milliyet internet sayfası yorumcuları

Best Buy: Big Box Fights Back

Founded in 1966, BB is a retail consumer electronics business that owns 1150 big box and over100 express stores around the globe. Its holdings include Cinema Now, Geek Squad, Magnolia Audio Video, Mind Shift and Pacific Sales. Best Buy sports a large array of brands as shown in figure 1. Best Buy’s competitors include Amazon, Wal-Mart, Radio Shack and the world of onlineretailers.As of this writing, sales are flat around 50 Billion dollars and its growth is declining from an average CAGR of 7%. Its earnings per share have declined by more than 200% in the last year. Additional performance data is shown in the appendix). In 2012, Best Buy pulled out of the UK, removed the founder and chairman of the board closed many stores, reshuffled management and is trying to deal with its own governance issues. In addition, BB is facing a significant market paradigm shift towards online e-commerce, mobility, cloud computing, internet taxation, music and video streaming. In section 2 we discuss the value streams, followed by a SWOT, a TOWS and we finally propose several strategies to address Best Buy’s stagnation issues.

BB needs to rethink its strategy for new markets and cultivate plans to integrate cultural and economic factors by developing specific entry strategies for emerging markets that have a growing discretionary income and a desire for electronic status symbols. This should be done by leveraging a concentric diversification strategy fix and understanding how other cultures use retail and mobile technology differently than North Americans (i.e. mobile payments, money transfer, pay as you go, etc.) BB may face state owned or supported monopolies in mobile technologies. Thus, it must explore cooperation with state capitalism drivers as a market penetration tactic. In an effort to capture early adopters and be perceived as “progressive “company, they should seek exposure to a captive social media community of people in public relations, journalism, advertising, music and film who can champion BB’s
Brand and create opportunities to expand the enterprise’s Affiliate marketing channel reach. This will differentiate BB from Wal-Mart, Apple, Amazon and others. BB must also ideate innovative strategic alliances and partnerships with other companies and organizations that align with the brand

Leverage Best Buy’s existing resources to pursue opportunities in cloud computing, virtual sales and affiliate marketing. Best Buy has a strong internet presence, an extensive cyber infrastructure and brand image. The company will use its existing infrastructure and idle network and computer time to service a big need of small to medium businesses (SMB): selling their goods and services online world wide and delivering managed services around produced solutions. The target market includes software companies, game developers, and small music and movie producers.

BB will be a virtual processor, a technology provider and a fulfillment partner that leverage its own infrastructure to offer e-commerce, automatic payments and online distribution forth SMB companies who are not in a position to sell directly to the same customer segment targeted already by BB. This will enable BB to increase the utilization efficiency of its existing infrastructure and expand its sales of the high margin service worldwide.

Best buy has to change how it sold things and how they should sell it now lots of teens are interested in smart phones, best buy has to focus on trying to sell smart phones and lots of people are interested in tablets. In this case smart phones would be the worst thing that ever happened to best buy, because customers can compare prices online and in store Amazon sells more people goes to best buy look at the thing they want to buy then go buy it at a cheaper price in Amazon.