Best Buy Internal and External Analysis
Internal Analysis: Core Competencies, Strengths and Weakness
The (RCC) / VC model is used to determine how Best Buy bundled its resources to create capabilities and how these capabilities become the company’s core competencies which will be their source of competitive advantage.
TANGIBLE RESOURCES
Financial Resources
- Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011.
- Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.
- Majority of Best Buy acquisitions of foreign electronics companies have been profitable.
- Domestic sales contribute 74% of the total gross revenues- $37.2 million compared to $13.1 billion from the international segment.
- Total revenue has been increasing over the years from $45,015 to $49,694 to $50,272 during the period of 2009 to 2011.
- From 2007 to 2010, international gross revenue increased an average of 15% per year as opposed to less than 6% in the domestic segment.
Best Buy has positive growth from 2007 to 2010. However these growths falls below S&P retailing group and S&P 500.
Organizational Resources
- Richard Schulze buys out his partner in the 70s.
- Brad Anderson took over the position as CEO when Dick Schulze resigned.
- Brian Dunn accepted the position as CEO in 2009 when Brad Anderson retired.
- 65% institutional and mutual fund owners, 19% insiders and large-block shareholders with the remaining shares held by various investors.
With the great fore sight of the Richard Schulze, he managed to find Brad Anderson and thereafter Brian Dunn to succeed as CEO. The experience of them enables Best Buy to become leaders in the industry.
Physical Resources
- Best Buy has 1,400 stores in North America and over 2,600 stores in Europe and China.
- Superstores in Canada, China, Europe, Mexico and Turkey and converted the outlets in China to Five Star branded stores.
- The first big box store was opened in 2010 and another 9
The (RCC) / VC model is used to determine how Best Buy bundled its resources to create capabilities and how these capabilities become the company’s core competencies which will be their source of competitive advantage.
TANGIBLE RESOURCES
Financial Resources
- Revenue growth slowed to a miniscule 1.6% over the course of fiscal year 2011.
- Domestic revenue reaches $37.1 billion while International revenue reaches $13.1 billion in 2011.
- Majority of Best Buy acquisitions of foreign electronics companies have been profitable.
- Domestic sales contribute 74% of the total gross revenues- $37.2 million compared to $13.1 billion from the international segment.
- Total revenue has been increasing over the years from $45,015 to $49,694 to $50,272 during the period of 2009 to 2011.
- From 2007 to 2010, international gross revenue increased an average of 15% per year as opposed to less than 6% in the domestic segment.
Best Buy has positive growth from 2007 to 2010. However these growths falls below S&P retailing group and S&P 500.
Organizational Resources
- Richard Schulze buys out his partner in the 70s.
- Brad Anderson took over the position as CEO when Dick Schulze resigned.
- Brian Dunn accepted the position as CEO in 2009 when Brad Anderson retired.
- 65% institutional and mutual fund owners, 19% insiders and large-block shareholders with the remaining shares held by various investors.
With the great fore sight of the Richard Schulze, he managed to find Brad Anderson and thereafter Brian Dunn to succeed as CEO. The experience of them enables Best Buy to become leaders in the industry.
Physical Resources
- Best Buy has 1,400 stores in North America and over 2,600 stores in Europe and China.
- Superstores in Canada, China, Europe, Mexico and Turkey and converted the outlets in China to Five Star branded stores.
- The first big box store was opened in 2010 and another 9