Best Buy Co. Inc. (2009)
MGMT 479
Disc 3 Case study #22 Best Buy Co Inc. (2009)
Resources:
Cash generated by operations (sales) Public Company Lower cost structure Aggressive acquisition policy (2000-2009) Vertical integration, range from technology to Kitchen appliances Private-label credit card Suppliers Economics of scale Brands Best Buy.com (internet sales) Magnolia Home Theater (High end audio visual products and services) Future Shop (international market, Canada) Geek Squad (computer repair service provider) Pacific Sales Kitchen and Bath Centers Speakeasy (broadband, voice, data, and information technology services) Best Buy Mobile (50% share in Best Buy Europe) Napster (digital download provider) …show more content…
Capabilities: Managing 8 territories, each territory divided into districts which a retail field officer oversees the district managers Moved from being a discount retailer to a service-oriented firm that relied on a differentiation strategy Commission-based to non-commission-based which resulted in a cost savings for the company International & Domestic acquisitions Sustained Growth and earnings Customer-Centric operating model Service- Oriented firm, differentiation strategy Employee Technological Expertise and Knowledge Training program Marketing Meets customers needs with End-to-End solutions Be at the forefront of technological advances Address the needs of customer lifestyle groups
Core Capabilities: Brand Name Customer Centricity Model Retaining knowledgeable talented employees Fulfills customers need with End-to-end solutions Geek Squad
Finding of …show more content…
Prior to 2005 Best Buy focused more on customer groups such as affluent professional males, young entertainment enthusiasts, upscale suburban mothers, and technologically advanced families. After the transition, Best Buy focused more on customer lifestyle groups such as affluent suburban families, trendsetting urban dwellers, and the closely-knit family of Middle America. Best Buy is focused on suburban families and urban dwellers but they should still focus on the young entertainment enthusiast, and the market segments from 2005. In this case deciding to move away from technologically advanced families (that do also live outside of large populated areas) and professional men and women is a big mistake. If the company directed more advertising at the young entertainment enthusiast, they would increase their market share. By utilizing internet advertising on You-Tube or other video streaming web sites, the company can create mini commercials that showcase the end-to-end customer experience that the company can provide. My teenager watches more advertisements on You-tube than we watch during a Sunday night football game. If Best buy invested some of their already large advertising budget on mini commercials that pop up before you can view your selected You-Tube programing. For video game segments; Vanoss, Grand Theft auto and Battlefield which have quite a You-Tube following. Those
Disc 3 Case study #22 Best Buy Co Inc. (2009)
Resources:
Cash generated by operations (sales) Public Company Lower cost structure Aggressive acquisition policy (2000-2009) Vertical integration, range from technology to Kitchen appliances Private-label credit card Suppliers Economics of scale Brands Best Buy.com (internet sales) Magnolia Home Theater (High end audio visual products and services) Future Shop (international market, Canada) Geek Squad (computer repair service provider) Pacific Sales Kitchen and Bath Centers Speakeasy (broadband, voice, data, and information technology services) Best Buy Mobile (50% share in Best Buy Europe) Napster (digital download provider) …show more content…
Capabilities: Managing 8 territories, each territory divided into districts which a retail field officer oversees the district managers Moved from being a discount retailer to a service-oriented firm that relied on a differentiation strategy Commission-based to non-commission-based which resulted in a cost savings for the company International & Domestic acquisitions Sustained Growth and earnings Customer-Centric operating model Service- Oriented firm, differentiation strategy Employee Technological Expertise and Knowledge Training program Marketing Meets customers needs with End-to-End solutions Be at the forefront of technological advances Address the needs of customer lifestyle groups
Core Capabilities: Brand Name Customer Centricity Model Retaining knowledgeable talented employees Fulfills customers need with End-to-end solutions Geek Squad
Finding of …show more content…
Prior to 2005 Best Buy focused more on customer groups such as affluent professional males, young entertainment enthusiasts, upscale suburban mothers, and technologically advanced families. After the transition, Best Buy focused more on customer lifestyle groups such as affluent suburban families, trendsetting urban dwellers, and the closely-knit family of Middle America. Best Buy is focused on suburban families and urban dwellers but they should still focus on the young entertainment enthusiast, and the market segments from 2005. In this case deciding to move away from technologically advanced families (that do also live outside of large populated areas) and professional men and women is a big mistake. If the company directed more advertising at the young entertainment enthusiast, they would increase their market share. By utilizing internet advertising on You-Tube or other video streaming web sites, the company can create mini commercials that showcase the end-to-end customer experience that the company can provide. My teenager watches more advertisements on You-tube than we watch during a Sunday night football game. If Best buy invested some of their already large advertising budget on mini commercials that pop up before you can view your selected You-Tube programing. For video game segments; Vanoss, Grand Theft auto and Battlefield which have quite a You-Tube following. Those