Essay Best Buy

1208 Words Apr 30th, 2015 5 Pages
3. Identify the prominent features of the company’s current business and functional strategies, and consider attack strategy from competitor. What would be Best buy strategy to retaliate?

In the traditional retail sector, Best Buy has previously largely squeezed other electronics warehouse-superstores out of the business (or left them as a shell of their former self), with the exception of some regional retailers such as HH Gregg, or Fry’s Electronics. In addition to competing with these smaller chains, Best Buy continues to compete in the consumer electronics retail sector with companies such as Staples and Office Depot, which offer a small selection (compared to Best Buy) of competitively priced electronics and accessories. Other
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As a response, Amazon has initiated an effort to expand its physical footprint by placing new distribution centers near key markets (where in the past, a physical presence would have triggered a need for consumers to pay sales taxes). This push is part of an effort to close one of the biggest gaps between Amazon and brick and mortar retailers: the lag time between purchase and when a customer holds an item. Amazon has already rolled out same delivery for its most popular items in 10 US cities, and expects to expand this program as rapidly as possible, wherever it is financially tenable. These moves are likely to greatly enhance Amazon’s ability to lure customers away from its traditional brick and mortar competitors

4. Weigh the challenges confronting the company. What are the greatest risks for Best Buy as it moves into the new era of connectivity? What recommendations can be made to support the company’s growth and profitability objectives?

Best Buy is struggling to address the strategic risk. Retail is highly personal. Risk managers in the retail industry should, and many do, pay close attention to reputational risk issues. Negative word of service and supply chain problems spread quickly and broadly in our social media-enabled world.

For Best Buy growth and profitability objectives, Our group suggested to Best Buy to do 3 things below :

First,

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