Best Buy is a very unique retail chain. They have the opportunity to sustain market leadership and compete in this challenging market because they offer full, complete service to their customers. In the 2014 letter to the shareholders, Best Buy mentioned that they do recognize that with the decreasing product cycle in current technologies, internal cost and spending margins are fairly high and uncontrolled and the pricing wars between themselves and their competitors directly contribute to the success or failure of company. Best Buy has several of growth options that can be considered in order to overcome the negative outlook that some customers have about the price points at their mega store or small store fronts. By deepening the relationship
…show more content…
By the end of the fiscal year of 2014, the company had closed 20 stores in the US market and 21 stores in the international segment, leaving a total of 1,941 stores. Another method on top of that to attempt to distract some from looking at price points while also decreasing there cost to avoid spending more than they are returning is to enhance its merchandising efforts by increasing the selection of products and brands that they sell in store. One of the many priorities of Best Buy is to display a captivating variety of key products in its stores. In 3Q 2015, the company enhanced its appliances display by opening 15 Pacific Kitchen and Home stores-within-a-store. Best Buy intends to end the year with 117 such stores.
While sitting back taking a good look at Best Buy Co. Inc, as a whole, and comparing them to retail chains like Amazon, Wal-Mart and Target I noticed that the price element of the business strategy just may be the primary cause of their loss in position behind other chains. Even with two of the three being multi-channel retailers with grocery, clothing, film, pharmacy etc., they pride themselves on maintaining that everyday low prices and we as consumers do not see that changing any time
By the end of the fiscal year of 2014, the company had closed 20 stores in the US market and 21 stores in the international segment, leaving a total of 1,941 stores. Another method on top of that to attempt to distract some from looking at price points while also decreasing there cost to avoid spending more than they are returning is to enhance its merchandising efforts by increasing the selection of products and brands that they sell in store. One of the many priorities of Best Buy is to display a captivating variety of key products in its stores. In 3Q 2015, the company enhanced its appliances display by opening 15 Pacific Kitchen and Home stores-within-a-store. Best Buy intends to end the year with 117 such stores.
While sitting back taking a good look at Best Buy Co. Inc, as a whole, and comparing them to retail chains like Amazon, Wal-Mart and Target I noticed that the price element of the business strategy just may be the primary cause of their loss in position behind other chains. Even with two of the three being multi-channel retailers with grocery, clothing, film, pharmacy etc., they pride themselves on maintaining that everyday low prices and we as consumers do not see that changing any time