Essay On Best Buy
Best Buy: Case Study Analysis
Company site: www.bestbuy.com Stats:
Approximately 180,000 employees, 1,172 stores, $35.9 billion revenue
Industry:
Electronics/Appliances
About Best Buy:
“Best Buy began as a small specialty audio retailer in 1966. Today the company is the world's largest consumer electronics dealer. While many factors contributed to Best Buy's success, one of the most important is its focus on understanding consumer behavior. Best Buy has used consumer research to better understand customer needs and wants and to guide its decisions about the operation of its stores. Some changes that were driven by Best Buy's understanding of consumers included its shift to discounted prices, the creation of superstores, …show more content…
and the elimination of commissioned sales representatives. Most recently, Best Buy adopted a "customercentric" approach to connecting with customers. The approach has used research to improve store design, merchandise offerings, and services as it seeks to connect with customers and differentiate itself from Circuit City, Wal-Mart, Costco, and other mass marketers and consumer electronic retailers.”
(From: https://esc.angellearning.com/section/default.asp?id=EMPU%2D87XTB5)
Challenges company faces: • Competition from other stores/operations that also sell electronics such as Circuit City, J&R Music World, Sears, Walmart, Costco • Customer and Employee demographic of women-company wants to attract not only female customers but female employees as well • Global Expansion Goals • Develop and maintain customer satisfaction • Develop and maintain employee satisfaction • Develop a system to best keep track of customer demographics and customer purchases
Solutions: • Monitor global competition by doing competitive research • Color coded store allows customer-friendly system of locating products • Continual research to keep abreast of what the customer wants • Use of different channels to market/promote the company name and establish a “Best Buy” presence, example: automated kiosks at airports • Expand by offering services to individual businesses by offering businesses customized attention (ie: www.bestbuybusiness.com) also partners with the organization SCORE for “Small Business Broadband Initiative” (http://www.bby.com/2010/04/21/best-buy-joins-score-at-national-kick-off-briefing-for-small-business-broadband-initiative/) • Implement and develop a customer rewards program that will offer points to the customer for each purchase. This will allow the computer to scan in customer individual contact information, such as their names and addresses as well as purchases. This will allow for more accurate demographic studies. The program will be called “Reward Zone” and will reward the customer with 1 point for every $1 spent which they’ll be able to use as future discounts. • Continue to recruit female talent for the company. • Use of social networking sites for employee communication which will encourage employees to contribute their ideas (http://mattsingley.com/blog/2009/04/best-buy-crowdsources-employees/) • Launch the “Connected World” initiative which will help “bridge the connectivity gap in selection, service, price and convenience.” (http://www.bby.com/2010/10/06/best-buy-unveils-new-research-study-on-the-connected-world/) • Monitor consumer opinions by creating forums in the www.bestbuy.com site.
Results: • In Best Buy’s efforts to improve the vitality of the communities where Best Buy employees and customers live and work, in 2010, Best Buy has donated a combined 25.2 million dollars to those communities. • Increase of profits-Company’s quarterly cash divident raised by 7% (http://www.bby.com/2010/06/24/best-buy-increases-dividend-7/) • Global expansion increasingly successful – Best Buy launches new store in the U.K.
(http://www.bby.com/2010/04/30/best-buy-opens-its-doors-to-the-uk/)
• Best Buy Americas President Shari Ballard named to 2010 FORTUNE Magazine 50 Most Powerful Women in Business List (http://money.cnn.com/magazines/fortune/mostpowerfulwomen/2010/index.html) • Best Buy appoints Bill Hoffman as Senior Vice President, Consumer Insights. “In this role, Hoffman is driving key decision making and high level strategy for Best Buy’s customer insights unit, which is responsible for analyzing consumer data and trends to generate actionable consumer insight.” (http://www.bby.com/2010/04/28/best-buy-names-hoffman-svp-of-consumer-insights/)
Ethisphere names Best Buy to 2010 list of “World’s Most Ethical Companies” (http://www.bby.com/2010/03/24/ethisphere-names-best-buy-to-2010-list-of-worlds-most-ethical-companies/)
Because of Best Buy’s success with completion of business goals Best Buy has achieved such a favorable status with top brands that they are now able to offer exclusivity with top brands such as “Panasonic”
(http://www.bby.com/2010/03/10/panasonics-groundbreaking-full-hd-3d-home-entertainment-system-now-exclusively-available-at-best-buys-magnolia-stores/)
Best Buy selected for 2010 FORTUNE List of 50 Most Admired Companies (http://www.bby.com/2010/03/03/best-buy-selected-for-2010-fortune-list-of-50-most-admired-companies/)
Best Buy Adds Tactile Keypads to Improve Checkout Experience for the Visually Impaired (http://www.bby.com/2010/03/31/best-buy-adds-tactile-keypads-to-improve-checkout-experience-for/)
Company site: www.bestbuy.com Stats:
Approximately 180,000 employees, 1,172 stores, $35.9 billion revenue
Industry:
Electronics/Appliances
About Best Buy:
“Best Buy began as a small specialty audio retailer in 1966. Today the company is the world's largest consumer electronics dealer. While many factors contributed to Best Buy's success, one of the most important is its focus on understanding consumer behavior. Best Buy has used consumer research to better understand customer needs and wants and to guide its decisions about the operation of its stores. Some changes that were driven by Best Buy's understanding of consumers included its shift to discounted prices, the creation of superstores, …show more content…
and the elimination of commissioned sales representatives. Most recently, Best Buy adopted a "customercentric" approach to connecting with customers. The approach has used research to improve store design, merchandise offerings, and services as it seeks to connect with customers and differentiate itself from Circuit City, Wal-Mart, Costco, and other mass marketers and consumer electronic retailers.”
