The company follows a differentiation strategy because all of the products they sale are similar, if not the same from their rivals. The products on the shelves are the commodity and price is the primary basis of competition. Price wars between competitors are one reason that Best Buy is in the position that it’s in. Buyer’s price sensitivity determines if the customers will buy from you or simply go to a rival company due to the price of the product. Just as I thought they would when I began to do more research Best Buy had established a new company transformation strategy called Renew Blue. This was implemented in 2012 when the new CEO Hubert Jolly began his career at Best Buy.
Renew Blue Transformation In November 2012, Best Buy’s organization sat down to try to diagnose there main two issues; declining store sales and shrinking profit margins. Best Buy decided the best way to move forward was to incorporate corporate diversification. This strategies main objective is to promote growth in the …show more content…
Best Buy is in the process of building strong relationships with key suppliers to lessen the impact of intensified competition from suppliers’ retail stores. (Exhibit 5) Soon after the beginning of the Renew Blue transformation Best Buy partnered with two of its top vendors, Samsung and Windows to incorporate the “store-within-a-store” arrangement.
In April 2013, Best Buy and Samsung entered into a deal to launch the Samsung Experience Shop in more than 1,400 Best Buy and Best Buy Mobile stores across the US. The store-within-a-store concept helps a supplier like Samsung gain additional visibility and allows the suppliers a chance to interact directly with customers from highly trained Samsung sales consultants while also giving Samsung a chance to directly compete with their main competitor Apple. (Bailey, Best Buy joins forces with key suppliers,
Renew Blue Transformation In November 2012, Best Buy’s organization sat down to try to diagnose there main two issues; declining store sales and shrinking profit margins. Best Buy decided the best way to move forward was to incorporate corporate diversification. This strategies main objective is to promote growth in the …show more content…
Best Buy is in the process of building strong relationships with key suppliers to lessen the impact of intensified competition from suppliers’ retail stores. (Exhibit 5) Soon after the beginning of the Renew Blue transformation Best Buy partnered with two of its top vendors, Samsung and Windows to incorporate the “store-within-a-store” arrangement.
In April 2013, Best Buy and Samsung entered into a deal to launch the Samsung Experience Shop in more than 1,400 Best Buy and Best Buy Mobile stores across the US. The store-within-a-store concept helps a supplier like Samsung gain additional visibility and allows the suppliers a chance to interact directly with customers from highly trained Samsung sales consultants while also giving Samsung a chance to directly compete with their main competitor Apple. (Bailey, Best Buy joins forces with key suppliers,