Company Analysis
Company Analysis of Best Buy
TABLE OF CONTENTS
Company Analysis Recent History of Best Buy 5 SWOT Analysis 7 Strengths 7 Weaknesses 7 Opportunities 8 Threats 8 Typical Customer 9 Financial Analysis 9 Income Statement Analysis 9 Adapting to Change 10 Embryonic Stage 10 Growth Stage 11 Shakeout Stage 11 Maturity Stage 12 New Developments 12
Best Buy’s Strategies Business Strategies 15 Functional Strategies 15 Distinct/Core Competencies 16
Industry Analysis Major Competitors 19 Best Buy’s Position within the Industry 20 Remaining at the top 20 Becoming main source 21 Influences 21 Industry Factors 21 Impact of Factors 21 Recommendations 22
Conclusion Conclusion 24 Bibliography 25
Appendices
Common Size Income Statement 27 SWOT Matrix 28
Executive Summary
Best Buy is currently on top of the electronics retail industry. It is followed by Circuit City and Radio Shack. Best Buys’ total annual sales for last year were $35,934 million, and Circuit City was at $12,429 million (“Competitive Landscape”). If you look at the electronic retail area, which includes Best Buy and Circuit City, you will see that Best Buy is ahead by $23,505 million more dollars than Circuit City.
The factor that makes the biggest impact on the industry of electronic retail is the competition from discounted stores. The stores that sell the same merchandise as Best Buy, but at a cheaper price are what make a huge impact on the industry as a whole. After Best Buy’s last earnings miss, competition from Wal-Mart, Target, and Costco were all cited as culprits, on top of decreasing margins for various products (Lee, 2007).
Best Buy’s business strategy centers on meeting individual consumer electronics needs with end-to-end solutions, which involves greater employee involvement and increased
TABLE OF CONTENTS
Company Analysis Recent History of Best Buy 5 SWOT Analysis 7 Strengths 7 Weaknesses 7 Opportunities 8 Threats 8 Typical Customer 9 Financial Analysis 9 Income Statement Analysis 9 Adapting to Change 10 Embryonic Stage 10 Growth Stage 11 Shakeout Stage 11 Maturity Stage 12 New Developments 12
Best Buy’s Strategies Business Strategies 15 Functional Strategies 15 Distinct/Core Competencies 16
Industry Analysis Major Competitors 19 Best Buy’s Position within the Industry 20 Remaining at the top 20 Becoming main source 21 Influences 21 Industry Factors 21 Impact of Factors 21 Recommendations 22
Conclusion Conclusion 24 Bibliography 25
Appendices
Common Size Income Statement 27 SWOT Matrix 28
Executive Summary
Best Buy is currently on top of the electronics retail industry. It is followed by Circuit City and Radio Shack. Best Buys’ total annual sales for last year were $35,934 million, and Circuit City was at $12,429 million (“Competitive Landscape”). If you look at the electronic retail area, which includes Best Buy and Circuit City, you will see that Best Buy is ahead by $23,505 million more dollars than Circuit City.
The factor that makes the biggest impact on the industry of electronic retail is the competition from discounted stores. The stores that sell the same merchandise as Best Buy, but at a cheaper price are what make a huge impact on the industry as a whole. After Best Buy’s last earnings miss, competition from Wal-Mart, Target, and Costco were all cited as culprits, on top of decreasing margins for various products (Lee, 2007).
Best Buy’s business strategy centers on meeting individual consumer electronics needs with end-to-end solutions, which involves greater employee involvement and increased