These advantages have helped to cultivate a considerable brand affinity for Amazon among consumers. Additionally, Amazon has carved into the markets for media that big box stores like Best Buy have depended upon for revenue — Amazon offers a large catalog of digital music, as well as an ever-expanded catalog of movies and television shows that can be streamed , rented, or purchased at low price points. As a response, Amazon has initiated an effort to expand its physical footprint by placing new distribution centers near key markets where in the past, a physical presence would have triggered a need for consumers to pay sales taxes.
This push is part of an effort to close one of the biggest gaps between Amazon and brick and mortar retailers: Amazon has already rolled out same delivery for its most popular items in 10 US cities, and expects to expand this program as rapidly as possible, wherever it is financially tenable.
Though a sales force of some sort needs to be maintained, it needs to consist of solely top-performers from the existing sales force.
These measures should only be implemented in a way that is comparatively less expensive than employing the workforce that they are intended to compensate for. While scaling back traditional retail operations, Best Buy needs to aggressively expand its online sales operations. If the company is going to survive the competitive onslaught wrought by online retailer competitors, Best Buy must expand its online sales offerings, focus on improving warehouse and shipping logistics efficiency, and reduce its markup on items sold online.
First, consumers should be directed to kiosks throughout the store to carry out an online purchase after examining an item on the showroom floor. Alternatively, a Best Buy mobile device app could allow consumers to scan a QR code, then purchase the item without utilizing a kiosk.
Second, the stores should avoid alienating customers that intend to make impulse purchases by maintaining a limited inventory of items on-hand. These items would be priced somewhat higher than online items, in order to reflect the additional overhead costs associated with maintaining an in-store inventory. In order to lower overhead costs and compete with online retailers, Best Buy needs to massively reduce the sprawling size of their stores, which will enable savings on rent.
This can be achieved by centralizing inventory warehousing to distribution centers that handle both shipping of online orders, as well as delivery of product inventory to stores. Distribution centers should be established in low-rent locations that enable expedient delivery of products to store locations.
This will allow Best Buy to consolidate the size of their existing retail operations by drastically reducing the number of items that are kept in-stock at any given point in time. Additionally, this should allow the company to reduce the number of employees necessary to handle issues such as back-of-house warehousing, and stocking of store shelves. Retrieved October 24, , from BestBuy. Profits plunge at troubled Best Buy.
The Daily Telegraph London. Best Buy reassigns many staff to sales; Move an attempt to revive slumping profits. Retrieved October 24, , from FundingUniverse. Schulze begins due diligence on Best Buy; Teams with private-equity players: Adaption is Key for Best Buy. Retrieved October 24, , from Chicago Sun Times: As internet marketing grabs bigger share of sales, bricks-and-mortar stores turning into showrooms. Ultius Blog, 25 Jun. Click here for more help with MLA citations. Case Study on Best Buy Co..
Click here for more help with APA citations. The company should also bring some changes in their business to stay in the top line. Like, they should also offer their products online as other companies are doing.
Consumers then have an option of having the product shipped to their home or picking it up at a local Best Buy store. The internal forces include Marketing and Management of the company. The company is spending a greater amount on the marketing expanses of the company. They spend millions of dollars on their website to provide people with all the information about their business and description about each and every product they are dealing with.
Mostly they do business-to-business marketing for their business. They also mailed thousands of copies to their target market, with the catalog attached to it. With the changing trend, the company is also planning to open inbound as well as outbound call center. The catalog will sell computers, cables, and accessories as well as a smattering of consumer electronics.
To help in its efforts in bagging big businesses, Best Buy is setting up a call center for inbound and outbound calls. SWOT analysis will help to examine the condition of the company from internal as well as external.
The company is enjoying the leadership in the market because of its highest share. Because of its large operation, the company is able to capture the market and supply the products on spirited prices. Leveraging its large scale of operations, the company has been able to increase its bargaining power with consumer electronics vendors and offer more competitive prices.
The company is capable of performing strong operations during last few years. It revenues increase by This figure is much more then the average rate in the same fiscal year. The company has shown that the company is efficient enough to capture the large share of the market.
Strong operating performance implies that not only was the company able to increase its market share but also its operational efficiency. It is the biggest weakness for the company. The company should not rely on one product. If the product is hotcake today, it can be outdated tomorrow. Then it will harm the company as well as its revenues. The emerging trend of electronic items in the market is an opportunity for the Best Buy Company to accelerate their profits by offering them.
Best Buy Company has an opportunity to expand their business globally. As electronic items have a big consumer market, so there is also a chance of gaining more profits inside the other countries.
Recently Best buy company opened there outlet in China. And it attracted a large number of buyers. Electronic items are mostly luxurious items. And high income is depended on good economy. If the income of a person falls then he will definitely go for the basic items not for these secondary items. So at this point the company can lose the profits.
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SWOT analysis will help to examine the condition of the company from internal as well as external. The revenue which is continuously generating by the Best buy’s are only from one sector i.e. from flat panel TV’s. It is the biggest weakness for the company. research paper, thesis or term paper on Business or Economics – feel free.
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