Best Buy Company: Strategic Planning and Implementation Report

This report provides a comprehensive analysis of Best Buy Company's strategic planning and implementation. It begins with a company overview, followed by an examination of its internal and external environments. The report utilizes SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. It then delves into the general, industry (Porter's Five Forces), and external (PESTLE) environments, evaluating factors such as industry rivalry, supplier and customer bargaining power, the threat of substitution and new entry, as well as political, economic, social, and technological factors. The organizational structure and competitive position of Best Buy are also discussed, leading to a conclusion summarizing the key findings and implications for the company's future. The report is based on secondary research and provides valuable insights into Best Buy's strategic approach and its position in the market.

RUNNING HEAD: STRATEGIC PLANNING AND IMPLEMENTATION
BEST BUY COMPANY
MANAGEMENT
STRATEGIC PLANNING AND IMPLEMENTATION

STRATEGIC PLANNING AND IMPLEMENTATION 1
Introduction
The report focuses on an organization named ‘Best Buy Company’. Emphasizing on
report structure, the first section includes the company overview. The next section includes
the environment analysis of the company. This part includes the analysis of general, industry
and external environment. The following section comprises of its organization structure and
its role in business performance. The passing part comprises of its competitive position and
its possibilities.
Business overview
Best Buy Company is an American company. Richard N. Schulze founded this
company in 1966. It deals in electronic products like laptop and Television. It has its units in
multiple countries including Canada, and Mexico. In United Nations, it has 1025 stores.
Globally, it has more than 210 stores (Vault, 2019). Based on employee reviews, it is
assessed that Best Buy Company provides fine working environment to its employees
(Indeed, 2019).
SWOT Analysis
SWOT Analysis includes the assessment of an organization’s Strengths, Weaknesses,
Opportunities and Threats. It benefits the company in better future planning and minimizing
its potential risks. Below is the SWOT Analysis of Best Buy Company.
Strengths: Best Buy Company has its presence in multiple countries like Canada and
Mexico (Vault, 2019). Failure in one country will not lead to overall business failure.
Therefore, its presence in multiple countries acts as its strength. Its employee high strength
also acts as strength for the company (Macrotrends , 2019). This is because it helps the
company in dealing accurately with its customers.
Weakness: Best Buy Company’s poor reviews on digital platforms act as a weakness.
This is because it is degrading company’s goodwill in the market (Trustpilot, 2019).

STRATEGIC PLANNING AND IMPLEMENTATION 2
Figure 1: Poor customer reviews
Source: (Trustpilot, 2019)
Opportunities: It has expended its products offering in its stores. It will give rise to
more potential customers and higher sales. Therefore, it acts as a chance for Best Buy
Company. The rising population of United States act as chance for the company (Heritage ,
2019). This is because it increases the potential customers for the company.
Threats: Best Buy Company faces mediate competition from its competitors. It
includes Walmart, Target, Costco and Amazon (Owler , 2019).
Resource assessment
Best Buy Company has employee strength of 125000 (Macrotrends , 2019). Its
employee’s acts as human resource. In the year 2019, it has earned revenue of $9.764B. This
states that it has adequate financial resources. This is because it is experiencing a continuous
growth in its annual revenue (Macrotrends , 2019).
Environment analysis
There are multiple internal and external environment factors that lay an impact on
Best Buy Company.
General
Best Buy Company offers multiple benefits to its employees. It includes competitive
pay, paid holidays, incentives, discounts, life insurance. It also provides educational training
and certification courses. Its high number of benefits has assisted the company in gaining

STRATEGIC PLANNING AND IMPLEMENTATION 3
high customer strength (Bestbuy, 2019). Additionally, it has assisted the company in raising
more satisfied employees in contrast to its competitors (Payscale, 2019). Therefore, its
satisfied employees contribute to fine working environment in Best Buy Company.
Figure 2: Best Buy Company satisfaction rate
Source: (Payscale, 2019)
Industry (Porter’s Five Forces)
1. Industry Rivalry: Best Buy Company’s competitors include Walmart, Target and
Amazon (Owler , 2019). It faces strict competition from Walmart and Amazon. This
is because they offer products at comparatively low price.
2. Supplier’s bargaining power: Its suppliers are Apple, Samsung, Sony, LG and
Hewlett-Packard (Bailey, 2015). They have mediated bargaining power. This is
because its suppliers are few and they are large companies.
3. Customer’s bargaining power: Its customers have mediated bargaining power. This
is because high population of America (325.9 million) states that high customers
prevail in the industry (Heritage , 2019). Additionally,
4. Threat of substitution: Best Buy Company experiences high threat of substitution.
This is because its competitors offer similar electronic products at competitive prices

