demand by the consumers. Best Buy was started in 1996 by Richard R. Schulze and his business partner James Wheeler. It was originally known as Sound of Music and the first store was located in St. Paul, Minnesota. In 1983, the company’s name was changed to Best Buy and the first store named Best Buy was located in Burnsville, Minnesota. By 1984, there were only 8 Best Buy’s in the Midwest, but by 1987 the number tripled and their sales and earnings were at a high $239 million and $7.7 million respectively. And since they have money to spend, they increased their warehouse size and products. In 1985, Best Buy went public and then two years later they were listed on the New York Stock Exchange. By 1988, sales had doubled to $439 million, but net earning declined 64%.Despite the net earnings declining, revenues were still increasing well into 1989. Also, in 1989, Best Buy launched its Concept II stores with bigger show rooms, fewer sales people and more self help product information. From 1992-1993 Best Buy had the best financial performance in the company’s 27 year history with an increase in revenues and earnings.


Cited: Best Buy Co., Inc.. 2010 funding universe. 5/7/10 .  "Best Buy." Company Profiles for Students. 1999 ed.  Best Buy Launches New Holiday Advertising Campaign; Alliance with Major Entertainment Groups Highlight Customer Experience. 2002 Business Wire. 5/7/10 .  Best Buy Using Reviews in Advertising. 2010 Bazaarvoice Inc. 5/13/10 .  Best Buy. 2010 Mahalo.com inc. 5/7/10 .  Coleman, Quentin. Public Corporation Information. 2010 eHow. 5/11/10 .  Hamilton, Anita. Why Circuit City Busted, While Best Buy Boomed . 2010 Times Inc. 5/13/10 .  January and February Best Buy Advertising. 2010 Barry Judge CMO of Best Buy. 5/11/10 . Muller, Turley. Best Buy Will Benefit from Reduced Competition. 2008 Seeking Alpha. 5/7/10 .  Watson, Julie. Best Buy vs Circuit City. 2006 Forbes.com inc. 5/13/10 .
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Best Buy Company Case Study
    • 2103 Words
    • 9 Pages

    Best Buy Company Case Study

    Best Buy Company is one of the leading companies in US and Canada dealing with the retailer of the consumer electronics. The company has over 400 stores worldwide offering a wide variety of products worldwide , among the company’s major products include the following ; mobile phones, gaming systems appliances, computers , televisions among other components and accessories. However, the company has adopted a variety of strategies that sees it enter successfully into the competitive markets; for instance, it has developed a culture that promotes excellence customer services, minimized or no commission on some products, employing highly experienced and skilled staffs . These have seen the Best Buy company expand to many successful branches and increased production over some a good period of time.…

    • 2103 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Better Essays

    Mkt 421 Marketing Plan Phase 1 Business Plan
    • 2034 Words
    • 9 Pages

    Mkt 421 Marketing Plan Phase 1 Business Plan

    Best Buy is a growth company focused on better solving the unmet needs of our customers, and we rely on our employees to solve those puzzles” (Best Buy, 2009-2015).…

    • 2034 Words
    • 9 Pages
    Better Essays
    Read More
  • Better Essays

    Profi Best Buy Swot Analysis
    • 1663 Words
    • 7 Pages

    Profi Best Buy Swot Analysis

    Most popular items they carry are computers, mobile phone, TV, appliances, and much more. The SWOT analysis that I did on this company is as following. Best Buy strengths are listed as following: Over two decades of brand presence, with at least one decade of extremely strong brand recognition within the US, longstanding relationship with vendors, and well-known brands. Their weakness is an area they must improve if they want to stay ahead of their competitors. For example, too many brands, poor inventory management, recent senior Leadership turnover, and weakening financial situation. Their opportunities are as following: lower overhead costs, online retailers are poised to, experimenting with, offering same-day delivery via courier, and increasing need for IT Outsourcing. The threat best buy is facing are as following: low frequency of television upgrades, cheap retailers such as Walmart, and exchange rate fluctuation. Their top competitors are Amazon, Digital River, and…

    • 1663 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Best Buy Analysis
    • 12713 Words
    • 51 Pages

    Best Buy Analysis

    According to the Best Buy’s corporate website, the company’s “unofficial” mission statement is simple, “We’re a growth company focused on better solving the unmet needs of our customers.”1 Upon reviewing this statement, our team was motivated to construct a unique plan that expands Best Buy brand and influences new target markets, while also continuing to provide growth and development in Best Buy’s products and services. Our initiative is to develop smaller stores that feature a condensed selection of consumer electronics, these stores will be strategically placed in areas where customers have unmet needs. The products, services, and staff offered will, high quality and knowledgeable service. These condensed stores will focus on the…

    • 12713 Words
    • 51 Pages
    Powerful Essays
    Read More
  • Good Essays

    Critical Analysis: Best Buy: Grasping at Straws
    • 606 Words
    • 3 Pages

    Critical Analysis: Best Buy: Grasping at Straws

    Best Buy Co., Inc. is an American public company that is a specialty retailer of consumer electronics in the United States, accounting for 19 percent of the market (1). Over the last fifteen years, Best Buy, like many retailers, is “competing with a perfect storm of disruptive technologies (2)”. It is hard to compete with those companies embraced with innovations, such as Apple and Amazon. Best Buy has lost $1.23 billion and 2.4% decreasing of revenue last year. In order to create a delighting customer atmosphere, Best Buy should focus on: engaging in innovations of e-commerce, training employees, and focusing on the target market.…

