Problems of Best Buy
Overview:
Best Buy Co. is a specialty retailer of consumer electronics, entertainment software, home office products, appliances and related services. The company operates both in the domestic and the international segment. Its domestic segment consists of all Best Buy stores and online operations within the United States, including the brand names: Best Buy, Geek Squad, Magnolia Audio Video, Pacific Sales Kitchen and Bath Centers and Speakeasy. Its international business covers Canada and most recently China.
With only 42 years of existence, the company has come a long way since Richard M. Schulze and business partner James Wheeler decided to open an audio specialty store called Sound of Music. Only 4 years later they had reached the $1 million mark in annual revenues and by 1984 they had opened eight more stores and changed their name to Best Buy Co., Inc. The year 1987 saw sales of $240 million, an expansion to more than 20 stores and the company’s debut on the New York Stock Exchange. Less than a decade later, Best Buy had surpassed Circuit City to become the nation 's top consumer electronics retailer.
Of course, there were also a few bumps along the way. In 2001 Best Buy paid $696 million to acquire Musicland, a mall-based retailer of CDs. Unfortunately, that same year, Internet downloads were on high demand and after a round of lay offs and store closings, the company sold Musicland.
In 2002, Brad Anderson - who had worked his way up since starting as a commissioned salesman in 1973 - succeeded Schulze as Best Buy 's CEO. Given the growth in complexity in digital devices, the new CEO saw huge potential in the technical services market and that October the company acquired Geek Squad, a 24-hour computer support taskforce. Best Buy started its international expansion that same year, opening the first Best Buy store in Canada near Toronto. They have now expanded to China and recently announced the opening of its first pilot stores in Mexico and
Best Buy Co. is a specialty retailer of consumer electronics, entertainment software, home office products, appliances and related services. The company operates both in the domestic and the international segment. Its domestic segment consists of all Best Buy stores and online operations within the United States, including the brand names: Best Buy, Geek Squad, Magnolia Audio Video, Pacific Sales Kitchen and Bath Centers and Speakeasy. Its international business covers Canada and most recently China.
With only 42 years of existence, the company has come a long way since Richard M. Schulze and business partner James Wheeler decided to open an audio specialty store called Sound of Music. Only 4 years later they had reached the $1 million mark in annual revenues and by 1984 they had opened eight more stores and changed their name to Best Buy Co., Inc. The year 1987 saw sales of $240 million, an expansion to more than 20 stores and the company’s debut on the New York Stock Exchange. Less than a decade later, Best Buy had surpassed Circuit City to become the nation 's top consumer electronics retailer.
Of course, there were also a few bumps along the way. In 2001 Best Buy paid $696 million to acquire Musicland, a mall-based retailer of CDs. Unfortunately, that same year, Internet downloads were on high demand and after a round of lay offs and store closings, the company sold Musicland.
In 2002, Brad Anderson - who had worked his way up since starting as a commissioned salesman in 1973 - succeeded Schulze as Best Buy 's CEO. Given the growth in complexity in digital devices, the new CEO saw huge potential in the technical services market and that October the company acquired Geek Squad, a 24-hour computer support taskforce. Best Buy started its international expansion that same year, opening the first Best Buy store in Canada near Toronto. They have now expanded to China and recently announced the opening of its first pilot stores in Mexico and