Situation Analysis
Situation Analysis Best Buy
For my Situation Analysis paper I have decided to focus my attention on the Minnesota, based company, Best Buy. I would like to look at ways the company can improve, and whether or not this improvement will be a benefit to the company. I will start with developing a SWOT (Strength and weaknesses, as well as its external opportunities and threats), so that I can develop a clear idea of what would be best as far as ensuring the company is able to keep up with the current times. First we can look at what is our target market and what are our customers buying within the company and outside the company.
On Best Buy Media Network, site, there lies the demographics and core values of the company. Which is made up of household income of $75,000 plus, and families with children between the ages of 25-58 years old. When it comes to gender, Best Buy leans towards 58% male base customer while having a 42% female base customer within both groups the average age being 38 years old for a single household. When looking at products, compared to six other major companies Best Buy is number one in selling laptops, cameras & camcorders, and last tablets (Nielsen, 2013).
Currently for Best Buy, everyone that is selling electronics online, along with other basic goods, are quickly sweeping up Best Buy’s favorite customers. As prices rise for electronics, consumers start to back away from future purchases. Best Buy is currently being beat out by Amazon. One of the big issues for Best Buy is that it is becoming the victim of “showrooming” where people walk in and find the products they want but then they go to another store to make their electronic purchase. Retailer, and other company is watching very closely just how common this behavior is and what can they do to stop it. Luckily, over the last year best buy sales have risen 22%, doubling their increase from a year ago (La Monica, 2014). However this is not to be expected this year; even though
For my Situation Analysis paper I have decided to focus my attention on the Minnesota, based company, Best Buy. I would like to look at ways the company can improve, and whether or not this improvement will be a benefit to the company. I will start with developing a SWOT (Strength and weaknesses, as well as its external opportunities and threats), so that I can develop a clear idea of what would be best as far as ensuring the company is able to keep up with the current times. First we can look at what is our target market and what are our customers buying within the company and outside the company.
On Best Buy Media Network, site, there lies the demographics and core values of the company. Which is made up of household income of $75,000 plus, and families with children between the ages of 25-58 years old. When it comes to gender, Best Buy leans towards 58% male base customer while having a 42% female base customer within both groups the average age being 38 years old for a single household. When looking at products, compared to six other major companies Best Buy is number one in selling laptops, cameras & camcorders, and last tablets (Nielsen, 2013).
Currently for Best Buy, everyone that is selling electronics online, along with other basic goods, are quickly sweeping up Best Buy’s favorite customers. As prices rise for electronics, consumers start to back away from future purchases. Best Buy is currently being beat out by Amazon. One of the big issues for Best Buy is that it is becoming the victim of “showrooming” where people walk in and find the products they want but then they go to another store to make their electronic purchase. Retailer, and other company is watching very closely just how common this behavior is and what can they do to stop it. Luckily, over the last year best buy sales have risen 22%, doubling their increase from a year ago (La Monica, 2014). However this is not to be expected this year; even though
References: La Monica, P. R. (2014, Aug 26). Amazon is eating Best Buy 's Lunch. Retrieved Sept. 21, 2014, from CNNMoney: WWW.money.cnn.com/2014/08/26/investing/Best-Buy-earnings/ Nielsen. (2013). Buy medianet work. Retrieved Sept. 06, 06, from www.bestbuymediakit.com Reuters. (2014, Aug 26). Best Buy Sales to Fall as More Shoppers Buy Online. Retrieved Sept 21, 2014, from The New York Times: www.nyti.ms/1pcl1ws McWilliams, G. (2004, Nov 8). Anaylzing customers, Best Buy Decides Not All Are Welcome. Retrieved Sept 27, 2014, from Wall Street Journal: http://online.wsj.com/articles/SB109986994931767086 kerin, R. A., Hartley, S. W., & Rudeluis, W. (2014). Marketing (12th ed.). New York: Mc Graw-Hill. Curtin, S. (2012, December 28). Worst CEO of 2012: Brian Dunn. Retrieved Sept 28, 2014, from Yahoo Finance: http://finance.yahoo.com/blogs/daily-ticker/worst-ceo-2012-best-buy-brian-dunn-124535841.html