According to the case, in 2012 Best Buy was facing a number of competitive challenges to which they had failed to respond effectively, can you mention those challenges?
The challenges faced by the Best Buy are followed.
- The lack of capacity to manage their international business.
- Growth of market share of Walmart
- Growth of online business specially amazon
- Due to competitor’s market share was on the fall
- Customers started comparing prices of amazon and buy.com with the company products
- Lack of internal management professionalism
- Company did not adopt new system to going online.
Did you notice the key concepts the case discussed?
In this case study the concepts were discussed very professionally and smoothly. This case study shows that how a company get out of the troubles or from the different stress during the last decade. The company has faced the competition with amazon and adopted different tactics for avoiding any financial distress. So over all in this case study guidelines or strategies are given for understanding different prospects of the business.
What were the strategic challenges facing Best Buy in 2012? why was the company finding them hard to respond to?
The year 2012 was one of the worst year in the history of company. There were number of incidents took place which badly affected the company. In 2012 the share price of the company in market was fluctuated which resulted in 10 % at 18.19. The downfall or fluctuation of the price was due to newly appointed inefficient and lack of experience of CEO Hubert Joly. Earlier Brian Dunn was the CEO and he closed down 50 big box stores in the America in March which results decrease in cost around $800 million. Mr. Brian Dunn stepdown due to relationship with a female employee. The management of the company was also not efficient and found poor management.
What did Joly see as Best Buy’s key strengths and weaknesses? Do you agree with Joly’s initial diagnosis?
According to Joly the best strengths of the Best Buys’ are followed.
- Strong leadership in North-American Market
- Continues higher growth
- Large number of customers
- Large number of Customers are loyal to company
- Best-selling strategy in the region
- Competitive Pricing and after sale services
According to Joly the weakness of the Best Buys’ is followed.
- Limited suppliers of electronics products.
- Inefficient to look after the international market
- Faced number of lawsuits
- Too much relying on only a few suppliers
The joy had rightly diagnoses the company. I am totally agreeing with Joly, the changes made was good enough for the company.
Joly was saying that (Many of these problems are the results of our own making, which is in itself good news, meaning there is nothing structurally wrong with our markets). Do you agree with this statement or not?
I am agreeing with the statement given by Joly. All the internal unprofessionalism approach of the management causes the problems for the company. As for market is concerned, its composed of many factors and stakeholders. The trend of the market changed when customers change their perceptions and approach towards buying of products. Customer is considered a king in the market.
Do the Renew Blue Goals address the issues? Which initiatives in Renew Blue made a strategic difference?
The overall impact of the renew blue was achieved as for their goals are conferenced. I believe, the leadership was transformed along with motivated employees in order to get the extraordinary results. This extraordinary results make the difference due to online services that other retailers are not provided or offering. The renew blue was basically composed of five points which makes the differences.
What advantages does “multi-channel” retailing offer Best Buy?
The multi-channel step worked in the best interest of the company. Due to multi-channel initiative, the total sales was increased. This initiative increases worker’s productivity along with better data collections. Due to this initiative huge number of customers/consumers visited the bestbuy.com in the last quarter. The overall impact due to multi-channel initiative increases around 20 % revenue of the company comparatively to last year.
Has Joly done enough? How well is Best Buy doing compared to Amazon in 2017? Is building the New Blue a game-change.
The strategies adopted by the Joly’s worked in the best interest of the company. Due to the Joly’s strategies, the company has achieved financial targets in the fiscal year 2021. Joly took different steps/ initiative which were helpful in order to get the positive results. Joly’s adopted a strategy in which he minimizes the difference in online and his own products prices which results that the customers stopped matching the prices available online of different competitors. Apart from this strategy company entered into a partnership with technologies companies in order to offer highly innovative products in the market. This leads to company a competitive edge over competitors. Due to both these steps, the turnover of the company was increases along with customer’s and their trust as well. The company stock which is register on the NYSE as BBY get stronger and market value was 28 billion dollars on 10th September. The total gained on the BBY was 113% comparatively to AMZN which was 70 %. The overall market share of the BBY in the United states of America is 15 % which is high. Though company has lost their market share due to online business organizations. The amazon has made to Best Buy or force to Best Buy for entering into online sales and services. Due to online services, company has generated 25 % of its total revenue.
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