Marketing Excellence: An Analysis of the Best Buy Case Study

This case study analyzes Best Buy's journey as a leading consumer electronics retailer, highlighting its strategic decisions and marketing approaches. The analysis covers Best Buy's expansion into national markets, risky decisions such as shifting sales staff to salaries, and the expansion of computer product offerings. It further delves into how Best Buy adapted to market demands, especially in response to competition from retailers like Costco, Walmart, and Target. Key strategies discussed include redesigning store layouts, focusing on consumer service to differentiate itself, and adapting to online shopping trends. The study examines Best Buy's ability to cater to specific customer segments, such as Eastern European workers, by modifying store layouts and product placement to increase sales. Overall, the case study illustrates Best Buy's ability to experiment with market strategies to enhance its business processes and maintain its market position.

Running head: ANALYSIS OF CASE STUDY
ANALYSIS OF CASE STUDY
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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.

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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.