Best Buy Case Analysis
Nature of Industry, Market, and Buying Behavior Best Buy is a retail store with over 600 stores nationwide and over a thousand around the world. It is the major retailer store for electronics around the world and leads top ranked followed by Circuit City, Wal-Mart and Costco. The consumer electronics industry is growing steadily over the past few years. 2008’s projected revenue is expected to increase by 6.1%. This isn’t higher than 2007 but it is higher compared to other industries which are failing. Some items that are expected to see an increase are TV displays, gaming platforms, and next generation DVD players such as Blu-Ray and HD DVD (which Blu-Ray has won out over). As stated before the consumer …show more content…
As stated before, Best Buy does not have a place where customers can review its products for customers to see. Many other companies are already doing this, and the suppliers of the products do not like this. Another weakness is that the consumer electronics industry will not always be growing. In the past couple years it has grown steadily, but there had been times in the past where many Best Buy stores have seen its expenses increase and profits decrease.
Although Best Buy has weaknesses it also has many opportunities as well. With its well placed foothold in the market it can expand its company to different areas in the industry. It has room for improvement in store and out of store such as improvements on the website for example. There has been a growth in online purchasing in recent years that Best Buy has an opportunity to take advantage of. Also Best Buy can expand its Geek Squad operation to put separate stores dealing with just electronic help, and to improve on their already growing section of consumer help.
Threats are a main fear for Best Buy. Although they are holding steady at 17% of the market share, they are being followed close by Circuit City, Wal-Mart, and Costco. Threats also come from the customers themselves. In Best Buy stores that are not implementing the customer-centricity program some customers might find that Best Buy is not right for them, and move on to other stores for their consumer electronics needs. Overall, Best Buy is a strong