Best Buy Co Inc Swot Analysis

In: Business and Management

Submitted By dramaticmezzo
Words 752
Pages 4
Summary:

Best Buy Co. Inc. (NYSE: BBY) was established in 1966 and since it inception has become one of the largest specialty retailers in the United States. Best Buy is a multinational electronics and appliance retailing company, specializing in consumer electronics, household appliances, software, and home-office products. Best Buy employs nearly 170,000 people with over 1,400 locations.

Strengths
• Physical Stores
• No. 1 electronics retailer
• Knowledgeable personnel
• Smart acquisitions
Weaknesses
• Physical stores
• Reorganizations diluting customer service experience
Opportunities
• Growing online demand
• Private Branding
• Mobile broadband (phones, tablets)
Threats
• Intense online competition
• Local discount retailers
• Constrained credit availability

Strengths:
Physical Stores –
One of Best Buy’s biggest strengths is also one of its biggest weaknesses – it’s physical stores. “Brick and mortar is where every dimension of the brand comes alive for us to see, feel, smell, touch, taste, and hear. The store does what technology cannot — allows us the full usage of our senses.” (Excerpt from the article ‘Let’s Not Forget the Store: Why Brick and Mortar Still Matter in a Multichannel World’, 2012).

No. 1 Electronics Retailer –
Best Buy Co, Inc. is the largest consumer electronics retailers in the US holding 20% market share in 2011 and is ranked no. 5 on Interbrands Best Retail Brands 2012. (Interbrand.com, 2012)

Knowledgeable Personnel –
Best Buy understands the need to recruit, train and retain qualified personnel in order to create the service experience that customers have come to expect. Their end-to-end customer service is what differentiates Best Buy from discount electronics retailers and online retailers.

Smart Acquisitions -
In FY03 Best Buy Co Inc. acquired Geek Squad, Inc. in an effort to offer more…...

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