Analysis of Best Buy mini case from Kotler's Marketing Management textbook.
This presentation was created by Sarthak Anand, IET Lucknow during a Marketing internship under Prof. Sameer Mathur, IIM Lucknow.
2. About the company
● Started as an audio component
system retailer- Sound of Music
● World’s largest consumer
electronics retailer, with $34.2
bn in sales
● Operates retail stores
throughout US, China, Canada,
Europe & Mexico
12. ● Fewer Stores relative to
competitors (like Walmart)
● Shorter product life cycles
increase training costs
● Decline in operating margins
● Relatively new CEO, Hubert
Joly (2012)
WEAKNESS
13. • Provide more value-added services in store • Increase
global presence as domestic market matures • Move
into digital streaming space by acquisitions or
expansions • Increasing complexity and functionality of
new technology • Products plays into competitive
advantage.
OPPORTUNITIES
● Provide more value-added services in
store
● Increase global presence as domestic
market matures
● Move into digital streaming space by
acquisitions or expansions
● Products plays into competitive
advantage.
14. THREATS
● Availability of Substitutes
○ Electronic e-commerce
retailer (Amazon, eBay)
○ Big Box General
Merchandise Retailers (Wal-
Mart, Costco)
○ Digital Content Distributors
(iTunes, Netflix)
16. • Customer
Centricity
Strategy
• Employee
Knowledge
• Customer data
info
Question 1
Keys to Success Risks
• Rivalry among
existing
competitors
• Risk of
substitute
products or
services
What are the keys
to Best Buy’s
Success? What
are the risks
going forward?
17. • Digital Acquisitions
• Online Customer Service/Learning
• Global Expansion
• Entering New Domains
Question 2
How else can Best
Buy compete
against new
competitors like
Walmart and
online companies?
18. Solution deep-dive
Digital Acquisition
• Differentiates
product portfolio
• Anticipate growth
in online streaming
or gaming market
Online Servicing
• Enhanced
Customer
Experience
• Lowers HR costs
Global Expansion
• Large untapped
Demands
• High Potential
Growth