Case Analysis on Best Buy

Topics: Strategic management, SWOT analysis, Marketing Pages: 4 (635 words) Published: February 9, 2014
I. Point-of-view:Frontline manager

II. Statement of the Problem:
Best buy was the leading electronics retailer in the United States. Through the years, it grew through a combination of store openings, geographical expansion and concept acquisitions. It adapted a new business model called Customer Centricity. Now, how would Best Buy be able to maintain the sustainability of its new business model?

III. Case Objectives:
To identify the points that will help Best Buy maintain the sustainability of its business model. To be able to cite factors that will help Best Buy continue its operational effectiveness and efficiency.

IV. Areas of Consideration

SWOT Analysis

1.) Change in their business model
-from product-centered to customer-centered
2.) Higher comparable store-sales gain
3.) Improvements in customer loyalty
4.) Decrease the rate in employee turnover
5.) High quality of employee work environment
-Utilize the ideas of employees
-provide more benefits such as a better workplace, reward system, ownership of company's shares 6.) Richer mix of products
7.) Classification of customers

1.) High cost transcendence from old model to new model
-labor-intensive model
-coats incurred for employee training and valuation
-short-term earnings volatility
2.) New business model isn't supported by old business model


1.) Customer pressure-free shopping
-change into a warehouse-style store with the yellow-tag logo and noncommissioned sales personnel

1.) Volatility in stock price
-fluctuation of stock price in the market
Short-term earnings volatility

Business Model: Customer Centricity

Mission: Our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers- and we rely on our...
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