    • 606 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Critical Analysis 1
    • 1154 Words
    • 5 Pages

    Critical Analysis 1

    As a company, Best Buy can be held at fault for some of its performance struggles purely from an internal point of view. Best Buy is categorized as the “leading global electronics and appliance specialist retailer (Passport 4).” They have obtained such success from their warehouse type stores, with specific services offered inside (Geek Squad and MindSHIFT). Using this success as a basis Best Buy strategized to expand their stores in the United Kingdom, China, and Turkey, in hopes of expanding to obtain more revenue and more net profit. However this strategy backfired and these stores in the international market were forced to close in 2011. These store closures carried a 2.6 billion dollar charge with them, which were reflected in the 2012 fourth quarter results.…

    • 1154 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Blue Assist Swot Analysis
    • 504 Words
    • 3 Pages

    Blue Assist Swot Analysis

    When Best Buy got the new name in 1983 and then went public in 1985, the company…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Best Buy Strategy
    • 1790 Words
    • 8 Pages

    Best Buy Strategy

    Pricing(1): Recently in 2013, Best Buy claims to have “Everyday Low Pricing” and “Price matching” strategy to get consumers to shop during non-promotional events.…

    • 1790 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Best Buy Case
    • 465 Words
    • 2 Pages

    Best Buy Case

    Best Buy Co., Inc. is a multinational retailer of consumer electronics, home office products, entertainment software, appliances and related services.…

    • 465 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Walmart The High Cost Of Low Price Analysis
    • 426 Words
    • 2 Pages

    Walmart The High Cost Of Low Price Analysis

    Walmart, a super retail store that offers a product for almost all needs at a low price, is guilty of closing many local mom and pop shops. The documentary film “Walmart the High Cost of Low Price” illustrates the effects felt by the local small business owners when a new Walmart opens in the area. Usually when there is a grand opening of a new business in an area there is a decrease in sales. When someone as large as Walmart moves into the area it is almost impossible to keep a local shop open for long because of the overhead compared to the huge decrease in sales. This affect is not only felt by business owners but also by the surrounding community. Home owner Jon Hunter got his house appraised to sell, and because of the new Walmart soon…

    • 426 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Lets Do It
    • 641 Words
    • 3 Pages

    Lets Do It

    In 2002, the Geek Squad was purchased by electronics retailer Best Buy for approximately $3 million. Best Buy saw this as an opportunity to help its frustrated customers install and use electronic devices purchased from Best Buy. Best Buy's research indicated consumers saw this service as critical and started to place Geek Squad areas in their stores. They even created some stand-alone Geek Squad Stores and provided 24-hour telephone support. There are now more than 24,000 Geek Squad employees in the U.S., Puerto Rico, and Canada, which has helped reduce product returns of electronic devices at Best Buy by over 25 percent.…

    • 641 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Comparison Of Macy's And Best Buy
    • 321 Words
    • 2 Pages

    Comparison Of Macy's And Best Buy

    Best Buy for their services in 2012 are in full attention in Web and mobile shopping with the in-store experience. CEO Huber Joly, wanted the best showrooming experience, this is where customers visit the store…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Best Buy External Environment
    • 252 Words
    • 2 Pages

    Best Buy External Environment

    Best Buy is a part of a very competitive and popular industry. Best Buy could be placed into many different industries such as entertainment, electronics, appliances, etc. The industry sector of Best Buy’s external environment is made up of several different factors such as competitors, competitiveness, industry size, and other related industries. The factor in the industry sector that has the biggest impact on a business would most likely be the competitors. Although Best Buy may not have direct influence on their competitors, it's important that Best Buy monitors their business moves and implement effective strategies to put them ahead of others in the same industry.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Best Buy Argumentative Essay
    • 837 Words
    • 4 Pages

    Best Buy Argumentative Essay

    Best Buy is one of the last remining electronic stores left. They have, in the past, crushed the competition with several different companies going out of business. Best Buy sells every kind of electronic one could think of, computers, wearables, gaming consoles, phones, and all the accessories that go along with those. They sell brands from around the world including the largest like Apple, Sony, HP, etc. The company has grown despite the assumption of many consumers, that the amount spent on electronics and non-essential goods would not rise. They were wrong, after a large dip in 2014 Best Buy’s stock has steadily rose, now coming close to its highest value in 2006.…

    • 837 Words
    • 4 Pages
    Good Essays
    Read More
  • Best Essays

    Best Buy Failure in China (International Business)
    • 3458 Words
    • 14 Pages

    Best Buy Failure in China (International Business)

    Best Buy is a multinational retailer of consumer electronics from the United States and operates in the United Kingdom, Canada, Turkey, Mexico, China as well as its home country. Started as the Sound of Music in 1966 as an audio specialty store by Richard M. Schulze, it was later changed to Best Buy Co., Inc. by the board of directors in 1983 and is now the leading consumer electronics retailer in the United States (Pederson 2004). Best Buy sells consumer electronics as well as a wide selection of related merchandise such as music, mobile phones, computers, computer software, DVDs, Blu-ray discs, video games, digital cameras, video cameras…

    • 3458 Words
    • 14 Pages
    Best Essays
    Read More

Related Topics