Case Study Of Best Buy: Bbby

Best Buy: BBY
The Best Buy Company was founded by Richard M. Schulze and his partner. His Partner was Gary Smolaik. Richard M. Schulze was a former Air National Guard. Richard was at the age of 25 when he founded Best Buy. They found this company in the year 1966. In the beginning the store was named “Sound Of Music” and only sold home and car stereo equipment. In their first year they reached sells in excess of $160.00. In 1970 Richard became the sole owner of Best Buy by buying the other half from his partner. By only selling stereos Richard realized the company had very little future. In 1982 the name was changed to Best Buy. That same year Richard decided to sell a more variety such as Vcr’s and appliances. In 1981, the Roseville, Minnesota, Sound of Music location, at the time the largest and
The store’s roof was sheared off and showroom destroyed, but the storeroom was left intact. In response, Schulze decided to have a “Tornado Sale” of damaged and excess stock in the damaged stores parking lot. He poured the remainder of his marketing budget into advertising the sale, promising “best buys” on everything. Sound of Music made more money during the four-day sale than it did in a typical month. In 1984 the company changed to a superstore format and opened seven more stores. In 1987 they opened 25 more stores. In 1989, the company went on to unveil the new idea of ‘Concept II’ stores. The plan was to open large showrooms which would be well stocked with electronics goods so that people could pick it directly from the shelves. This concept was able to decrease the number of salespeople and attract more and more new customers to this new way of shopping. From 1996 to 1997 Best Buy opened 95 stores as their popularity grew. In 2003, the company was selling every possible electronic device under their roof from washing machines to music players to mobile phones that too from every brand and in every shape, color, and size. As of 2013 Best Buy has