Analysis of Case Study 2022

Running head: ANALYSIS OF CASE STUDY
ANALYSIS OF CASE STUDY
Name of student
Name of university
Author’s note:

1
ANALYSIS OF CASE STUDY
Best Buy, a leading name in consumer electronics is the largest retailer in the world providing
a variety of electronic products according to consumer requirements. In 2013 it reported total
revenue of $45 billion and it shows dominance of this company in retail industry. However,
this is not something that have been achieved easily, it required some risky business decision
which eventually provided to be successful for this organization (Sawhney, Goodman &
Keerthivasan, 2017). From 1980, it started exploring national markets and for this they took
some risky decision for example providing salary to staff who worked on commission.
However, another important thing that contributed to the success of this organization is its
capability to read market demand better than its competitors. In 1990s, it expanded its
offerings in computer products and by 1995, it became largest seller in home PC which
became an important market thanks to internet bloom that completely redefined that era.
However, like any other industry, this industry was also not free from competition and retail
competitors like Costco, Walmart, and Target also boosted their electronic products offering
as it seemed to a profitable industry. It not only increased competition but provided serious
challenge to market dominance of Best Buy. However, large companies know how to manage
competition so that it does not affect its business process (Birkinshaw, 2018). Best Buy
enhanced quality of their consumer service so that it is easier for consumers to differentiate it
from its competitors and considered some important strategies in this context. Some of its
important business strategies are redesigning store layout bringing apple products in front
which were great in demand providing 67% increase in its sale, offering online shopping to
its consumers to increase its online market share from 7% to compete with amazon with only
4% market share in electronic products but an overall 21% online market share (Wells &
Ellsworth, 2016). These strategies shows that Best Buy always experiment with market
strategies for enhancing its business process which is important to consider as well.

2
ANALYSIS OF CASE STUDY
References:
Birkinshaw, J. (2018). Best Buy: collective wisdom in decision making. The Business &
Management Collection.
Sawhney, M., Goodman, P., & Keerthivasan, G. (2017). Best buy: Creating a winning
customer experience in consumer electronics. Kellogg School of Management.
Wells, J. R., & Ellsworth, G. (2016). Reinventing Best Buy.