Best Buy Co. Inc.

Best Buy was originally called Sound of Music, founded by James Wheeler and Richard Schulze. With ambitions to capture larger market share, Sound of Music changed its name to Best Buy Co., Inc., in 1983. Shortly thereafter, it adopted its now-familiar superstore format, with an increasingly diversified product range. Boosted by an infusion of cash from a series of public offerings, Best Buy proceeded to grow from 6 to 24 stores and saw its revenues increase from $29 million to $290 million from 1984 to 1987. Best Buy changed its logo to the yellow tag in 1987, and in 1989 its stores adopted a new “grab-and-go” store format called Concept II. The new stores consisted of well-stocked showrooms with self-help information so that people could make …show more content…
The Wall Street was not satisfied, and the company’s stock price continued its precipitous decline. From 2005 to 2007, the industry compound annual growth rate (CAGR) was approximately 6 percent. With the onset of the global recession, growth fell to 3.4 percent in 2008 and 0.4 percent in 2009. The industry started to recover in 2010, but growth remained relatively flat for the next several years. Globally, the market is even more divided, with Best Buy controlling just 3.2 percent of the worldwide market in consumer electronics (post-recession). Its major competitors include Apple (11.3 percent), Walmart (6.2 percent), and Metro AG (5.6 percent), with “other” stores accounting for the remaining 73.7 percent. With respect to online sales, Amazon dominates the U.S. consumer-electronics market with a 60 percent share, followed by Walmart at 22 percent, and Best Buy at 14 percent. Amazon’s lead in share of sales is somewhat smaller at 39 percent, compared to 33 percent for Walmart, 23 percent for Best Buy and 4 percent for Target. Joly’s “Renew Blue” turnaround strategy was built around five pillars directed toward Best Buy’s five main stakeholder groups: customers, employees, supply-chain