In: Business and Management

Submitted By ldkdiva
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Strayer University | Competitive Strategies | Business 580, Contemporary Business, | [Author name]

One of two powerhouses among consumer electronics retailers, Minnesota-based Best Buy Co., Inc., dominates the central U.S. market through a network of more than 280 stores in 32 states. In addition to personal computers and consumer video and audio products, the company offered large and small appliances, ranging from refrigerators to coffeemakers, and entertainment software, including compact discs, audio and video cassettes, and computer software Although the company had overtaken archrival Circuit City in the late 1990s to become the largest consumer electronics retailer in the United States, its victory was marginal and the price reductions needed to capture market share had hurt Best Buy’s profit margins(International Directory of Company Histories 1988) Best Buy’s corporate culture began when Schulze had come to realize that there wasn’t much of a future in a market glutted with vendors, serving a shrinking audience of 15- to 18-year-olds with limited resources.” His first step was to expand Sound of Music’s offerings to include appliances and VCRs. Schulze saw sales quickly climb. In 1982 revenues reached $9.3 million; the following year the company renamed itself Best Buy and firmly oriented itself toward an older, broader, and more affluent customer base. Then, in 1984, Schulze took another major step by introducing the superstore format and quickly capturing 42 percent of the local market (International Directory of Company Histories 1988) Best Buy Co., Inc. (NYSE: BBY) is a global leader in consumer electronics with more than 1,400 locations. Their website boast of having nearly 170,000 employees who are committed to

helping deliver the technology solutions that provide value, enabling access to people,…...

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