These results were in marked contrast to four years of declining comparable-store sales from 2010 through 2013. People know they can trust in Best Buy to have the latest innovations, so today's rapid advancements in technology should fuel Best Buy for years to come. This value may create by increasing differentiation in existing product or decrease its price. Best Buy plans to open 100 new small stores to replace the 50 big stores that they are closing. Often readers scan through the business case study without having a clear map in mind. We encourage feedback related to the pros and cons of the approach we have developed herein, including any constructive suggestions for improvements.
Second, please summarize the key points from the studies identified above related to consumer omni-channel behaviors in terms of likely opportunities and threats to Best Buy over the next 1-2 years. In 2008, the team took a big step forward launching the new Best Buy Community, powered by Lithium Technologies. You can use the following strategy to organize the findings and suggestions. In addition, alternatives should be related to the problem statements and issues described in the case study. We also found that if it was a bigger decision like a computer or higher ticket product we would study out the product more, but if it were a lower ticket iteam we worked more on inpulse.
About four percent of households in China used credit cards, compared to 75 percent in the United States Ivey, 2006. As a company, Best Buy can be held at fault for some of its performance struggles purely from an internal point of view. Neither you, nor the coeditors you shared it with will be able to recover it again. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts. They found out that losses produced by Devil customers can wipe out profits generated by Angel customers.
The plan was to open three stores in less than two years in China while Five Star was planning on opening 25 additional stores. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. After defining the problems and constraints, analysis of the case study is begin. If the company holds some value then answer is yes. In 2002 Best Buy merged with Geek Squad. Finally, the appliance department shows the lowest percentage of the sales, low market share and negative industry growth.
The consumers first create a want of the product and this is what Best Buy specilizes in, creating and satisfying the want. They have always been on the forefront of carrying the newest and most technologically advanced products. Step 9 - Take a Break Once you finished the case study implementation framework. There may be multiple problems that can be faced by any organization. During this time, the consumers were usually more price sensitive, and were willing to accept low customer service in exchange for lower prices. Best Buy reduced its asset base by closing down low-performing stores and also improved equivalent to sales from assets through store space optimization.
In 2012, the rising popularity of price-matching apps for mobile phones made price differences between retailers transparent, online and offline. The four strategies they plan to use to get to this financial goal are Customer Centricity, Efficient Enterprise, Service, and Entertainment. In 2001, Best Buy acquired Future Shop Ltd. Lets take a look at how the company fared on each of these metrics during this period 2011-14. As shown in Exhibit 7, Best Buy is the only competitor within the consumer electronics industry that has experienced a recent trend of decreasing sales.
Question 2: Please describe general B2B changes over the recent past and how these are affecting consumer electronics retailers such as Best Buy. Can you identify the reasons for these declines and how they have affected competitiveness in your industry over the last 3-5 years? The strengths and weaknesses are obtained from internal organization. When we are writing case study solution we often have details on our screen as well as in our head. Also, manipulating different data and combining with other information available will give a new insight. The external analysis identifies several opportunities including economies of scale, complementors, and global expansion. Please include a bibliography of your sources. The following questions were posed to the Best Buy executive in October 2014.
We belive that this holds true for the whole of the consumer world. Wells, Galen Danskin : Harvard Business School 23 pages. That being said, they are the 10th largest online retailer in the U. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused. However, introduction should not be longer than 6-7 lines in a paragraph.