The Best Buy of New Hope Commons in Durham faces considerable competition from
neighboring Wal-Mart. Traditionally, Best Buy sets itself apart through a customer centric approach.
However, this Best Buy in particular lacks a segmentation strategy at the store level, which inhibits its
potential. After investigating the company, visiting the particular store, and conducting local research we
have come up with several recommendations that could help improve the store’s profitability. These
recommendations are elaborated upon at the end of this investigation.
Implement a lifestyle strategy that would emphasize the Ray customer
Develop a B2B presence by creating a local website for Best Buy consultants
Create a store-level “back to school initiative”
Promote I-Tunes and Netflix gift cards
Best Buy is a retailer for a wide range of technological goods. The company sells a variety of
brands in consumer electronics, home appliances, and associated accessories such as: computers,
software, hardware, video games, music, DVDs, Blu-ray discs, mobile phones, digital cameras, and car
stereos. Entertainment-related products, such as TVs, audio systems, games, and music, make up the
greatest proportion of the company’s sales.
Best Buy’s acclaimed services make the brand not just a reliable retailer but also one that has
created a holistic shopping experience. Best Buy operates a growing number of Best Buy Mobile stores
in the US, where customers are offered a wide selection of cell phones, as well as a range of services
comparable to phone carrier stores. Best Buy also offers the Geek Squad, a technical service crew found
at each Best Buy location which offers computer-related support to customers. This has been a highly
successful concept and has allowed Best Buy to rise above other tech stores in reputation by providing a
richer and more fulfilling shopping experience. Best Buy was first a channel for the Geek Squad. With
this partnership, the Geek Squad was able to publicize its name while simultaneously attracting
customers to Best Buy for its new services. This distribution strategy was so successful that Best Buy
acquired the Geek Squad in 2002.
As for the Porters Value Chain, Best Buy’s primary core competency is service whereas the
competition (Wal-Mart) excels at inbound and outbound logistics and operations. Thus Best Buy should
continue to develop support activities like its HR management and infrastructure, which adds to its core
culture that has differentiated the brand. The drivers of uniqueness for the company are the