I. MissionBest Buy has been changing their mission statement through the years which can be looked at as their weakness not being able to provide a stable one.
"Our formula is simple: we're a growth company focused on better solving the unmet needs of our customers-and we rely on our employees to solve those puzzles. Thanks for stopping. "Company's mission in 2005: "Best Buy mission is to bring technology and consumers together in a retail environment that focuses on educating consumers on the features and benefits of technology and entertainment products".
Revised Mission statement: Best Buy's mission is to bring technology and consumers together in a retail environment. We strive to meet and exceed our customers' expectations and preserve our public image as the leading low-cost specialty retailer. We are dedicated to providing the best quality electronics and home office equipment in the North American retail industry. As a leading technology provider we strive to incorporate the best, most reliable technology into our everyday operation to ensure efficiency and maximize revenues. Best Buy as a whole feels that success is not only dependent on our growth and profitability, but also the well being of our employees and the satisfaction of our customers.
The latest motto however is "Buyer be happy."II. SWOT Analysis (minimum 3 each)A. Strengths1.Largest electronic specialty retailer in the USBest Buy's strength is that they are a very large, well known company. They have always been on the forefront of carrying the newest and most technologically advanced products. They operate two main business segments: domestic and international.
2.Offers variety of products at lower prices compared to smaller retailersBest Buy provides good quality products at a great price. They also understand that customers want hassle free shopping, which draws consumers into their store to window shop. For many industries this may not be strength, but for Best Buy it is.
By having the best price, Best Buy can afford to have window shoppers. They will be able to see all of the new merchandise and if they do comparison shop, the will return to Best Buy.
3.Strong Customer Service - the staff is friendly, knowledgeable, and approachable.
Blue shirts and the Geek Squad provide Best Buy with better technical customer service then, say, Sears or online competitors like Tiger Direct or Amazon.
4.Strong financing and Market ShareBest Buy leads the consumer electronics retail market in the US with total revenues reaching $45 billion in fiscal 2008. It has about 21% market share of the consumer electronics retail market the US. Leveraging its large scale of operations, the company has been able to increase its bargaining power with consumer electronics vendors and offer more competitive prices. Because of its large operation, the company is able to capture the market and supply the products on spirited prices.
5.Different Store Brand ImagesBest Buy has a unique ability to appeal to different types of customers using different store brand images and subsidiaries:•Insignia - Focuses on high quality electronic equipment, including HDTVs, blu-ray players, home theater systems, digital imaging, and GPS.
•Dynex - Focuses on computer and entertainment accessories such as storage media, data and power cables, webcams, and office supplies, with recent forays into electronics such as high definition LCD televisions.
•Init - Focuses on storage products such as media storage, equipment bags, totes and furniture for home theaters.
•Geek Squad - Focuses on high end computer accessories and cables.
•Rocketfish - Focuses on high end cables primarily used with home theater installation and setup as well as on computer and gaming accessories.
•Napster•Speakeasy•FutureShopB. Weakness:1.Diversify salesThe revenue which is continuously generating by the Best buy's are only from one sector i.e. from flat panel TV's. It is the biggest...
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