Best Buy Swot

In: Business and Management

Submitted By venusmen
Words 2258
Pages 10
1. To set Best Buy apart from its competitors, Schulze introduced the warehouse-like store format in 1989 and took sales staff off commission. The number of employees per store was reduced by about a third, resulting in significant cost savings. This concept was crucial to Best Buy’s ascent to become the second largest consumer electronics retailer in the U.S. by
1993.
strategy of non-commissioned employees to give customers more control during the purchasing experience.

1966 Richard M. Schulze & partner establish Sound of Music, Inc., a home and car stereo store in St. Paul, Minnesota.
1971 Richard Schulze buys out his partner
1982 Sound of Music Inc. expands to include household appliances.
1983 Sound Of Music Inc. becomes Best Buy Co. Inc.
1985 Best Buy Co. Inc. goes public, with an initial offering of $8.3miilion. New symbol is witnessed on the New York Stock Exchange. BBY
1989 Company introduces its Concept II stores, which have a warehouse format and no commissioned sales help
1992-1993 Best Buy surpasses the $1 billion mark in annual revenues
1994 Concept III stores, with hands-on information displays introduced
1999 Revenues surpass $10 billion
2000 Website www. Bestbuy.com is launched; Acquires Magnolia Hi-fi Inc. for $88 million , adding 13 more stores to the West coast

Fundamentally, Best Buy's strategy is to reduce square footage, increase margin, reduce costs, and grow standalone businesses

By 1993, Best Buy had become the United States second-largest consumer electronics retailer, breaking into Fortune magazine’s annual ranking of top 500 companies two years later at number 373. A partnership with Microsoft in 1999 help to boost the company’s profile and lead to the opening of its first retail store in Shanghai which was followed by stores in Canada, Mexico, Turkey, and nine European countries (Lowe, 2008 May 8). Best…...

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