Our company is interested in the success of Best Buys co and hence are happy to share with you some of our recommended strategies that will help the company maintain its competitive advantage against its competitors and make it viable for the ever-changing industry. These strategies were arrived at after critical research on the industry, the company, and its competitors.
We recommend the improvement of the Geek Squad brand. This is because it offers services that are not offered by many other companies. Unlike electronic products that you sell in most of your stores, these services will not be affected by the economy. This service could be decentralized to many countries with ease. This will help capture consumers who are not tech savvy as through this product they will be able to install the technology appliances they need. This brand could also be coupled with the introduction of loyalty plan that will ensure customers loyalty. This will also help capture a high tech, savvy individual. The company's competitor has not captured these individual's hence really great opportunity for the company.
Geek Squad is already in existence, and hence financial support will not be greatly needed for its expansion. The company though should invest in training the employees to ensure they offer the best services and fix computer appliances to the best of their ability.
I expect that this strategy will be beneficial to the company through increasing the company's customer base hence incurring the revenue received and the profits.
There are many multinational cooperatives that work toward the achievement of production of goods or service in more than one country, other than their home country. These countries face numerous challenges and opportunities that vary greatly depending on the country they are situated in. Different countries have different laws and ethical standings when it comes to business. This also gives them a huge advantage in that they have the ability to evade ethical issues in some counties and laws that work against their business and set up businesses in countries that favor their business agenda and countries that ensure that they get the most from their products and services.
Technology has eroded the sale of DVD's, DVD players making them almost absolute in the business world. The ever growing technology is a threat to the company's sales. This though can be turned around through the inclusion of new technologically viable devices like Fit bit and GoPro. Television, laptops, and tablets are also quite capable of boosting the business of the country. Many consumers are in search of the latest technology, rather than maintaining the old technology. Introduction of high tech devices will ensure that they can tap into this market.
Research shows that most consumers are increasing their online shopping time and reducing their retail altogether. This could drastically affect the sales of the company. This is because there are companies like Apple that have already taped on this market through selling their technology devices both online and offline.
The increase in some online consumer though can be turned into an opportunity for the company. Some of their competitors have not excelled in the online market. Circuit City and Target are mainly successful due to the brick and mortar location. They still believe in customer service, and in-person sales teams are the most profitable. Including an e-platform will ensure that they can capture the customers from their competitors like Amazon.
The best buy company started as an electronics company that specialized in the sale of high fidelity stereo. As of 1983, they had expanded their products to include VCRs and other electronic home appliances like television and radios. This was aimed at capturing the 15-18 years customer base. From 2005 to 2007, they became one of the largest consumer electronics retailers through consolidating with Circuit City and Radio Shack. They increased their products to include memory cards, Bluetooth speakers, smart television, USB drives and laptops.
One of the greatest strength of Best Buy is their demonstrated financial strength. Their growth since their formation has been strong. They have undergone an era of operating profit. Even compared to its main competitor Amazon, the company has exceeded the 75% return on their service and products. Their brand is also quite famous for it being known as one of the best companies I the world due to its management. In was named one of the 10 best-performing stocks. The brand is known in numerous countries since their stores have expansive coverage.
The revenue of the company is mainly from the United States; this reliance is one of its weakness. Though the company has stores in China, Europe, and Canada they majorly concentrate on US sales as most of its revenue is from consumer electronic product. This reliance can affect their revenue considerably and hence should find ways of diversifying their revenue source.
The company is committed to customer-centricity in their service provision. This ensures that their devices are based on the customer and their needs. This practice is quite important in maintaining their customers and growing their brand. The satisfaction of the consumers assures their revisit intention. Their management team is also made up of leaders, and hence responsibilities are done in a smooth process. This is a sustainable trend that can ensure that all the decisions made by the managers are done effectively and with the best interest of the company at hand.
Best buy own 2% of the domestic market in the United States making it the largest consumer electronics retailer. Their revenue is fast growing due to increase in their market share through the installation of new stores both internationally and domestically. The consumer- electronics retail industry in seasonal and cyclical with most of the sales of the company being on during holidays. The fourth quarter of the company sales are usually quite high exceeding those of other quarters. The purchase is directly related to macroeconomic factors of the consumers including unemployment, ability to get credit, consumer confidence and the housing market.
