Best Buy Case Analysis

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Best 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. Best Buy showed that they were the electronic store giant when their competitors, Circuit City and CompUSA were shut down due to the recession. Unlike these companies, the recession did not slow Best Buy’s revenue until 2011 when they had a sluggish 1.16 revenue growth for the 2011 fiscal year. Although two of their major competitors shut down due to the recession, several more emerged and proved to be threats to the electronic superstore giant. Wal-Mart, Amazon, Costco, and Radio Shack all have proven to be threats to Best Buy for numerous reasons. Each of these competitors distinguish themselves enough from Best Buy to be able to compete with each other. From Costco’s wholesale, Amazon being able to get past the state tax, and Wal-Mart’s logistics they have proven to be able to compete against Best Buy. As of recently Best Buy has seen a decrease in average growth. In the last five years it’s growth was at 10.26 percent, but in the last three years it has dropped to 7.9 percent. What makes Best Buy different from its competitors is the services they provide. They provide customer service known as Geek Squad that helps with the installation, repair, and customer support for those who need it. This has proven to be one of their attributes and what sets them apart from their competitors. In order to compete with Amazon they have provided their own mobile site for customers to browse and shop so they can…...

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