Best Buy Case Analysis - 4374 Words

I. MissionBest Buy has been changing their mission statement through the years which can be looked at as their weakness not being able to provide a stable one. Our formula is simple: were a growth company focused on better solving the unmet needs of our customers-and we rely on our employees to solve those puzzles. Thanks for stopping. Companys mission in 2005: Best Buy mission is to bring technology and consumers together in a retail environment that focuses on educating consumers on the features and benefits of technology and entertainment products. Revised Mission statement: Best Buys mission is to bring technology and consumers together in a retail environment. We strive to meet and exceed our customers expectations and†¦show more content†¦Their House brands line is poor and sales revenues are low compared to other product lines. They should focus more on improving that. This could harm the company as well as its revenues. 2.Higher or train more skilled peopleEven though they have a popular line of blue shirt workers they still need more specific help people for different areas. Geek Squad workers are limited in number and time and cannot always be of assistance. Also people feel neglected because of large store size. 3.Low gross marginsThe company experienced lower than industry average gross margins, in fiscal 2005. The companys gross margins were 23% as compared to the technology retail industry average of 28% (fiscal 2005). Furthermore, the companys gross margins reduced by 0.1% in 2005. Lower gross margins for the company, as compared to its competitors, reflects poorly on the companys operations. 4.Limited working hours and fewer stores compared to main competitor Wal-Mart5.Still Week presence in international markets Dollar appreciation6.Still unclear vision and mission statement7.Too much bureaucracyC. Opportunity1.Large demand for the latest and greatest gadgets. With the release of new OS Windows 7 Best Buy can drive computer or software sales, or the release of new Apples iPhone. The immense popularity of the Nintendo Wii, Xbox or PS3 may also drive up sales of consumer electronics as well as entertainment software. 2.Potential for greater international expansion.Show MoreRelatedBest Buy Case Analysis643 Words   |  3 PagesBest Buy Case Analysis In 1966 Best Buy began as a single location car and home stereo store founded by Richard Shulze in Minnesota. Now the company is an electronic superstore that has thousands of stores throughout the U.S., Canada, the U.K., and Asia. Best Buy has set themselves apart from its competitors, and have been successful for decades. The electronic superstore sells consumer electronics, home office equipment, appliances, and electronic services. 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