The company is faced with the ever falling prices of the products in any consumer-electronic industry. This has necessitated them to improvise functionality and differentiate them from those of the competitors. They have also tried to make them more portable as that is the growing trend. The products are customized to meet the needs of the consumer hence maintain their loyalty.
The company has adapted to this issue through the introduction of private label products. Into heir television department and brand, they built their televisions through using leftover so manufacturer from the previous years. Cannibalization of the electronic products ensures that the products reach the consumers based on their socioeconomic status. The fall in price leads to more individual having access to the technology; the issue though is that by the elite has already moved to the next generation of technology. This can clearly be seen on Phones, televisions, and laptops.
They have adopted partnership with vendors to ensure that the products they offer are innovative and drive value. These [partnerships ensure that the inshore experience is reinvigorating and they have relationships with companies that produce leading technology devices like Google, Nokia, Canon, Samsung, Sony, and Intel. They have also ensured that their customers have the ability to try out this product in real life and hence be able to experience the product.
These are some of the strategies the company has incorporated into its management to ensure that they have loyal customers and hence maintain their high revenue and increase their profits. With the growing trend, there is surety that the company will be financially capable of handling strategies that will ensure the growth of the company.
Technology is ever developing. Research has shown that most of the consumers prefer buying online their products. Only 17% of the company's revenue is originating from the online retailers. This is a major issue. The company needs to create favorable strategies that will ensure that their online presence is felt. This will ensure that they can access market even in countries that they do not have stores in. it will also help capture online consumers who are mainly youth.
The economy is ever deteriorating and hence has the ability to affect the revenue of the company. The products and services of Best Buy are mainly luxuries rather than a necessity. This makes the company be sensitive to even a small change in the economy. Consumer's macroeconomic factors also affect the revenue f the company.
The management of Best Buys, mostly the CEO, Joly, recognizes the main means of maintaining a competitive advantage over their competitors is through ensuring convenience in their services and continually offering competitive prices to their consumer. The organization structure of the company is based on this and built under five pillars that are the customer, employers, investors, and the community and supply chain, partners.
They have ensured that they are committed to a customer-centricity initiative. They have done an in-depth analysis of the consumers and hence categorically segmented them according to their needs and likes. This model ensures that they are able to identify the problems the customers are facing and provide viable solutions for these problems. They have instilled customer sales strategies that appeal to lucrative customer segments and discourage consumers who cost the company money.
The management team are expected to be passionate and have the necessary expertise to transform the company. They hire individuals who have the skills needed to carry out their task and those with the previous record of success. The sales force is the most important group of employees. They are expected to be educated, motivated and nimble. They also provide more training to ensure the service provided is uniform and they have the ability to mitigate the crisis.
The company works with vendors from leading technology companies with the aim of providing the best to its customers. They ensure that the salespersons of the company are highly trained to provide an experiment to the consumers that they can't get from online sales. They have single stores that cater to specific vendors.
The CEO realized the importance of the private label brands like the insignia, Into, Geek Squad and used this as their defense against their competitors. Insignia focused on electronic equipment like televisions, home theaters, audio players, car stereo among others. Dynes produced computers and entertainment products at an affordable price. Inuit offered storage solutions for the products of the different brands. Geek squad offered computer repair and installation services for computer accessories cables.
The company is committed to the sustainability of the environment and corporate social responsibility. They have started recycling programs that have ensures that the equipment is not thrown in landfills. They have also reduced their carbon footprints.
Implementable Strategic Alternatives
Best buy products are luxury products. This makes the company prone to any fluctuation in the economy. Fluctuation in the economy will lead to a change in the amount of disposable income for consumers and hence affect the rate of retaining sales. The products that are being sold by the company are considered luxury items and...
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Geek Squad Brand Assessment With Recommendation Letter. (2022, Mar 29). Retrieved from https://proessays.net/essays/geek-squad-brand-assessment-with-recommendation-letter
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