1. The key factors that lead to Best Buy's success include:
Growth in the consumer electronics retail sector and the internet boom: Constant growth in the demand for consumer electronics has grown over the previous decades which has supported Best Buy's successful turnout into the top consumer electronics store. The internet also played a significant role in increasing the sales of Best Buy as it had already ramped up its computer product offerings prior to 1995.The internet boom positively affected the consumer electronics industry in general.
Knowledgeable sales staff:
Best Buy's salespeople did not work on commission which helped creating a low pressure shopping experience for the customers and built a consumer friendly environment. This also lead Best Buy to attract a well read sales force which would guide the customers to make the choices more customized to themselves and helped the buyers in decision making. Also merchandise was arranged by brand name instead of by price range. Both of these were unusual practices in the superstore industry but worked well for Best Buy.
Focus on customer service (Geek Squad):
Best Buy's belief in offering outstanding customer service through product warranties, personal services and at-home delivery helped Best Buy to differentiate itself from other competitors in the space. This also helped Best Buy in gaining trust and building a strong customer base. Acquisition of the Geek Squad to service computers 24x7 differentiated Best Buy as an excellent product and service provider.
Target market segmentation by Best Buy's Customer-Centric approach and extensive research and analysis of its customer base helps Best Buy in configuring its stores and training its work force to cater to the individual needs of its market segments which encourages customers to revisit for multiple purchases. Also the approach to customize the store at times in terms of some local requirements helps Best Buy in...
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