(From: https://esc.angellearning.com/section/default.asp?id=EMPU%2D87XTB5)
Challenges company faces: • Competition from other stores/operations that also sell electronics such as Circuit City, J&R Music World, Sears, Walmart, Costco • Customer and Employee demographic of women-company wants to attract not only female customers but female employees as well • Global Expansion Goals • Develop and maintain customer satisfaction • Develop and maintain employee satisfaction • Develop a system to best keep track of customer demographics and customer purchases
Solutions: • Monitor global competition by doing competitive research • Color coded store allows customer-friendly system of locating products • Continual research to keep abreast of what the customer wants • Use of different channels to market/promote the company name and establish a “Best Buy” presence, example: automated kiosks at airports • Expand by offering services to individual businesses by offering businesses customized attention (ie: www.bestbuybusiness.com) also partners with the organization SCORE for “Small Business Broadband Initiative” (http://www.bby.com/2010/04/21/best-buy-joins-score-at-national-kick-off-briefing-for-small-business-broadband-initiative/) • Implement and develop a customer rewards program that will offer points to the customer for each purchase. This will allow the computer to scan in customer individual contact information, such as their names and addresses as well as purchases. This will allow for more accurate demographic studies. The program will be called “Reward Zone” and will reward the customer with 1 point for every $1 spent which they’ll be able to use as future discounts. • Continue to recruit female talent for the company. • Use of social networking sites for employee communication which will encourage employees to contribute their ideas (http://mattsingley.com/blog/2009/04/best-buy-crowdsources-employees/) • Launch the “Connected World” initiative which will help “bridge the connectivity gap in selection, service, price and convenience.” (http://www.bby.com/2010/10/06/best-buy-unveils-new-research-study-on-the-connected-world/) • Monitor consumer opinions by creating forums in the www.bestbuy.com site.
Results: • In Best Buy’s efforts to improve the vitality of the communities where Best Buy employees and customers live and work, in 2010, Best Buy has donated a combined 25.2 million dollars to those communities. • Increase of profits-Company’s quarterly cash divident raised by 7% (http://www.bby.com/2010/06/24/best-buy-increases-dividend-7/) • Global expansion increasingly successful – Best Buy launches new store in the U.K.
(http://www.bby.com/2010/04/30/best-buy-opens-its-doors-to-the-uk/)
• Best Buy Americas President Shari Ballard named to 2010 FORTUNE Magazine 50 Most Powerful Women in Business List (http://money.cnn.com/magazines/fortune/mostpowerfulwomen/2010/index.html) • Best Buy appoints Bill Hoffman as Senior Vice President, Consumer Insights. “In this role, Hoffman is driving key decision making and high level strategy for Best Buy’s customer insights unit, which is responsible for analyzing consumer data and trends to generate actionable consumer insight.” (http://www.bby.com/2010/04/28/best-buy-names-hoffman-svp-of-consumer-insights/)
Ethisphere names Best Buy to 2010 list of “World’s Most Ethical Companies” (http://www.bby.com/2010/03/24/ethisphere-names-best-buy-to-2010-list-of-worlds-most-ethical-companies/)
Because of Best Buy’s success with completion of business goals Best Buy has achieved such a favorable status with top brands that they are now able to offer exclusivity with top brands such as “Panasonic”
(http://www.bby.com/2010/03/10/panasonics-groundbreaking-full-hd-3d-home-entertainment-system-now-exclusively-available-at-best-buys-magnolia-stores/)
Best Buy selected for 2010 FORTUNE List of 50 Most Admired Companies (http://www.bby.com/2010/03/03/best-buy-selected-for-2010-fortune-list-of-50-most-admired-companies/)
Best Buy Adds Tactile Keypads to Improve Checkout Experience for the Visually Impaired (http://www.bby.com/2010/03/31/best-buy-adds-tactile-keypads-to-improve-checkout-experience-for/)