Michael George
BUSA 4185
External Environment Analysis for Best Buy
27 Feb. 2017
This External Analysis will look at Best Buy and provide a complete external scan to provide the tools necessary to identify Best Buys strengths and weaknesses. Additionally, this analysis will determine the companies competitive positioning and its chances of growth. Best Buy is a specialty retailer that specializes in consumer electronics. Its financial hub is in the United States; however, Best Buy does have locations in Mexico, Turkey, and The United Kingdom etc. Currently, Best Buy is one of Fortune 1000 top companies and is one of the primary retailers of electronic goods in the United States.
Task Environment: Over the last few years
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And in correlation with those groups Best Buy is having to deal with pressure from environmental watchdogs and the EPA who have created strict guidelines on environmental laws. Recently laws were set in place requiring large corporations to decrease their carbon footprint. Best Buy got caught up in a “scandal” where they were blamed for unethical deforestation in Canada. However, since that incident Best buy has taken steps and launched a program called Greener Together to increase energy efficacy in its products and to reduce their waste by using more recyclable goods. They even started collecting people’s old electronics that they were trashing and used those for new …show more content…
Thus, providing people with the very best product the present day can offer.
Expansion of Product lines: By continuing to improve name brands and well known products Best Buy can ensure customer retention by carrying new and update products, such as new apple iPhone.
Acquisition of Rivals: By consuming their rivals, Best Buy keeps the threat of other companies low.
Global Expansion: Reaching out to new markets and potential customers can help secure Best Buy as a global power house of technology sales.
Online growth: With the constant push towards less brick and mortar companies and more online stores Best buy can further reach more customers by appealing to their needs.
Threats:
Internet based and brick and mortar competitors: Best buy has low competition as far as these are concerned due to their domination of the market.
Economic downturn: Best buy should continue to take steps in the case of economic slowdown to ensure the companies stability, such as what they did by lowering their number of employees.
Overview and
The threat of substitution is high. With physical retailers like Walmart and Target to online retailers like Amazon are giving GameStop a run for their money. Video games are hard to differentiate so this forces GameStop to try and reinvent their services to compete against other retailers. The company should look at other retailers such as Best Buy and Amazon to see how they are retaining and attracting new customers to their platform. One of the few advantages that GameStop has is offering an exclusive limited edition of video game merchandise that can only be sold at their participating stores.
The business and marketing world is a very risky and difficult career. You don’t know what decisions can drastically change your entire company. I will be talking about the fact that Gamestop can possibly go down the same hill as BlockBuster. Now a days, everyone is always talking about the new video games and how they are willing to wait outside of the store until the game gets released. The good thing is that with all of the new technology, they won’t have to suffer the long waits.
The top retailers in the electronics and appliance stores market included: 1. Best Buy (40.2%); 2. Apple (4.7%); BCE (3.7%) 4. GameStop (3.6%). (Statistics Canada, 2013) (https://www.ic.gc.ca/eic/site/oca-bc.nsf/vwapj/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf/%24file/CTU-2013_Q2_Canadas_Changing_Retail_Market-eng.pdf)
“To be a leading environmentally responsible retailer through focused resource stewardship by our associates and venders” (Kohl's Corporation, 2016). Many green initiatives have been made to support this mission, including recycled content gift boxes, restroom papers, merchandise bags, office supplies and an outstanding number of 700 Energy Star labeled stores. (Kohl's Corporation,
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