Strategic Management

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT
Introduction:
The modern business world is observed to experience a notable growth in the retail
sector (Rhodes & Brien, 2014). Many of the organizations, operating in the mentioned
industry are seen to flourish and achieve the desire growth in a significant manner. One such
organization in the retail industry of the United States is observed to be in the form of Best
Buy. The paper is focused in the elaboration of market trends of the retail industry. Apart
from that, the paper analyses the internal and the external environment of the chosen
organization. With a precise focus on the finding of the analysis, the paper also recommends
some of the key developmental strategies for the chosen organization as well.
Industry Overview:
The consumer electronics market of the chosen cuntry is expected to ghave a
significant growth in the coming years. The expected revenue that the chosen industry in the
year 2019 is 76998 million US dollars (Statista.com, 2019). Aprt from that, the revenue of the
chosen indusry is expecte to achieve a growth of 6.2% over the time span of 5 years starting
from 2019 to 2023 (Statista.com, 2019).
Competitor Discussion:
The major competitirs of the organiztaion are observed to be Walmart, Target
Corportation, Costco and Staples. The revenue of one of their fiercest competitors Walmart is
expected to be 514.415 billion US dollars and for Target Corportation, the sum of the revenue
is seeb to be 71.88 billion US dollars at the end of the 2017-18 finnancial year (Walmart.com,
2019). Costco had a revenue of 129 billion US dollars in the year 2017 and Staples is
observed to achieve 20.217 billion US dollars in he year 2016 (Costco.com, 2019).

2STRATEGIC MANAGEMENT
Porter’s Five Forces:
Threat of new entrants: Low
With the concerns regarding the infrastructural development and the significant
competition of the market based on the application of the competitive pricing policy, the new
organizations are seen to find it difficult to enter the market.
Threat of Substitution: High
With the almost equal stand of the organizations in terms of applying the low pricing
policy for the achievement of the larger customers and with the intention of producing quality
products in the cheapest rates possible, the above market leaders are providing notable
amount of options for the customers to choose from. Hence the threat of substitution for the
organizations is evaluated to be high.
Competitive Rivalry: High
The chosen business indusry is seen to be significantly competitive with the
representation of the organizations such as Walmart, Target Corportation, Costco and Staples
(Target.com, 2019). In addition to this, the basis of the compaetition is observed to be the
quality of the products and the achievement of the preferences of the csuomers through the
design of the products.
Bargaining Power of the Buyers: High
As it is pretty evident that the market leaders of the mentioned industry are able to put
their best efforts in competiting for the applicaion of the low pricing of the products even
after maintaining the desired quality of the products, the customesr are left with considereable
number of options to choose for purchasing the products.