SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis.
Case 20 - Best Buy, Inc.
Strengths
1. Size - There are around 1,400 stores and they generate 80% of consumer electronics revenue from physical stores alone. (5 Strengths, 2012).
2. Global Powerhouse - Best Buy sells more televisions, computers, and tablets than any other retailer in the world. Best Buy is currently the top U.S. seller of tablets. (5 Strengths, 2012).
3. Geek Squad and Best Buy Mobile - Geek Squad has technicians that work on computers and other items such as installing radios in cars and generates more than 1 billion dollars annually.
(5 Strengths, 2012).
4. Current partnership with Samsung. In 2013, Best Buy and Samsung began a partnership to push Samsung …show more content…
Pricing errors and environmental concerns around 2007 caused decline in consumer confidence and the company's overall image. (Company has since fixed issues and has a recycling program to help decrease environmental issues.)
3. Dependent on third party vendors/manufacturers such as Samsung, Apple, etc.
4. Several product recalls in the past. Company is dependent on 3rd party retailers and this makes it harder to ensure quality of products sold in their stores.
Opportunities
1. Grow Chinese retail market to help increase sales/profitability.
2. Change stores from large retail scale facilities into smaller mobile device stores.
3. Increase marketing and online sales. Price matching guarantee - find a way to apply this to online items as well. People are tending to purchase more items online especially electronics and price matching online would help increase sales. With the free ship to store option this would help increase online sales plus get the consumer in the store and that may lead to other purchases.
4. Expand their exclusive products and services - Geek Squad, Insignia, Dynex, etc.
(Best Buy, 2014).
Threats
1. Competition. Every business is always going to have threats from competitors offering the same or similar
Case 20 - Best Buy, Inc.
Strengths
1. Size - There are around 1,400 stores and they generate 80% of consumer electronics revenue from physical stores alone. (5 Strengths, 2012).
2. Global Powerhouse - Best Buy sells more televisions, computers, and tablets than any other retailer in the world. Best Buy is currently the top U.S. seller of tablets. (5 Strengths, 2012).
3. Geek Squad and Best Buy Mobile - Geek Squad has technicians that work on computers and other items such as installing radios in cars and generates more than 1 billion dollars annually.
(5 Strengths, 2012).
4. Current partnership with Samsung. In 2013, Best Buy and Samsung began a partnership to push Samsung …show more content…
Pricing errors and environmental concerns around 2007 caused decline in consumer confidence and the company's overall image. (Company has since fixed issues and has a recycling program to help decrease environmental issues.)
3. Dependent on third party vendors/manufacturers such as Samsung, Apple, etc.
4. Several product recalls in the past. Company is dependent on 3rd party retailers and this makes it harder to ensure quality of products sold in their stores.
Opportunities
1. Grow Chinese retail market to help increase sales/profitability.
2. Change stores from large retail scale facilities into smaller mobile device stores.
3. Increase marketing and online sales. Price matching guarantee - find a way to apply this to online items as well. People are tending to purchase more items online especially electronics and price matching online would help increase sales. With the free ship to store option this would help increase online sales plus get the consumer in the store and that may lead to other purchases.
4. Expand their exclusive products and services - Geek Squad, Insignia, Dynex, etc.
(Best Buy, 2014).
Threats
1. Competition. Every business is always going to have threats from competitors offering the same or similar