BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL?

Topics: Best Buy, Magnolia Audio Video, Sales Pages: 18 (3061 words) Published: November 20, 2014
Best Buy Co. Inc.: Sustainable Customer Centricity Model? 16

12 BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL?

CASE # 3

BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL?

MGT403 STRATEGIC MANAGEMENT

PREPARED FOR

Tanvir H DeWan

Coordinator of College of Business

IUBAT

PREPARED BY

Serial Number

Name

ID

01

Shahriar Rawshon (Group Leader)

09102095

02

Md. Zakiruzzaman

09102151

03

Suchona Akter Swarna

09102163

04

Shahara Akter Eva

09102156

05

Kanij Fatama

09102165

06

Ruksana Aktar

09102130

07

Md. Al Amin

09302012

Section: B

International University of Business Agriculture and Technology

Date of Submission: 29th May, 2012

CURRENT SITUATION:

Best Buy was a specialty retailer of consumer electronics. It operated over 1,100 stores in the United States, accounting for 19% of the market. With approximately 155,000 employees, it also operated over 2,800 stores in Canada, Mexico, China, and Turkey. The company's subsidiaries included Geek Squad, Magnolia Audio Video, and Pacific Sales. In Canada, Best Buy operated under both the Best Buy and Future Shop labels.

From a strategic standpoint, Best Buy moved from being a discount retailer (a low price strategy) to a service-oriented firm that relied on a differentiation strategy. In 1989, Best Buy changed the compensation structure for sales associates from commission-based to non- commissioned-based, which resulted in consumers having more control over the purchasing process and in cost savings for the company (the number of sales associates was reduced). In 2005, Best Buy took customer service a step further by moving from peddling gadgets to a customer centric operating model. It was now gearing up for another change to focus on store design and providing products and services in line with customers' desire for constant connectivity.

MISSION:

Best Buy's mission was to make technology deliver on its promises to customers.

VISION:

"People, Technology, and the pursuit of happiness" This is the corporate vision that Best Buy strives to achieve.

HISTORY

Best Buy was originally known as Sound of Music. Incorporated in 1966, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line.

EXPANSION THROUGH ACQUISITIONS In 2000, Best Buy began a series of acquisitions to expand its offerings and enter international markets:

MAJOR PRODUCTS AND SERVICES

Best Buy is consumer electronics and appliances retailing company engaged in retailing consumer electronics, home-office products, entertainment software and related services.

The company's products and services are categorized under the following different segments:

Computers and peripherals

Home Audio and Video

Personal audio

Photo and imaging

Consumer electronics

Entertainment software

Appliances

CURRENT PERFORMANCE

CORPORATE GOVERNANCE

BOARD OF DIRECTORS:

KEY EXECUTIVES - BEST BUY CO INC. (BBY)

OTHER BOARD MEMBERS - BEST BUY CO INC. (BBY)

TOP MANAGEMENT

EXTERNAL ENVIRONMENT

GENERAL ENVIRONMENT

Best Buy opened the first Magnolia Home Theater. They also opened its first Canadian Store the company purchased Musicland, a mall-centered music retailer throughout the United States. It's acquired Geek Squad, a computer repair service provider to help develop a technological support system for customers. It acquired Pacific Sales Kitchen and Bath Centers Inc. to develop a new customer base: builders and remodelers.

Best Buy entered the international market with acquisition of future shop Ltd. leading consumer electronics. Best Buy acquired Magnolia Hi-Fi Inc., a high-end retailer of audio and video products and services, which became Magnolia Audio Video in 2004.

The same year, Best Buy also...
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