Summary Of Best Buy After Circuit City: What's Next
Anirudh Agarwal
Business Strategy
October 4, 2012
Marne Arthaud-Day
Best Buy after Circuit City: What’s Next
In this case we discuss the various reasons behind the success of the retail firm Best buy in comparison to a similar business Circuit city, which could not face the economic depression in and went bankrupt.
Best Buy is operating in an open market. There are many more firms offering similar products; and, rivalry among the consumer electronics retail industry is considered to be high. Competition has been high in this industry mainly because there has been little to no switching cost at all if any buyer makes a decision towards shopping elsewhere. Apart from that, the products are not at all isolated and differentiated since buyers can buy same type of products at nearly all of the various electronic stores. The threats related to the potential new entries in the consumer and retail electronics industry have been relatively low. Due to this consequence, there have been a lot of new entrants in the electronic market.
The low capitalization in the market implies that the situation would not be highly difficult towards entering the industry that is based solely on …show more content…
Some of Best Buy’s Growth strategy includes expansion towards new business ventures, strategic alliances and acquisition. Best Buy, therefore, needs to acquire sufficient information about their potential competition and also about the mergers and acquisition they are planning. Also given the present age when everyone wants to find the best price for themselves and the development and acceptance of the online market, Best Buy cannot just rely on mergers and would also have to develop their online store and give better deals. For instance they can start selling used electronics or refurbished equipment’s as they significantly reduce costs and attract a lot more
Business Strategy
October 4, 2012
Marne Arthaud-Day
Best Buy after Circuit City: What’s Next
In this case we discuss the various reasons behind the success of the retail firm Best buy in comparison to a similar business Circuit city, which could not face the economic depression in and went bankrupt.
Best Buy is operating in an open market. There are many more firms offering similar products; and, rivalry among the consumer electronics retail industry is considered to be high. Competition has been high in this industry mainly because there has been little to no switching cost at all if any buyer makes a decision towards shopping elsewhere. Apart from that, the products are not at all isolated and differentiated since buyers can buy same type of products at nearly all of the various electronic stores. The threats related to the potential new entries in the consumer and retail electronics industry have been relatively low. Due to this consequence, there have been a lot of new entrants in the electronic market.
The low capitalization in the market implies that the situation would not be highly difficult towards entering the industry that is based solely on …show more content…
Some of Best Buy’s Growth strategy includes expansion towards new business ventures, strategic alliances and acquisition. Best Buy, therefore, needs to acquire sufficient information about their potential competition and also about the mergers and acquisition they are planning. Also given the present age when everyone wants to find the best price for themselves and the development and acceptance of the online market, Best Buy cannot just rely on mergers and would also have to develop their online store and give better deals. For instance they can start selling used electronics or refurbished equipment’s as they significantly reduce costs and attract a lot more