Strategic Management: Business, Corporate, and Global Strategies

This report provides a comprehensive analysis of Best Buy's strategic management, encompassing business, corporate, and global strategies. It begins with an introduction to strategic planning and its importance, followed by an examination of business-level strategies, including cost leadership, differentiation, and focused/niche strategies. The report then delves into corporate-level strategies such as stability, expansion, and combination strategies. Furthermore, it explores global strategies, including international, multi-domestic, global standardization, and transnational strategies. The analysis concludes with a recommendation for Best Buy to adopt a combination of strategies, emphasizing differentiation and expansion, alongside international strategies to cater to diverse markets. The report references several academic sources to support its findings and provides a conclusion summarizing the key takeaways. This report is valuable for students studying strategic management and business development.

RUNNING HEAD: STRATEGIC MANAGEMENT 0
STRATEGIC PLANNING AND IMPLEMENTATION

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Table of Contents
Introduction......................................................................................................................................2
Business level strategies..................................................................................................................2
Cost leadership strategy...............................................................................................................2
Differentiation strategy................................................................................................................2
Focused and Niche strategies.......................................................................................................3
Corporate level strategies................................................................................................................3
Stability strategy..........................................................................................................................3
Expansion strategy.......................................................................................................................3
Combination strategy...................................................................................................................4
Global strategies..............................................................................................................................4
International strategy...................................................................................................................4
Multi domestic strategy...............................................................................................................4
Global standardization strategy...................................................................................................4
Transnational strategy..................................................................................................................5
Recommendation.............................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Strategic planning is an organization's process for defining the strategies and making
decisions on allocating its resources so that strategy will be implemented. In this report, Best
Buy company is selected, Best Buy is an American multinational consumer electronics retailer,
headquarter of the company is in US and in the year 2019 the revenue of the company is $42.88
billion (Yoder, Visich, & Rustambekov, 2016). The report will describes the business level,
corporate level and global strategies which company can used. The recommendations are also
provided to the company to the organization to implement the strategy.
Business level strategies
The strategy is considered the general guidelines which support the organization to
achieve the goals and objective of the organization (Agarwal & Ansell, 2016). Therefore, these
strategies are linked with the goals and objective of the organization.
Cost leadership strategy
It is the strategy in which organization offer lower prices to the customers and it is
difficult for the competitors to match that prices. This strategy helps the organization to attract
large number of customers in the organization and can help the corporation to raise market share.
However it decreases the innovation and creativity in the product and services (Harrison, Banks,
Pollack, O’Boyle, & Short, 2017). This strategy will be appropriate for Best Buy company
because through this company can target lower income group customers.
Differentiation strategy
It is the strategy in which corporation offer product and services with unique features,
better services, this is done to create loyalty among the customers. This supports the organization
to increase reputation by creating brand loyalty (Mackay & Zundel, 2017). However, it
sometimes become challenging for the organization to adopt dynamic environment and increase
cost of the organization. This strategy will also be appropriate because it can provide the
opportunity to Best Buy for sustaining in competitive environment.

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Focused and Niche strategies
In this strategy corporation mainly target and narrow the segment and use different
strategies to generate more profits and to meet the needs and requirements of the consumers. It
maintains good relationship with the target market and enhances the structure of pricing.
However, this strategy made certain limitation in the growth and also in the initial demands and
needs of the product and services (Harrison, Banks, Pollack, O’Boyle, & Short, 2017). This
strategy will not be appropriate for Best Buy because it can reduce the future growth
opportunities for the company can make Best Buy too specific through which it cannot target
other group.
Corporate level strategies
These types of strategies help the organization to accomplish overall goals and objectives
of the organization, therefore, it the direction provided to the corporation for conducting whole
activities and functions in the organization (Yoder, Visich, & Rustambekov, 2016).
Stability strategy
It is the strategy in which organization serve their consumers through offering similar
product and services in the same marketplace (Barron & Chou, 2017). This strategy support the
organization to maintain good relationship with the customers and organization will conduct the
activities at lower risk (Mazzei & Noble, 2017). However, this reduces the profit and revenue of
the organization, for Best Buy this strategy is not appropriate because through this business
cannot plan for growth and cannot adopt new technologies and innovation.
Expansion strategy
In this strategy corporation increase the scope of the business by entering into new
marketplace by offering new products and services. This strategy helps the organization to earn
more profits and to target customers (Yoder, Visich, & Rustambekov, 2016). This strategy
become more risky for the organization and raise cost, Expansion strategy is adequate for Best
Buy it is due to the reason that through this it can attract customers by focusing on their needs
and demands. .

