SWOT Analysis The various exhibits for the SWOT analysis are highlighted in the appendix below. The documents included are the SWOT analysis, Internal Factor Evaluation Matrix, External Factor Evaluation Matrix, and SWOT Bivariate Strategy Matrix. BCG Matrix
It is clear that three things are needed to create a BCG matrix for Best Buy, Inc. First, we must determine how that company divides itself into different divisions or units. Based on the company’s 2012 annual report, the year relevant for this analysis, Best Buy divides itself into domestic and internal business units (Best Buy Co., Inc., 2012). In 2012, Best Buy’s domestic operations brought in $37.6 billion in revenues, representing 22% of the market for consumer electronics (Rosenberg, …show more content…
The threat of entry, power of suppliers, and threat of substitutes are all low within this industry. The power of buyers is marginally high since they have the power to command increasingly reduced prices and increased value. Lastly, rivalry among competitors is high within the …show more content…
With over twenty-two percent of the consumer electronics market in American the company has been successful in gaining consumer domestically, but has largely failed to penetrate other markets successfully (Rosenberg, 2013; Best Buy Co., Inc., 2012). The company also has largely failed to gain any sizable amount of customer loyalty, becoming an experience based store for customers who seek to try a product before they purchase it from an online source (Goodfellow, 2013; Downes, 2012). This Competitive Profile Matrix shows that Best Buy has many changes that it needs to implement in an effort to be more competitive against two of its largest competitors, Walmart and
It is clear that three things are needed to create a BCG matrix for Best Buy, Inc. First, we must determine how that company divides itself into different divisions or units. Based on the company’s 2012 annual report, the year relevant for this analysis, Best Buy divides itself into domestic and internal business units (Best Buy Co., Inc., 2012). In 2012, Best Buy’s domestic operations brought in $37.6 billion in revenues, representing 22% of the market for consumer electronics (Rosenberg, …show more content…
The threat of entry, power of suppliers, and threat of substitutes are all low within this industry. The power of buyers is marginally high since they have the power to command increasingly reduced prices and increased value. Lastly, rivalry among competitors is high within the …show more content…
With over twenty-two percent of the consumer electronics market in American the company has been successful in gaining consumer domestically, but has largely failed to penetrate other markets successfully (Rosenberg, 2013; Best Buy Co., Inc., 2012). The company also has largely failed to gain any sizable amount of customer loyalty, becoming an experience based store for customers who seek to try a product before they purchase it from an online source (Goodfellow, 2013; Downes, 2012). This Competitive Profile Matrix shows that Best Buy has many changes that it needs to implement in an effort to be more competitive against two of its largest competitors, Walmart and