Table of Contents
1. Executive Summary
2. Situation Analysis
ii. Best Buy Today
iii. Best Buy’s New Leadership
iv. Organizational Structure
b. Best Buy’s Industry
c. Best Buy’s SWOT Analysis
i. Porter’s Five Forces
d. Capabilities and Processes
4. Products and Services
5. Industry Context
6. Best Buy Competitors
a. S.W.O.T. Analysis of Competitors
ii. Game Stop
7. Financial Ratios
9. Growth Strategy
a. Goals and Objectives
10. Strategic Execution
11. Capital Budgeting Analysis
12. Prices and Inventory
13. Implementation and Timing
a. Pro Forma
b. Scenario Analysis
c. Sensitivity Analysis
According to the Best Buy’s corporate website, the company’s “unofficial” mission statement is simple, “We’re a growth company focused on better solving the unmet needs of our customers.”1 Upon reviewing this statement, our team was motivated to construct a unique plan that expands Best Buy brand and influences new target markets, while also continuing to provide growth and development in Best Buy’s products and services. Our initiative is to develop smaller stores that feature a condensed selection of consumer electronics, these stores will be strategically placed in areas where customers have unmet needs. The products, services, and staff offered will, high quality and knowledgeable service. These condensed stores will focus on the newest and most popular consumer electronics for our youthful audience. Additionally, through these operations, customers will continue to receive helpful information and technological services. These stores will be primarily located in towns with an influx of consumer’s aged 18-30. Our strategy involves targeting college students and their parents. Our customers will still be provided the “Best Buy Renew Experience” with a reputable and knowledgeable staff that can any questions about products and services. To reinforce out strategy we have provided pricing strategies, estimating the expected rate of return, and other ratios. Our strategy involves expanding Best Buy locations and offerings; reaching a new customer segment, create a new, and powerful revenue stream. As with any new venture, however, there are many risks that our team had to acknowledge.
About Best Buy
Best Buy Co., Inc. (NASDAQ: BBY) together with its subsidiaries is a multinational retailer of consumer electronics, entertainment products, small and major appliances, and cellular phones. Best Buy currently operates on a global scale; its international operations include the U.S., Canada, China, Europe, and Mexico. This corporation has a multitude of products and services under eleven brand names: Best Buy, Five Star Appliances, Future Shop, Magnolia Audio Video, The Carphone Warehouse, Best Buy Mobile, Audiovisions, and Pacific Sales. Best Buy also offers technology services; this includes support, repair, troubleshooting and installation through the Geek Squad brand.2 Best Buy is currently headquartered in Richfield, Minnesota and has approximately 165,000 employees worldwide and has 4,370 total stores operating worldwide.2 Best Buy operates with a corporate vision stating, “People, Technology, and the Pursuit of Happiness.” This vision represents the core values of Best Buy. This company invests in its people, from “unleashing the power” of their employees, to...
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