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Combination strategy
In this organization adopt combination of all strategies such as “stability”, “expansion”
and “retrenchment” (Barron & Chou, 2017). It helps the company to conduct their operations in
the competitive environment but raise the cost, time and activities of the organization (Köseoglu,
Okumus, Dogan, & Law, 2019). This strategy is appropriate for Best Buy because it conduct
their activities in highly dynamic and complex environment.
Global strategies
International strategy
It is the strategy organization use different strategy for different subsidiaries and
maintains less coordination with the center (Appleyard & Chesbrough, 2017). This support the
organization to reduce the cost and more influence through the changes in fluctuation rate.
International strategy is not suited for Best Buy because it uses different strategies for in
different region.
Multi domestic strategy
The organization adopting this strategy is the global approach for marketing the products
and services it is because organization chooses to promote their products and services through
focusing on the needs of local marketplace (Mazzei & Noble, 2017). This support the
organization in reducing the exchanging rate but it increase execution cost due to duplication of
efforts. This strategy is not appropriate for Best Buy because it can reduce the profitability of
organization.
Global standardization strategy
In this strategy organization use same strategies of marketing in all the countries, this
help in achieving economies of scale and reduce cost (Barron & Chou, 2017). However, in this
organization does not offer price with unique features. This strategy is also not adequate for Best
Buy because through this company can reduce customers and cannot understand needs of the
customer.

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Transnational strategy
In this strategy corporation offer product through all channel and involve all the people,
in this organization use same approach to reach all people (Appleyard & Chesbrough, 2017).
This helps the organization in increasing their learning about market and become costly for the
organization. Transnational strategy is suitable for Best Buy it is due to the reason that it become
difficult for the company to adopt this strategy.
Recommendation
From the previous evaluation it is concluded that company operates their operations in
highly competitive environment and has more customers because of high brand loyalty among
the customers. The company adopts differentiation strategy to operate their operations in
international market. Therefore, for this organization can adopt combination of business level
strategies such as Best Buy can use both cost leadership and differentiation strategy so that it can
gain competitive advantage. Best Buy can also apply international strategy so that it can adopt
different approaches and strategies for diverse nation. This can help the organization to
understand the needs and requirements of different customers (Barron & Chou, 2017).
Conclusion
From the above it is conclude that there are various business and corporate level
strategies but differentiation and expansion is the suitable strategy for Best Buy because it is the
well-established company and has more customers, this strategy reduce the brand loyalty among
customers. Therefore, to overcome the competition organization can used combination of “cot
leadership” and “differentiation” strategy.

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References
Agarwal, R., & Ansell, J. (2016). Strategic change in enterprise risk management. Strategic
Change , 25 (4), 427-439.
Appleyard, M. M., & Chesbrough, H. W. (2017). The dynamics of open strategy: from adoption
to reversion. Long Range Planning , 50 (3), 310-321.
Barron, K., & Chou, S. Y. (2017). Toward a spirituality mode of firm sustainability strategic
planning processes. Society and Business Review , 12 (1), 46-62.
Harrison, J. S., Banks, G. C., Pollack, J. M., O’Boyle, E. H., & Short, J. (2017). Publication bias
in strategic management research. Journal of Management , 43 (2), 400-425.
Köseoglu, M. A., Okumus, F., Dogan, I. C., & Law, R. (2019). "Intellectual structure of strategic
management research in the hospitality management field: A co-citation analysis.
International Journal of Hospitality Management , 78, 234-250.
Mackay, D., & Zundel, M. (2017). Recovering the divide: a review of strategy and tactics in
business and management. International Journal of Management Reviews , 19 (2), 175-
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Mazzei, M. J., & Noble, D. (2017). Big data dreams: A framework for corporate strategy.
Business Horizons , 60 (3), 405-414.
Yoder, S., Visich, J. K., & Rustambekov, E. (2016). Lessons learned from international
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