STRATEGIC PLANNING AND IMPLEMENTATION 4
(Bariso, 2019). Additionally, product switching cost is also low (shift from Best Buy
Company electronic product to Amazon/Walmart electronic product).
5. Threat of new entry: Best Buy Company faces low threat from new entrant. This is
because existing companies like Walmart and Amazon has high brand reputation in
the market. Additionally, they also possess patent rights.
External (PEST Analysis)
Political Factor: The US government provides business freedom to the companies
(Heritage , 2019). Best Buy Company faces no problem in conducting its business activities
beyond the national boundaries of the country.
Economic Factor: The Per Capita Income of Americans is $59,501. This states that
adequate economy growth prevails in United States of America (Heritage , 2019). This states
that customers do not faces problem in purchasing Best Buy Companies products.
Social Factor: About 75% of US population is highly sensitive to price (Statista ,
2018). This states that Best Buy Company faces problems in raising the price of its
commodity as buyer are price sensitive.
Technological Factor: Global, US attain a third rank for innovation (Radu, 2019).
Therefore, it helps the Best Buy Companies in availing the use of innovative technology in its
electronic products.
Organizational structure
Best Buy Company is a follower of traditional functional organizational structure. As
per this structure, multiple departments are developed in the organization. Therefore, its
employees are divided into according to their functions. The flow of information is from top
authority to bottom level of organization. Example: The head of the Best Buy Company
(CEO) passes information to subordinate or lower department (Executive). Best Buy
Company’s employee faces difficulty due to its organizational structure. This is because they
only receive information but fails to send to upper level of management (Theofficialboard,
2019).

STRATEGIC PLANNING AND IMPLEMENTATION 5
Competitive position
As mentioned previously, Best Buy Company faces high competition from ‘Amazon’
and ‘Walmart’ (Bariso, 2019). Therefore, it has mediate competitive position in the market.
This gave rise to the possibility of decrease in loyal customers, low sales, less market share
and reduction in overall business profit.
Conclusion
The report states that Best Buy Company is a large business enterprise with
significant presence in United States and global market. The report concludes that Best Buy
Company experiences passable business environment in context of general, industry and
external factors.

STRATEGIC PLANNING AND IMPLEMENTATION 6
Bibliography
Bailey, S. (2015, January 19). Best Buy joins forces with key suppliers. Retrieved December
23, 2019, from Marketrealist: https://articles2.marketrealist.com/2015/01/best-buy-
joins-forces-key-suppliers/#
Bariso, J. (2019, December 23). Amazon Almost Killed Best Buy. Then, Best Buy Did
Something Completely Brilliant. Retrieved December 23, 2019, from Inc:
https://www.inc.com/justin-bariso/amazon-almost-killed-best-buy-then-best-buy-did-
something-completely-brilliant.html
Bestbuy. (2019, December 23). Job Benefits . Retrieved December 23, 2019, from Bestbuy:
http://www.bestbuy-jobs.com/benefits/
Heritage . (2019, December 23). United States. Retrieved December 23, 2019, from
Heritage : https://www.heritage.org/index/country/unitedstates
Indeed. (2019, December 23). Employee reviews . Retrieved December 23, 2019, from
Indeed : https://www.indeed.co.in/cmp/Best-Buy/reviews
Macrotrends . (2019, December 23). Best Buy Revenue 2006-2019 | BBY. Retrieved
December 23, 2019, from Macrotrends :
https://www.macrotrends.net/stocks/charts/BBY/best-buy/revenue
Macrotrends . (2019, December 23). Best Buy: Number of Employees 2006-2019 | BBY.
Retrieved December 23, 2019, from Macrotrends :
https://www.macrotrends.net/stocks/charts/BBY/best-buy/number-of-employees
Owler . (2019, December 23). Best Buy's Competitors, Revenue, Number of Employees,
Funding and Acquisitions. Retrieved December 23, 2019, from Owler :
https://www.owler.com/company/bestbuy
Payscale. (2019, December 23). Average Hourly Rate for Best Buy Employees. Retrieved
December 23, 2019, from Payscale :
https://www.payscale.com/research/US/Employer=Best_Buy/Hourly_Rate
Radu, S. (2019, August 8). The U.S. Is (Again) Among the World's Top Innovators. Retrieved
December 23, 2019, from Usnews:

STRATEGIC PLANNING AND IMPLEMENTATION 7
https://www.usnews.com/news/best-countries/articles/2019-08-08/us-returns-to-top-3-
in-global-innovation-ranking
Statista . (2018, October 10). U.S. consumers' rating of price sensivity 2013. Retrieved
December 23, 2019, from Statista : https://www.statista.com/statistics/269208/us-
consumers-rating-of-price-sensitivity/
Theofficialboard. (2019, August 14). The Official Board. Retrieved December 23, 2019, from
Theofficialboard: https://www.theofficialboard.com/org-chart/best-buy
Trustpilot. (2019, December 23). Best Buy. Retrieved December 23, 2019, from Trustpilot:
https://www.trustpilot.com/review/www.bestbuy.com
Vault . (2019, December 23). Company profile . Retrieved December 23, 2019, from Vault :
https://www.vault.com/company-profiles/retail/best-buy-co-inc