We must begin by introducing Best Buy Co. and the history behind the company, before we move on to a detailed case analysis of the organization. Best Buy Co. is a multinational retailer in which it currently operates in the service sector, under the Electronic Stores Industry, with headquarters in Richfield, Minnesotta. The organization serves primarily the U.S., Europe, Canada, and China. The company was originally known as Sound of Music, incorporated in 1966, and started by Richard M. Schulze and Gary Smoliak. The company focused in retail of audio components while expanding to video products eventually, and expanding to appliances in the early 1980s. In 1989, Best Buy Co. reinvented itself, and pursued a product differentiation strategy by transitioning from low price strategy to a service-oriented approach; this is a notable change which brings us to the point of the start of this analysis. Today, Best Buy Co. retains 167,000 full time employees, with a n impressive 50.70 billion dollars in revenue, and 12.57 billion dollars in gross profit. (BBY-NYSE)
History, Development, Growht of the Company Over Time
It was also in the 80’s, that Best Buy began implementing a structural change to improve its differentiation strategy. Executives noted that in order to meet its objective, it would need to focus on some key items: providing innovative products, having top-notch employees, and providing superior customer service. All of this needed to be accomplished while also facing an increase in market competition, rising operational costs, and financial turbulence. (Alan N. Hoffman) Best Buy knew that a its mission was to be geared towards It is important to mention that since the year 2000 Best Buy Co. has began to expand through a form of business acquisitions in order to promote its business objectives. The company’s business objectives include: market share growth, connected digital solutions, higher share of international...
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