Best Buy Case Study

Great Essays
Register to read the introduction… Overall profits have to be looked at deep within the financial statement of any company, but the bottom line always remains the bottom line. Within Best Buy, we see that the company's total liabilities are 60% of total assets. Liabilities have increased from March 2003 at 177,000 to February 2004 at 765,000(Quotes & Info- Best Buy Co Inc (BBY)). This puts their liabilities at a high risk for investors. Their top competitor, Circuit City, holds only 30% liabilities to assets. This creates a big challenge for Best Buy Co., Inc. to overcome. As the financial forecasts decline in profit and shares tend to drop, investors will look for new investments. Some believe that one of the major causes for reduced profits is that expansion and remodels that are currently underway. These remodels, which are designed to target specific consumer groups, are eating profit faster than it is being made. Several analysts believe that this expansion program is causing great risk for Best Buy Co., …show more content…
It is not a store strictly for teenagers, or one strictly for adults; it welcomes all. However, one major age group is being overlooked—children. Best Buy should include a section of their store dedicated to children's electronics. This section would be selling the newest video games, mini televisions, child sized computers and radios. Like everything else in the Best Buy store, these devices and electronics would be out on display for the children and adults to look at; the only exception is that they would be placed at a child's height for viewing. These days, it is not uncommon for elementary school children to have their own computers and cell phones. Therefore, overlooking such a key demographic seems almost ridiculous. Best Buy could collaborate with local theme parks to be used a special promotional offers. For example, for every major purchase over two hundred dollars purchased from the children's section, the customer would receive a free children's ticket to an amusement park of their choice. This is a win-win situation for the theme park, Best Buy, and the consumer. Children would not be going to theme parks alone; therefore, the theme park would still be gaining the admission of the adults taking the child, not to mention the food and souvenirs purchased. More products would be sold in Best Buy, and the customer would once again, feel like they are getting more for their

Related Documents

  • Great Essays

    The remaining 80% of the customers are actually unprofitable and can result in a loss of 200% of the profits. They were able to then formulate strategies specifically to turn the unprofitable customers into profitable ones. If our CPA returns such results, it could give us key information as to which customers were the culprits of our recent unsatisfactory…

    • 1114 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    The Best Online Toy Store We all need to pick the best toys for our children and there are a lot of spots to purchase toys both disconnected from the net and online yet how would you pick the best online toy store? As a matter of first importance, the best online toy store will have an awesome determination of toys for all age bunches and both young ladies and young men. It ought to provide food for children, babies, pre-schoolers and upwards. There ought to be a choice of brand toys accessible, for example, Toy Story, Disney and Star Wars and more conventional toys like train sets and dolls. Notwithstanding the real toys, the best online toy store will offer embellishments like transformers and tables which can be utilized for train designs…

    • 969 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Swot Analysis Of Excalibur

    • 1424 Words
    • 6 Pages

    )An indoor playground might be an answer to these problems which provide best of both worlds - parents can see their kids getting part of activities that would bolster their health and social skills and kids get their entertainment plus chance to meet new people and make new friends and improving their social life. The target market of an indoor playground is huge - all the teenagers and toddlers of the city. There is a huge opportunity for profit and growth if such a business venture is planned and executed properly. Since indoor playground can be the answer to so many parents' headache that their kids are not socializing or are being stuck in their homes playing PlayStation or chatting on Facebook, the potential of growth can be immense. The advertising of the company would be done through television and social media - two of the most important technology that kids spend most of their time on.…

    • 1424 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store. If you have a question about a product good luck trying to hunt someone down to assist you with your inqucdtrt;qwerkqwe’r233343240234l’iry. Often times you will feel as if you are the only one in the store. This is due to the fact that TheStore has trimmed the company employees down below an acceptable level for conducting normal business operations. The lack of employees has produced an initial increase in monetary savings but the prolonged effects of not having adequate employees will yield a large decrease in the revenues over an extended period Fd gqert q4tq gqert notice a lack of employees manning the store.…

    • 52230 Words
    • 209 Pages
    Improved Essays
  • Improved Essays

    With that being said, the child needs to be at least two. David Hill states, “Educational TV makes the biggest difference for children whose homes are the least intellectually stimulating.” So, educational programs can be helpful if some children aren’t being taught basic skills. Regardless of content, children should not watch more than an hour of television each day. I watched TV before the age of two and I seem to be all right. Parents who don’t mind their children watching TV need to be sure that the programs are appropriate and educational.…

    • 760 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    SWOT Analysis: Gamestop

    • 2103 Words
    • 8 Pages

    This card is amazing and has given a lot business to the company. Many consumers can purchase things without having a credit card. GameStop had recognized a way for their consumers that are young to purchase their games. GameStop has made over 60% of their sales due to this card. The card also allows GameStop to figure out what their consumers are buying.…

    • 2103 Words
    • 8 Pages
    Improved Essays
  • Superior Essays

    One-click shopping is the norm in their lives, however it not only what the Tweens spend themselves but also what relatives such as parents and grandparents spend on them. Per Euromonitor International with more women working plus a smaller number of children per household means more money is spent on each child. They are children who are no longer little children but not yet teenagers. Less is spent on ‘childish’ toys and more on things that are considered ‘grown up’. According to an Marketing Sherpa article Tweens spend 82% of their money on entertainment, video games, music, movies, books and videos/DVDs, both digital and hardcopy.…

    • 1193 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Capitalist Economy

    • 1128 Words
    • 5 Pages

    While these numbers would sound fantastic to the average seller, they spell doom for the average worker. In 2014, the average worker to CEO hourly pay ratio was 373:1 (“Executive PayWatch”). An average worker at Walmart in the year 2014 brought home only $36,184 while a worker on federal minimum wage made only a measly $15,080 (“Executive Paywatch”). In addition, since 1970, productivity at Walmart stores has risen an astounding 319%, but the hourly compensation has only risen 20.34% (“Executive Paywatch”). The top 1%’s share of the wealth has grown nearly 111% since 1990, while the share of wealth for the bottom 99% has only increased an atrocious 4.3% (“Executive Paywatch”).…

    • 1128 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Swot Analysis Of Panera

    • 2226 Words
    • 9 Pages

    Panera`s relies on repeat business, which can grow as a major weakness once the need for marketing and advertising increases when the market share loses (due to an increased competition and reduction of their market share). Compared to other food chains like TinTrum or Chipotle, Panera is more expensive, and their average meal price is $8.50. Resignation of Ronald Shaich will leave Panera with a loss of resource with lot of experience and expertise. For Panera to continue to rise, the company’s new CEO, William Moreton, would need to continue to feed and maintain Panera’s “starter.” From a financial…

    • 2226 Words
    • 9 Pages
    Great Essays
  • Superior Essays

    This project needs slight modification as per the customer needs and based on their products. Normally kids have several tastes in toys, so kid school, theaters, play school are the customers for the innovative product i.e. 3D manufacturing machine i.e. selective laser sintering machine(Rosenberg and Czepiel, 1984). In addition youngsters needs different computer games, so shopping Malls, etc., are want to buy the games producer software device The size of the market depends on the country, in which the retail market they own.…

    • 1050 Words
    • 5 Pages
    Superior Essays

Related Topics