Essay about Best Buy's Problems

1647 Words May 30th, 2013 7 Pages
Best Buy Co. Inc

1. After Anderson took over Best Buy in 2002, he pursued four pivotal strategic initiatives, what prompted him to do so – his rationale?

After Brad Anderson became the CEO of Best Buy in 2002 his team of executives came up with and emphasized four main central strategic initiatives, which are customer-centricity, promoting an efficient enterprise, win with providing the best service, and win in entertainment. As we all know, customer-centricity being by far the most important initiative. One major reason that prompted Brad Anderson and Best Buy to come up with these strategic initiatives was the main threat of imitation by competitors for example the emergence of Wal-Mart, Target as mass merchandisers/wholesalers
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Customer relationships can also be leveraged to create customer loyalty fostering long-term relationships with the client. For the sake of brevity I would like to briefly mention the last important element in Best Buy’s customer centric ideology/strategy, which is the empowering element. This calls for empowering sales staff to make wholesome, informed merchandizing decisions. With a proper training and development programs, employees can use their knowledge about customer behavior, form hypotheses and test it out in a real world setting to see what works. After they can discuss about the results and if something yields favorable results (promoting and meeting a variety of needs with more choices for customers), new ideas can be implemented to promote and attain the perfect customer experience and customer satisfaction. By empowering its employees new and worthy ideas can be attained. The ever-comprehensive Best-Buy reporting system and its “chalk-talks” are also vital in obtaining important information (customer centric vs. non-centric stores) and trends as well as teaching its employees good business practices.

3. How would you recommend Brad Anderson for further actions?

I believe that Best Buy’s problem lies in its function of a flawed business model, which in turn led to a function of poor execution. The poor model being where the merchant organization, segment/domain leaders, and GMs were forced to coexist and work wholly together as a business

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