Best Buy strategies Student’s Name Institutional Affiliation Course Number Instructor Due Date executive summary best buy co

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Best Buy strategies

Student’s Name

Institutional Affiliation

Course Number

Instructor

Due Date

executive summary

best buy co. It is a multinational based in America that retails consumer electronics. The company operates in different countries worldwide, such as Canada, China, Europe, and others. The company offers video games, software, mobile phones, music, car stereos, digital cameras, and home appliances. The company has been doing well in the market and has been ranked the best retailer several times. This is because of the marketing strategy adopted by the business that ensures that they reach large markets and offer differentiated services. This paper shows the marketing strategy and how the marketing plan can be redesigned to ensure a significant market share.

The company uses different marketing plans to achieve its competencies, the brand is first analyzed, and a framework is created to carry out its plan. Pricing, product innovation promotion, and planning are critical for developing strategies used by the company. Using these strategies, the company can adequately position itself and reach its targeted audience. The marketing plan also enables the company to compete effectively because a plan gives direction to the company (Hickle, 2017). The company targets its market using good quality and affordable products. The electronics offered by the company are affordable, and the targeted segment is demographics from the age of 15 to 60 years. By offering quality products at an affordable price, the company attracts a significant market share. The marketing plan includes using digital advertising services such as social media platforms combined with traditional strategies such as billboards, signs, and flyers. Social media platforms have become powerful marketing platforms due to the significant traffic of consumers found on these platforms. Therefore a company that utilizes these platforms well is likely to succeed due to the large following through these platforms.

Due to the pandemic, the company was affected and even closed down its physical stores carrying business online and meeting with customers at home. Therefore this leads to the business redesigning its strategy to overcome the challenges of the pandemic and ensure it reopens its stores. Generally, the covid 19 pandemic changed the marketing strategies for many companies and had many companies turn to online marketing. Best Buy was not left behind as it redesigned its marketing strategy and increased its activities on the eCommerce platforms. Online sales increased as the business advertised using social media platforms and organized pick-up points for its customers to know where to pick up their goods (Mondal et al., 2020). This strategy has turned out to be effective because it is less costly and enables customers to have the best shopping experience. The business cuts many costs such as storage, workers, and other costs. In addition, the company also adopted strategies that allow them to be more involved with customer needs. It is essential to be more customer-based because it increases the company's profitability and value. Therefore the company began to listen more to the customer needs either from reviews after selling their products or through social media, which is an excellent way to get back reviews from the customers. This strategy has increased sales because customers' needs are easily reached through the quality products offered. The shopping experience offered to the customers has also improved, which has led to the attraction of more new customers. Therefore the company has been focusing on developing online sales and sales through its physical stores to improve the value of their firm by improving its competitive advantage and profitability.

Organizational overview

Best Buy company was founded in 1966 by Richard m. Schulze and his business partner as a music sound in St. Pauls, Minnesota. He financed it with a mortgage from his family's home and personal savings. The company then was known as the sound of music, and in 1967 it acquired Kencraft HI-FI company and started making around $58000 per year. By 1978 the company was operating nine stores in Minnesota. It was renamed Best Buys in 1983 with $10 million annual sales and seven stores, and also it expanded its products and began offering home appliances. By 1985 the company was taken public and listed in the New York exchange. The company has been employing strategies to survive in the competitive environment. In 1988 it got into a war with Detroit-based chain store for appliances, and Schulze attempted to sell the company to Circuit city, who rejected his $30 million offer (Lehtisaari et al., 2018). Therefore, the business redesigned its operational strategies, which firstly replaced the dimly lit stores with bright ones, placed stocks on the store's floors, and did away with commissioned salespeople. Doing away with commissioned salespersons improved the shopping experience by relaxing the high pressure usually exerted on the commissioned sellers. Although many suppliers such as Sony, Whirlpool, and Maytag pulled out because they believed that sellers wouldn't push their products, the Best Buy revenue increased, and the suppliers later returned.

By 1994 the company had annual revenue sales amounting to $1 billion, and in 2000 it formed an independent music label known as Redline Entertainment. It began acquiring other businesses such as Magnolia HI-FI, Musicland stores corporation, British Columbia, and a geek squad based in Minneapolis. In 2003 the company opened its first global sourcing office in shanghai and surpassed the 600 store mark. In 2004 the company started employing online resources and hired Virtucom Group to revamp its websites and handle the business's online content. The company expanded to Europe and used acquiring other businesses to operate. By acquiring other businesses, the company can reach new markets and enjoy the competencies of the acquired company to expand its operations. The company also utilizes its social media resources to know the customer needs and meet them. They focus on the customer's online needs and the feedback offered by the customers to come up with strategies for meeting their needs. The company comes up with a strategy every time it hits a challenge that might affect its operations. Even if they fail, its management always comes up with strategies such as closing up stores in the area where they are not well-performing to restrategize. Acquisitions are a commonly used strategy because it allows the company to gain new strategies from the acquired business and increase its market share by reaching new markets.