Best Buy Case Study

4052 Words 17 Pages
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

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