Best Buy

[Name of the institute]

Introduction

In today's world where entrepreneurship and owning your own business is considered to be the latest fashion to acquire wealth and status we see a lot of new businesses launching every month and every year but only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it. Strategies are the nub that decides the success or failure of an organization. The aim and objective of this paper is to talk about the strategies of Best Buy. Best Buy is an international retailer that deals in the field of electronics, appliances, home office products, entertainment software and related services.

Strategies of Best Buy Responsible for Success or Failure

The company recorded revenues of $50,272 million in the financial year ended February 2011 (FY2011), an increase of 1.2% over FY2010. The increase in revenues was primarily attributed to the net addition of 147 new stores during FY2011 (Best Buy Fiscal Report,2011). In January 2012, Striiv and Best Buy announced a partnership to bring the Strive personal fitness device to Best Buy stores (Bestbuy.com, 2012). This description shows that the main strategy that Best Buy opts for is expansion of the business.

Strategies of Best Buy in Comparison with Goals and Missions

The mission of the Best Buy is to become a growth company that would be focused on the meeting the unmet needs of the customers in a better way. By utilizing the skills and expertise of employees Best Buy enables to fulfill this mission (Bestbuy.com, 2012).

The strategies that Best Buy adopts are aligned with the mission of the organization. As also mentioned above that Best Buy was able to increase profit because of growth and expansion of its business so, it is clear that Best Buy prefers expansion of the business and live up to its mission. To fulfill its mission Best Buy adopts following strategies:

One strategy of Best Buy is to capture new growth opportunities and target online opportunities. The unrelenting pace of change in technology provides both opportunities and challenges for their customers, and they believe they are well positioned to help them navigate through these and to enrich their lives through the use of technology (Bestbuy.com, 2012).

Best Buy Weaknesses and Threats

It was in 2009, when the Best Buy recalled two products voluntarily. These two products include Rocket fish Universal AC/DC/USB Portable Power Source Model RF-INV80 and Insignia Television Model IS-LCDTV26 (Bestbuy.com, 2012). The recalls highlight the basic problem of difficulty in quality controls in electronics manufacturing. Best Buy has been suffering from a high penetration of lower-margin products like notebooks and flat panel televisions. Sales of high margin products like entertainment software have been declining as competition from the digital downloads increases and the market matures. Increased promotions and reduced product prices adversely impact gross margin.

One of the threats for Best Buy is its cautious consumer still unable to lead recovery in the ...