abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Best Buy Co : Best Buy Co., Inc. (NYSE: BBY) is a specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada, China, Turkey and the United Kingdom.[2] The company's subsidiaries include Geek Squad, Magnolia Audio Video, Pacific Sales, and, in Canada operates under both the Best Buy and Future Shop label. Together these operate more than 1,150 stores in the United States, Puerto Rico, Canada, China,[3] Mexico, and Turkey. In addition, the company has rolled out over 100 Best Buy Express Automated Retail stores or "ZoomShops", operated by Zoom Systems, in airports and malls around the U.S. [4] The company's corporate headquarters are located in Richfield, Minnesota.
Best Buy was named "Company of the Year" by Forbes magazine in 2004,"Specialty Retailer of the Decade" by Discount Store News in 2001,[6] ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving),[7] and made Fortune magazine's List of Most Admired Companies in 2006.
On March 9, 2009, Best Buy became the primary electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business. Fry's Electronics remains a major competitor in the western United States. Many locations feature in-store pickup, which can be arranged through the company's website.
Strengths
* Wide portfolio of store brands & regional banners
* National presence & supply chain capabilities
* Knowledge of distribution and logistics from wholesale business
* Local market familiarity (Albertsons in West Coast, Jewel in Chicago, Shaw's in New England)
* Experience operating a decentralized structure
* Willingness to tolerate multiple solutions and approaches
Weaknesses
* Store operations labor expertise in short supply
* Integration of retail systems
* Divisional alignment
* Marketing expertise underdeveloped
* Lacks shopper data for local insights or targeted marketing programs
Opportunities
* Leverage acquisition of Albertsons
* Development of national banners
* Focus on higher-margin retail business & other departments (i.e., organics)
* Efficiencies from centralizing operations
* National supply chain
* Leverage loyalty card data for shopper insights
Threats
* Highly leveraged
* Wal-Mart Supercenter competition in key markets
* Too dependent on local management knowledge - no systems in place
* Risks losing customers from wholesale business
* Standardizing its stores while it centralizes operations
Best Buy was named "Company of the Year" by Forbes magazine in 2004,"Specialty Retailer of the Decade" by Discount Store News in 2001,[6] ranked in the Top 10 of "America's Most Generous Corporations" by Forbes magazine in 2005 (based on 2004 giving),[7] and made Fortune magazine's List of Most Admired Companies in 2006.
On March 9, 2009, Best Buy became the primary electronics retail store (online and bricks and mortar) in the eastern United States, after smaller rival Circuit City went out of business. Fry's Electronics remains a major competitor in the western United States. Many locations feature in-store pickup, which can be arranged through the company's website.
Strengths
* Wide portfolio of store brands & regional banners
* National presence & supply chain capabilities
* Knowledge of distribution and logistics from wholesale business
* Local market familiarity (Albertsons in West Coast, Jewel in Chicago, Shaw's in New England)
* Experience operating a decentralized structure
* Willingness to tolerate multiple solutions and approaches
Weaknesses
* Store operations labor expertise in short supply
* Integration of retail systems
* Divisional alignment
* Marketing expertise underdeveloped
* Lacks shopper data for local insights or targeted marketing programs
Opportunities
* Leverage acquisition of Albertsons
* Development of national banners
* Focus on higher-margin retail business & other departments (i.e., organics)
* Efficiencies from centralizing operations
* National supply chain
* Leverage loyalty card data for shopper insights
Threats
* Highly leveraged
* Wal-Mart Supercenter competition in key markets
* Too dependent on local management knowledge - no systems in place
* Risks losing customers from wholesale business
* Standardizing its stores while it centralizes operations
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