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Discussion on: Best Buy Competitive Strategy

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ncitujjwal

Best Buy is the leading provider of electronic goods, product and service or it is tech device and service provider. It has approximate 125000 employees in North America and the annual revenue is approximately $40 billion (WRITER, 2017). Hubert Joly is Chairman and CEO of best buy and he joined best buy in 2012. Best Buy will help customers pursue their passion and enrich their lives with the help of technology. The main goal of Best buy is to address the customer needs in entertainment, communication, productivity, security and health and fashion. They have not only product selling strategy, they have different products and they provides better service after selling the product so that make their customer happy. Mr. Joly believed that, Bust Buy has dual purpose one making the profit and next social responsibility. For social responsibility every years they provide technology training and career path to one million youth in US. The main purpose of training is to generate skillful human resource in US. They have different other strategy

  1. Customer focused strategy/ Customer satisfaction strategy

  2. Market share gains

  3. Revenue growth and improve margin

  4. Employee Training

  5. Store Atmosphere and Placement

In customer focus strategy, first they segment of broad customer base into a handful of specific target. They categorize their target customer into a different group like Tech Geek, Busy Mom, Gadget Enthusiast, and Price Conscious Dad. Based on this they provide the best offer to them.

Best Buys Competitive Strategies

Competitive strategy creates the base in which a business competes in the marketplace. Their reputation is good in market and they are able to fulfil customer needs and attract them and enhance market position by increasing the market share so that it reduces competitive pressure (Shelman, 2017). They have different unique service after selling the product and they have strong customer relation segment. For example, In Tech Geek segment, they should have knowledgeable sales person to deal with Tech Geek. Similarly, in Best Buy Mom segment they provide personal shopping assistants to help Mom for caring her kids. For Budget Conscious dad they provide financial assistants so that they are motivating and convincing to buy a goods. These are the major competitive strategy of Best Buys Company.

Best Buys Differentiation Strategy

The differentiation strategy of Best Buy is an integrated set of actions taken to produce goods and services (at an acceptable cost) that customer perceive as being different in ways that are important to them. Under this strategy Best Buy tries to offer the products which are distinct in the perception of customer. They are best service Provider Company, their product performance is very good and unique product features. They have knowledgeable staffs so that customer can get the complete knowledge about the product and they easily train them for "how to run the electronic goods properly.” The differentiation may be based on product parameters, service back up, promotion and images. The product is differentiated through unique product performance features, and services, adopting new technologies or providing detailed information about the product (Hitt & Ireland, 2011).

References

Gibson, E. (2014). Best practices at Best Buy: a turnaround strategy. JOURNAL OF BUSINESS STRATEGY VOLUME 24, ISSUE 6.

Hitt, M., & Ireland, R. (2011). Strategic Management . USA: South Western Cengage Learning.

Shelman, J. (2017). Best Buy 2020 overview. Blog, corporate.bestbuy.com/best-buy-inv... 18 .

WRITER, S. (2017). Best Buy Investor Day Details ‘Best Buy 2020: Building The New Blue’ Growth Strategy. Best Buy Blog.