Team E Best Buy Report

Team E Best Buy Report - Introduction The Best Buy of New...

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Introduction 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 Company Definition 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
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interrelationships it builds with customers and suppliers. As a result, companies trust Best Buy; for example, Best Buy was the first to distribute Apple products outside Apple stores. Category Definition and Analysis
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Team E Best Buy Report - Introduction The Best Buy of New...

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