Victoria N Wilbert
December 1, 2014
Business Model and Strategic Plan Part I: Conceptualizing in Business
Innovation is a money and time saver that will help an organization achieve a competitive advantage to grow and adapt in the marketplace. Innovation refers to implementing new ideas, creating dynamic products, and improving existing services. Businesses that innovate create more efficient work processes and have better productivity and performance. Innovation is the key to competitive advantage for a successful organization.
Best Buy’s New Division and Product
Innovation requires new ideas. Best Buy is constantly thinking of ways to keep its customers happy. Best Buy is now reaching out to the customers who want to give back to their community. Best Buy is creating a new division called Best Giving. This division's focus will be on helping others in local communities. The mission statement of Best Giving is “To give peace, hope, and help to local communities through the generosity of our loyal customers”. As part of Best Buy’s undefined mission statement “… a growth company focused on better solving the unmet needs of our customers…” (Strategic Management Insight, 2013), Best Giving is meeting customer needs by altering the rewards card program. The card will now allow customers to give back their earned rewards to a charity of their choice. Customers can choose what percentage (up to all 5%) of their rewards they would like to donate and to whom.
Customer Needs and Competitive Advantage Best Giving focuses on the customers who want to help others. There are very few companies that have the ability to market charity. After all, being in business is about making money. Making money comes from having a competitive advantage. Competitive advantage is the ability to meet the customer needs more efficiently or more effectively than the rivals. What makes a competitive advantage durable are elements of the strategy that give buyers lasting reason to prefer a company’s products or services over those of competitors (Thompson, Peterat, Gamble, & Strickland, III, 2012). Customers who are looking for a way to help those in need will join Best Giving.
Vision and Business Model Vision gives a business objectives, shape, and direction. A good vision statement defines the organization’s purpose, and the uplifting and inspiring words should focus on the goals and aspirations of the company (Mind Tools, 2014). The new vision of Best Giving is “to create a world full of hope, peace, and comfort by supporting local charities in our own communities with the help of our loyal customers.” Best Giving’s idea is to spread hope, one customer at a time. The idea is to become the number one business in making donations to charities. Without a good business model, the vision cannot happen. A business model is “the method by which you will apply your vision while achieving business objectives” (Realized Vision, 2013). Best Buy currently has a business model in effect that seems to be working relatively well for them. Best buy has introduced a matching price policy, which is increasing sales. Best Buy has also introduced the concept of stores-within-stores, increasing the number of customers that come through the door. The third attribute in the business plan is the effectiveness and efficiency of the Geek Squad (Mourdoukoutas, 2013). Best Giving will simply be available to any and all shoppers that hold Best Buy Rewards cards.
Vision, Mission, and Values Alignment Best Buy’s corporate vision is “People. Technology. And the pursuit of happiness.”. Everything Best Buy does begin and ends with people. The products they sell, the services they provide, and the content shared are all tied to the technologies that connect the world. Happy workers equal happy customers. Happy customers equal happy shareholders. Perfection is not necessary, but trying…