BEST BUY

Best Buy

Best Buy

The Company

Best Buy is the largest electronics specialty retailer in the United States. Best Buy stores sell home office equipment, audio/video equipment, cameras, appliances, personal computer services, DVD's and CD's. The mission of the company, “to bring technology and consumers in a retail environment that focuses on educating consumers on the features and benefits of technology and entertainment products” is based off of a fundamental vision “to make life fun and easy for the consumer”. In keeping with this mission, Best Buy locations are visible and easily accessed and a new customer-focused store concept has been recently introduced, “Customer-Centricity” to make the consumer's visit to Best Buy pleasant. The effectiveness of the mission is apparent when you consider that the net sales for Best Buy from 2003 to 2005 steadily increased from $20.9 to $27.4 million.

The company is sub-divided into five different divisions to serve consumers. A Best Buy U. S. operation is the largest of the 5 sub-divisions. It consists of 668 stores (not including divisional operations) across 49 states. There are twenty Magnolia Audio Video stores which span across Washington, Oregon and California. The stores are similar to the other Best Buy stores in U. S. except they specialize in high-end electronics and house commissioned employees. Also, for the convenience for their high-end consumers, a service department is included in each Magnolia Audio Video location. Best Buy has a presence in Canada through its 30 Best Buy Canada stores which mirror the Best Buy U. S. stores and 114 Future Shop locations which mirror the Magnolia Audio Video Stores. Geek Squad Inc. is the final division of Best Buy which offers residential and commercial computer support services 24 hours a day. The Geek Squad guarantee is that 'if for any reason you are not completely satisfied with our service, we'll remedy the problem free of charge.” Geek Squad is located in all U.S. and Canadian locations. There are six stand-alone locations with 20-50 stand-alone locations planned for the future. These divisions, in addition to Best Buy's online sites; www.bestbuy.com, www.bestbuycanada.ca, and www.futureshop.ca help distinguish the company in today's market.

SWOT Analysis

Strengths - SWeaknesses - W

1. Largest Electronic retailer in U.S. 668 Best Buy stores in 49 states, 20 Magnolia Audio Video in WA, CA, OH.1.. Best Buy removed popular Adult only video game from website and stores causing decrease in Entertainment Software Sales 2005

2.Strong brand. Been in business 37 years2.None of the Best Buy stores in Canada carry appliances.

3.Entertainment Software Sales constant 15% international revenues3.Best Buy U.S. has 8 distribution centers serving the U.S. stores. 5 are owned, 3 are leased.

4.Canadian sites language is in French and English

5.Net Sales steadily increased from $20.9 million to $27.4 million from 2003 to 20055.No international stores outside US and Canada

6.Major competitor, Circuit City does not carry appliances which is 6% of Best Buy's annual revenue6.Trucking services are used to transport goods to store locations in Canada from British Columbia and ...