Best Buy Co., Inc. is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services (“Best Buy Company Inc.”, 2012). They are one of the world’s largest retailer, and the only one left after the closure of Circuit city in 2009 and Comp USA before that (“Best Buy Company Inc.”, 2012). Best Buy is dedicated to providing customers with outstanding choice, unbiased advice and unmatched support for their technology needs. The company’s stated mission is to treat customers as unique individuals, meeting their needs with end to end solutions, and engaging and energizing its employees to serve them, while maximizing overall profitability ( ). Innovation and exceeding customer expectation is how Best Buy tries to reach its profit margins. They do so by selling high volume and make as much profit on in store warranties and services. Best Buy’s Geek Squad provides residential and commercial computer repair, support and installation services. According to American Community survey estimation 96 percent of Best Buy’s target market is university and college students (“Best Buy Company Inc.”, 2012).
One of Best Buy’s main competitive strategies is to emphasize on services. They do so by focusing on selling product warranties, or helping with installations whether it’s a home theater or configuring a computer. The Geek Squad has expanded beyond PC services.
Stores like Wal-Mart, Target and Amazon are looking to take advantage of Best Buy since it is now a stand-alone electronics retailer.
3. Barriers to Entry
Effective inventory management is critical in