Best Buy is a multinational retailer of consumer electronics with over 1100 stores and 180,000 employees worldwide. It aims to provide a wide selection of reasonably priced technology products and services like Geek Squad support. However, it faces threats from online competitors like Amazon and needs to improve its customer service reputation. Its new strategy focuses on connecting locally through social media, employee use of in-store tablets, and a tablet-specific app to engage customers and build relationships.
2. About Best Buy
• Multinational Retailer with
brick and mortar and online
presence.
• 1100 stores with over 180,000
employees World Wide.
• Best Buy still holds 22%
market share in the US.
3. What Best Buy Sells
• Consumer Electronics
• Home Office
• Entertainment Software
• Appliances
4. Services: Geek Squad
• Computer maintenance and configuration.
• Home Theater installation.
• Car audio and Video Installation.
5. Target Market
• Men and Woman of the middle
class ages 16-35.
• Parents with students in college
ages 36-50.
6. Value Proposition
Best Buy provides an assortment of high quality and
reasonably priced electronics and accessories for consumer
with expendable incomes and a desire for the newest
innovations in the technology industry. Best Buy is also
committed to delivering technology solutions that enable
easy access to people, ideas, knowledge and
entertainment. To do so Best Buy is committed to
developing and implementing technology solutions to their
consumers and communities
7. The Current Strategy
• To become more profitable ,Best
Buy is closing 50 “Big Box” stores
and opening 100 Mobile Stores.
• Omni-Channel Retailer
8. Strategy Continued
• Provide many outlets for consumers to stay connected to
the Best Buy Brand.
Examples: Twelpforce, Community Forums, rating
and reviews, geekblog, Best Buy You Tube Channel,
and IDEAX.
• Consumers can also connect via Facebook and Twitter.
• Maintain an interactive Facebook page.
9.
10. SWOT Analysis
Strengths: Weakness:
• Wide product selection in consumer • Customer service isn’t viewed highly
electronics • Online product assortment doesn’t match up
• Well-developed digital and social to In-store
• Dual Branding and Acquisition Strategies
• Offers Services like Geek Squad to assist
costumers
Opportunities: Threats:
• Further investment internationally • Amazon’s lower prices online
• New forms of social media ex. Instagram, • Larger stores department stores with such as
Aurasma, Pinterest Walmart
• Tablet-commerce • Internet downloading and streaming effects
DVD and CD sales
11. Issues with Best Buy
• Felt they were unstoppable after
Circuit City's demise.
• Amazon Quickly taking market share.
• Lots of overhead cost.
• Best Buy is a showroom for many
online retailers.
• Facebook and Review sites plagued
with complaints about customer
service.
12. The New Strategy
• Connect to consumers on a local basis.
• Hire employees for handling Social Media
in store.
• Use Pinterest and Instagram tp further
social media presence.
• Make an Ipad and Tablet specific app.
13. The New Strategy in Store
• Give employees Ipads that can
access inventory, prices, product
information , and POS use.
• Implement Aurusma for the
customer that wants to shop on
their own. Products can be
purchased with the app.
14. Cost For Implementation
• Social Media employee: 100 pilot
stores 1 employee per store
$30,000x100=$3,000,000
• Instagram & Pinterest would be ran
by Best Buys Social Media Team at
the corporate offices.
• In store Ipad use:100 pilot stores
with 10 Ipads each
$399.99x10x100=$399,990
• Ipad and Tablet App
$12,000-$150,000
15. SWOT Analysis
New Strategy SWOT Analysis
Strengths: Weakness:
• Wide product selection in consumer • It takes lots of time and money to
electronics implement strategies.
• Making a big company feel small • Still have more overhead then online
retailers.
• Well-developed digital and social
• Opens more outlets for consumers to
• Social Marketing to Women complain.
• High customer service ratings • Social media is constantly changing
• Strong relationship building
Opportunities: Threats:
• Further integration of new social media • Amazon’s lower prices online
• Make stores smaller, lessen overhead. More • Consumers could use all the info provided to
Best Buy Mobile stores. still shop elsewhere.
• Be more aggressive with pricing • Larger department stores such as Walmart
• Price driven consumers
18. References
Best Buy. (2012). About Us. BBY.com. Retrieved June 29, 2012, from
<http://pr.bby.com/phoenix.zhtml?c=244152&p=irol-factSheet>
Bickle, M. (2010). Best Buy is the Best Bet. Forbes. Retrieved June 29, 2012, from
<http://www.forbes.com/sites/prospernow/2010/10/25/best-buy-is-the-best-bet-2/>
Downes, L. (2012). Why Best Buy is Going Out of Business…Gradually. Forbes. Retrieved June 29, 2012,
from <http://www.forbes.com/sites/larrydownes/2012/01/02/why-best-buy-is-going-out-of-
business-gradually/2/>
Nagy, B. (2012). Best Buy’s New Store Strategy. Word Press. Retrieved June 29, 2012, from
<http://bryannagy.wordpress.com/2012/04/01/best-buys-new-store-strategy/>
Souers, M. (2007). Why Best Buy is a Best Bet Business Week. Business Week. Retrieved June 29, 2012,
from <http://www.businessweek.com/stories/2007-04-23/why-best-buy-is-a-best-
betbusinessweek-business-news-stock-market-and-financial-advice>
Stetler, M. (2011). How Much Does it Cost to Develop a Mobile App. AppMuse. Retrieved June 29, 2012,
from <http://appmuse.com/appmusing/how-much-does-it-cost-to-develop-a-mobile-app/>
The New York Times. (2010). Best BUY Company. The New York Times. Retrieved June 29, 2012, from
<http://topics.nytimes.com/top/news/business/companies/best_buy_company/index.html>
