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• Important facts in this case
o Best Buy is a Fortune 100 company and the largest specialty retailer of consumer electronics in the United States and Canada, accounting for 21% of the market. The company's subsidiaries include Geek Squad, Magnolia Audio Video, Pacific Sales, and, in Canada the Best Buy Canada subsidiary operates most stores under the Future Shop label. Together these operate more than 1,150 stores in the United States, Puerto Rico, Canada, China, Mexico and Turkey. The company's corporate headquarters are located in Richfield, Minnesota.
o Best Buy’s main competition is Circuit City. However, Best Buy also competes in other markets such as appliances, music, cameras, etc. In these markets, it hosts a variety of competitors including: Sears, Office Depot, and Staples.
• Environmental & Competitive Scan
o External Factors
 Rising gas prices result in less money for the consumers to spend and higher costs of shipping products.
 Music piracy is forcing companies to raise prices and in turn is forcing Best Buy to raise prices.
o Internal Factors
 Currently, Best Buy dwarfs its competition. It boasts nearly 3 times the amount of sales of its biggest competitor Circuit City. This may cause a laizze fair attitude and Circuit City may have a chance to creep up on Best Buy.
 Even though Best Buy is dominating its competitors, its market share has not been sky rocketing. This may become a problem as companies such as Circuit City continue to grow and gain popularity and name recognition.
• What are the critical success factors in this industry? How well does this company address those critical success factors?
o Exporting agreements with other countries and associated taxes
o Oil prices
o Music, movie, video game piracy
• Internal Scan – What are the company’s internal strengths and weaknesses relative to critical success...