MGT675 – Best Buy Case Study – Best Buy is one of the largest consumer electronics retailers in the United States. Having outpaced some of their largest competitors in the specialty big box format stores, Best Buy now takes on the challenge of sustaining its success against competitors in the online realm, such as Amazon, and discount retail giants such as Walmart and Costco. Best Buy is faced with the challenge of maintaining a sustainable competitive edge by exploiting their own competencies and capabilities.
Best Buy’s customer base is hard to refine into a specific set of demographics and psychographics since Best Buy consumer profiles are vastly diverse. However, Best Buy does not attempt to generate “needs” for their consumers through their offerings of products and services, but rather, they focus on what their consumers require, and focus on providing these goods with the best possible customer service support system. This unique approach in their industry helps Best Buy to differentiate itself from its major competitors – an essential part of its brand, and therefore an essential competitive advantage.
Throughout its over 45 years, Best Buy has been able to keep abreast in an industry where technology is in constant flux. This dynamic field itself presents not just the challenge of staying ahead of the curve, but the opportunity to brand the company as an innovator, thought-leader and first mover in the consumer electronics industry. Best Buy can invest into anticipating their consumers’ needs with greater accuracy at greater speeds.
This allows them to educate themselves, and Best Buy employees on the latest technologies, providing even better customer service – another opportunity for a competitive advantage. While the world moves into the digital era, it is essential that Best Buy build its presence in the online realm. Their dedication to customer service and attention to detail should carry over into their websites. Web presence should offer a greater opportunity to personalize and customize the Best Buy experience. It presents the opportunity to gain even greater insight into onsumer purchasing decisions, enabling Best Buy to sustain this competitive advantage. The limitless supply of tools, software programs and strategies that can be employed should further propel Best Buy to invest more into their online presence, in order to stay competitive with online consumer retail giant Amazon. Best Buy should also invest into deeper demographic, geo-demographic and pyschographic study of their wide portfolio of consumers. Brick-and-mortar stores can be downsized to showrooms in regions where geo-demographic studies show a preference for online shopping.
Moreover, Best Buy should continue to invest resources into international expansion in order to continually build the Best Buy brand. Cost-cutting strategies will need to be employed to ensure Best Buy’s continued success, but should not come at the expense of Best Buy’s personalize customer service, or attention to anticipating consumers’ needs. Best Buy needs to use their magnitude and current market share to forcefully increase both their online presence, and their international presence in order to create a sustainable competitive advantage.