bestbuy VS walmart

bestbuy VS walmart - Best Buy vs. Wal-Mart: Is There Room...

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Best Buy vs. Wal-Mart: Is There Room for Both, and Others? Published : April 01, 2009 in Knowledge@Wharton Is this a David vs. Goliath battle, or should it be more of a truce in an industry where, rather than one foe slaying the other, there is space for both adversaries to co-exist? With the demise of electronics retailer Circuit City, Best Buy and Wal-Mart Stores are ramping up their struggle to capture added share of the consumer electronics market. Best Buy, the nation's largest specialty electronics retailer, is positioning itself as the provider of quality service and sales help to consumers who are often baffled by high-tech merchandise. The company is focusing on more high-end products and new interactive features to differentiate itself from the big box atmosphere at Wal-Mart. Wal-Mart, the world's largest retailer, is using its dominance in the global marketplace across all retail categories to position itself as the low-price option in consumer electronics. The chain also has massive reach with consumers. More than 800 million people a year visit a Wal-Mart store to buy everything from groceries to sweatpants to gasoline. In what's seen as an attempt to compete with Best Buy, the chain is adding a new emphasis on electronics, including big-screen televisions and Apple iPods. Wharton faculty and industry analysts say instead of fighting to the death, both stores can coexist if they follow clearly defined strategies focusing on service and price. "The good thing, the consumer electronics market is big enough that one doesn't have to grow at the expense of the other. They can find their own space in the marketplace and prosper together," says Wharton marketing professor John Zhang . He and other Wharton faculty predict that Best Buy is likely to gain the biggest share of sales left behind following Circuit City's liquidation in March. After 60 years in business, the Richmond, Va.-based retailer, which peaked with 700 stores and sales of roughly $10 billion, became a casualty of the current recession and competition from Best Buy, Wal-Mart and others. Best Buy, which announced surprisingly strong full-year sales of $45 billion in March, has 900 U.S. stores and is the nation's largest electronics seller, according to market research firm NPD. Wal-Mart, with total sales of more than $400 billion, does not release figures for individual categories, but NPD estimates that last year it was second to Best Buy in consumer electronics sales, followed by Dell, Circuit City and Apple. Wharton marketing professor David Reibstein suggests that the key to Best Buy's strategy is offering customers knowledgeable service from a youthful, somewhat geeky sales force identified by their bright blue shirts. He imagines how a consumer confused about whether to buy an LCD or plasma screen television would approach the purchase: "Would I go to Wal-Mart or Best Buy? The answer -- no doubt about it -- is Best Buy. Best Buy has the personnel who [can] help advise me."
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bestbuy VS walmart - Best Buy vs. Wal-Mart: Is There Room...

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