Economic and industry environment
Best Buy does not manufacture any of the products it sells and thus does not occupy one specific place in the general life cycle of products. The market for electronics goods is mature and also growing. There are many products that Best Buy sells that are in the maturity stage of their life cycle, CRT televisions, home stereo, and washers and dryers. But as with all technology, many of their other products are new to the world ideas or improvements on older products. MP3 players, computers, and plasma televisions are just a few of the products marketed by Best Buy that are in the introduction or growth stages of their life cycles. As technology is continuously evolving, Best Buy devotes a large budget to monitoring emerging market trends and products, in order to stay on top of new market conditions. By constantly updating inventory, the company can ensure customers that they have come to the right place to purchase their electronic devices. Technology in general, can also be in mature and growth stages as there are many different types of products. The technology sector, as with Best Buy, does not occupy a single position in its life cycle. Many technologies are always being improved upon, invented, or becoming obsolete. The electronics market in general is the same way. There will always be demand for many electronics products. However, their sales are contingent upon economic factors. During times of recession, consumers do not spend as much on luxury goods. There can also be new technologies that come along and disrupt the climate of the market, such as the plasma TV. But when these innovations arise Best Buy is ready and simply integrates them into their product offering. Best Buy is currently growing at a phenomenal rate. With hopes of adding more than 100 stores over the next two years and sustained 36% annual growth over the past ten years, Best Buy is solidifying its position as the market leader in...
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