Best Buy Critical Analysis

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Best Buy Critical Analysis Background: In 1966, Richard Schulze found the “Sounds of Music Store,” what we all know today as Best Buy, in St. Paul, Minnesota which expanded into a retail chain selling several electronic products most famous for their stereos. In 2011, Best Buy was operating in 2,900 retail locations worldwide and currently the only electronic retail chain in the market today. Best Buy is a global retailer that specializes in consumer electronics but is gradually becoming dispersed. The company has began to engage in the reconstruction of a new plan to find a solid ground to help their revenue increase. Problem: Best buy faces a lack of competitor advantage against the virtual retailers which is perhaps the leading cause of decline for them. Although the company currently operates in thousands of locations, electronic big box stores are becoming obsolete due to the cheaper, faster, more convenient and less expensive products that can be purchased from an online retailer. In addition, virtual retailers “don’t need to own and operate expensive real estate or staff their stores even when there are few customers around, or maintain inventories for display purpose.” In contrast, retailers may still hold an upper hand on certain products that consumers require to see and hear in person and to acquire the knowledge of an experienced expert. The large amount of products at Best Buy allow the consumer to do their research in the store but in-turn purchase them at a lower cost online. Alternative Solutions: There are three strategies Best buy can use to potentially increase revenue and decrease the current disadvantages. These strategies include exclusive deals, job training, and loyalty programs. One strategy, it would seem is to offer exclusive deals or products that aren’t offered anywhere else. If Best Buy can focus on

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