Best Buy Company Essay

PAGES
3
WORDS
781
Cite

Best Buy is a retailer of consumer electronics, operating with a multichannel platform in North America and China (Best Buy, 2013). In the fiscal year 2013, Best Buy lose $441 million on revenues of $45.1 billion. In the previous year, the company lost $1.4 billion on revenues of $46 billion and suffered a loss in FY2011 as well (2013 Best Buy Form 10KT). Best Buy operates retail stores and an online store. The company has a large geographic scope covering all of the U.S., Caanda and Mexico, and the company has some store sin China as well. Best Buy's industry is highly ompetitive. There are many firms competing for this business. Offline, there is Costco, Game Stop and Wal-Mart among others. Online, most of these retailers have a presence, and there is also Amazon. In addition, many manufacturers have their own online retail operations. In addition to intense competition, the industry is characterized by relatively poor bargaining power for industry players. The mutlitide of available retail channels makes for a high level of competition, and consuersm tend to be attracted primarily by price. Service and convenience are other contributing factors to the purchase decision. Best Buy responds to this by attempting to use its bargaining power to secure...

...

Nevertheless, there is no real source of sustainable competitive advantage for Best Buy, other than the strength of its brand. Other firms against which it competes also have strong brands.
The industry is challenged at present. The intensity of competition is combined with reltaivley slow growth. Demand in the consumer electronics industry is driven primarily by new product launches. In particular, revolutionary products spur new demand as consumers find new uses for technology. While there is a short cycle for new product innovations, this is required to sustain demand. The lack of major hit products can harm retialers in the industry because sales growth depends on more than just replacemtn purchases. As the result of intensive competition, advertising spending has been increasing rapidly in the industry and is expected to do so in the foreseeable future, with further developments being in online advertising (eMarketer, 2013). The confluence of slowing sales and increasing advertising revenues, along with high development costs and increasing commodification of key products has resulted in many firms in the…

Sources Used in Documents:

References

Best Buy (2013). Investor relations -- overview. Best Buy. Retrieved November 17, 2013 from http://phx.corporate-ir.net/phoenix.zhtml?c=83192&p=irol-irhome

2013 Best Buy Form 10-KT. Retrieved November 17, 2013 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTc3NjA1fENoaWxkSUQ9LTF8VHlwZT0z&t=1

eMarketer. (2013). Computing products and consumer electronics industry turns to mobile, social and video. eMarketer.com. Retrieved November 17, 2013 from http://www.emarketer.com/Article/Computing-Products-Consumer-Electronics-Industry-Turns-Mobile-Social-Video/1010373

Business Korea. (2013). Global electronics industry. Business Korea. Retrieved November 17, 2013 from http://www.businesskorea.co.kr/article/2197/global-electronics-industry-%E2%80%9C56-electronics-companies-besides-samsung-apple-are-serious
Reuters. (2012). Best Buy tumbles on continued decline in same-store sales. Chicago Tribune. Retrieved November 17, 2013 from http://articles.chicagotribune.com/2012-11-20/business/chi-best-buy-tumbles-on-continued-decline-in-samestore-sales-20121120_1_electronics-retailer-holiday-quarter-online-retailers


Cite this Document:

"Best Buy Company" (2013, November 17) Retrieved April 23, 2024, from
https://www.paperdue.com/essay/best-buy-company-127395

"Best Buy Company" 17 November 2013. Web.23 April. 2024. <
https://www.paperdue.com/essay/best-buy-company-127395>

"Best Buy Company", 17 November 2013, Accessed.23 April. 2024,
https://www.paperdue.com/essay/best-buy-company-127395

Related Documents

BEST BUY CO. INC. STRATEGIC ANALYSIS Strategic Analysis of Best Buy Current situation A- Current performance B- Strategic posture Corporate Governance A- Board of directors B- Top management External Environment: Opportunities and threats A- Natural physical environment B- Societal Environment C- Task Environment D- Summary of external environment Internal Environment: Strengths and Weakness A- Corporate Structure B- Corporate Culture C- Corporate resources D- Summary of internal environment Analysis of Strategic Factors (SWOT) A- Situational Analysis Strategic Alternatives and Recommended Strategy A- Strategic Alternatives Recommended Strategy Implementation Evaluations and control Part II Functional and Business strategies of

Best Buy the Company That
PAGES 5 WORDS 1363

Part II. The company is traded on the New York Stock Exchange, under the symbol BBY. Best Buy had its initial public offering (IPO) on Nasdaq in 1985 but migrated to the NYSE in 1987. A chart of the company's stock over the past four weeks is as follows: Source: Yahoo! Finance (2013) Short-term movements in share price are mostly relevant to day traders. Most investors hold the stock much more than

Best Buy began its operations in 1966 by founder Richard M. Shulze. The company started its operations by a single radio shop called "The Sound of Music." By 1970, Sound of music was already successful and earning annual revenues exceeding one million dollars. The company was selling asa radio and Hi-Fi stereo and maintained a good status, until 1981 when a tornado hit one of the original stores. Tornodo damages

Best Buy Strategy Best Buy Current Strategy Best Buy Co. Inc. is a global retailer that produces technology and entertainment products and services across the globe. The company incorporated in 1966 in the state of Minnesota and today it is operating in U.S., Europe, Canada, China and Mexico. Best Buy controls a collection of retail stores and websites under eleven brand names. Target Market Best Buy mostly targets the individual consumers, which Best Buy

Best Buy Is an American
PAGES 6 WORDS 1512

There is little reason to believe that the upside is going to be sufficiently high to place a "buy" rating on the stock. Returns are likely to be either in line or below what the beta implies unless Best Buy is able to find new ways to grow. More likely, it will be subject to increased competition from its major competitors and will be forced to cut margins further in

Best Buy Inc. Stock Evaluation Analysis Best Buy is the largest specialty retailer of consumer electronics in the U.S., selling a variety of brands of electronic devices such as TVs, home theater systems, cameras, appliances, computers, mobile phones, video games, software, and repair & installation services to consumers across the country under different store brands (Trefis, 2014). The company has over eleven hundred brick and mortar stores in the U.S. And also