Beruflich Dokumente
Kultur Dokumente
Patgiri
• 17020341059
Retail
Ankush
Marketing Kumar
• 17020341115
Assignment Jobin
• 17020341128
George
Krunal
Tembhurne
• 17020341158
The second competitive advantage revealed by the VRIO framework is Best Buy’s excellent
customer service. If customers need real advice on consumer electronics, they’re not going to find it
at Walmart, Target, or Amazon.com; instead they head to Best Buy.
The company invested big dollars in training their blue shirts so that they can provide the
ultimate experience for its customers.
This is also an advantage that is sustainable due to the well-established brand image
around these blue shirts, which cannot be clouded by any attempt from their competitors.
3. Business level strategy to combat external changes
Attract Transformational Leaders
Comeback Strategy
Building a superior logistics and supply chain management to provide consumers with a wide
breadth of merchandise at low price. The competition in this segment is cut-throat and hence pricing
becomes a key driver of sales. So an efficient operations management will help in keeping the costs
at an optimal level and the prices competitive.
Improving customer experience at retail stores such as giving them hands-on access to the
latest products, one-to-one tech support, etc. Also the location of retail outlets should be such that it
attracts the intended target demographic for the products.
4. Realising growth in consumer electronics industry
Creating online retail stores to provide customers with a wide breadth of products and the
convenience of online shopping. Online stores provide the ability to undercut the competitors on
price. Without brick and mortar stores, online stores avoids the cost od retail real estate, inventory
displays, and an onsite sales force. These savings can be transferred as attractive benefits to the
customers.
Building exclusive brands to offer niche products to the customers. A company can build its own
portfolio of private-label brands to target different segments of customers. For example, offering high
end and low end products under two different brand names.
5. Is Best Buy’s strategy transferable to international
markets? Why or why not?
Current situation:
Best Buy stands at 13th in Global Retail brands with a brand value of 5104 billion dollars.
Low score in terms of Brand Momentum (3/10) which measures its growth potential of brand driven
earnings.
In consumer perceptions survey, brand awareness of Best Buy has fallen while that of Amazon and other
brands have increased significantly.
It closed all of its branded stores in China, Turkey and UK after it decided to shift from Big Box stores to
Connected Box format.
Market share of Best Buy stands at 3.2% in worldwide consumer electronics market.