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

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