1. Analyze Best Buy's competition and industry environment using the competitive forces model. Include strengths and weaknesses of major competitors in the analysis?
2. What macro-environmental trends and internal factors should Best Buy consider in developing new strategies? What actions might Best Buy take as a result?
3. Is the customer centric model used by Best Buy creating value?
4. How should Best Buy position itself and what process should it use to react or reposition itself?
5. What actions should Best Buy take to align a new strategy, if necessary, with the industry environment?
6. With technology advancing so rapidly and creating increased costs for Best Buy, what strategies should the company consider to remain competitive?
7. Given your analysis of Best Buy through previous questions, what global strategies may be appropriate for the company?
This case conveys Best Buy's deployment of a differentiation strategy focused upon its application of a customer-centric operating model. Primary points in the case include Best Buy's superior service orientation, acquisition for growth, and constant review of the business model and competitive forces for sustainability. Beginning as an audio components retailer, the Best Buy superstore is now the largest U.S. consumer electronics retailer with a 4000 store market presence globally because of its approach to differentiation rather than operating as low price. Providing service to its more than 155,000 employees through bold compensation changes and greater investments in training resulted in greater service to customers. Customers now have more control over the purchasing process and help in meeting their specific needs. Best Buy's mass marketing techniques, acquisitions, and expanded product lines have been successful in bringing the best in technology to a world of customers. However, in recent years, external factors, competitive forces, and societal trends have prompted Best Buy to incur increasing costs and to search for new ways of providing innovative products, top-notch employees, and superior customer service?