Best Buy is a global leader in consumer electronics and appliances. It has approximately 4000 locations, and well over 1000,000 employees. Even though they share in the electronic retail industry, the company has slowing been declining. They are competing with many online stores who offers lower prices, and may need to re-position their strategy. Best Buy is attempting to focus on cost leadership as a competitive advantage. The issue is that customers often use they physical store to browse, try products, and get questions answered. Then they make purchases online for a lower price, from Amazon or on other competitor’s web sites. This performance is called “showrooming” and is adding Best Buy’s costs, which does not convert into
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Best Buy invests a lot of money to train their employees. Consumers know when they visit a Best Buy location, they will be educated on the products that they are interested in buying. Best Buy has a reputation for excellent customer service and advice. This strategy is key because this is how customer relationships are formed. During that visit consumers build trust and confidence in the store and in the employees. This attention to detail is how Best Buy gets their repeated customers and referrals for new, potential sales. Their focus is being a learning organization, customer-centric, retailer of choice, and employer of choice. Their efforts are to make the lives of the employees and customers stress-free. This extensive training is one of Best Buy’s cost …show more content…
If they are stocking items that are unprofitable and not moving off the shelves, they need to consider discontinuing those items. They need to focus on looking for the lowest-cost providers, which could reduce costs by 20-30%. With the focus on online purchasing, Best Buy should review their overhead costs and consider reducing their head count. Many of the electronic companies are facing competition with other companies. To reduce expenses and cut out the competitors, they should consider a partnership with
Best Buy invests a lot of money to train their employees. Consumers know when they visit a Best Buy location, they will be educated on the products that they are interested in buying. Best Buy has a reputation for excellent customer service and advice. This strategy is key because this is how customer relationships are formed. During that visit consumers build trust and confidence in the store and in the employees. This attention to detail is how Best Buy gets their repeated customers and referrals for new, potential sales. Their focus is being a learning organization, customer-centric, retailer of choice, and employer of choice. Their efforts are to make the lives of the employees and customers stress-free. This extensive training is one of Best Buy’s cost …show more content…
If they are stocking items that are unprofitable and not moving off the shelves, they need to consider discontinuing those items. They need to focus on looking for the lowest-cost providers, which could reduce costs by 20-30%. With the focus on online purchasing, Best Buy should review their overhead costs and consider reducing their head count. Many of the electronic companies are facing competition with other companies. To reduce expenses and cut out the competitors, they should consider a partnership with