Shopping has developed into a part of everyday life for many Americans. Large retail stores line major roads of American towns and cities, enticing buyers with compelling advertisements for products which vary from everyday necessities, to flashy toys which promise hours of entertainment. Even though many stores carry these entertainment products, like TV’s, computers, gaming systems, and audio players, there is certainly one company that stands higher than the rest as the “dominant technology and entertainment retailer” (taitsubler.com) in america – Best Buy.
Using a gross income of more than $50 Billion in fiscal year 2011, along with a net income of $1.227 billion, Best Buy Co., Inc holds among the largest market shares within the electronic products industry, as they should. Best Buy, founded in 1966, is electronics merchant, whose stores are chock full of expensive electrical toys and tools. Stores are split into departments, each department specializing in a type of technology. Each store includes a Home Theatre, Computer/Tablet, MP3/iPod, Gaming, Digital Imaging, Car Electronics, Music/Movies, Appliances, and Mobile (cell phone) department, by which products and their accessories are saved to display.
Best Buy, striving as a one stop go shopping for customers, offers services to go together with their products. Through partnerships with companies such as Comcast, Dish Network, Time Warner, and Clear Wireless, customers can leave the https://www.storeholidayhours.org/best-buy-holiday-hours-open-closed-today with connections to the net, cable or dish TV, and phone services. Through the acquisition of Geek Squad in 2002, Best Buy is also in a position to offer repair and installation services on most of its wares, including TV’s, computers, and appliances. Actually, Best Buy now brands all of its warranties and installation services using the Geek Squad name, and encourages customers to make use of their in-store service counters, where they are able to talk face to face having a Geek Squad agent concerning the issues that they are experiencing making use of their technology.
Geek Squad will not be the only brand to get owned by Best Buy. Product brands such as Dynex, Insignia, and Rocketfish are owned by Best Buy. These brands are mainly manufacturers of product accessories like wireless mice (for computers), speakers, cables and cases, but both Dynex and Insignia are manufacturers of larger products, like TV’s. Having “house brands” is effective for the company because they result in higher margins on those products, and finest Buy has greater control of product inventory levels and greater flexibility in the development of new releases to suit with market trends. For example, Best Buy could respond to the production of the IPad by creating several IPad accessories, including cases and stands, through its brand Rocketfish. Not just did consumers benefit with a greater range of accessories to choose from, but additionally from the less expensive costs that arose as a result of competition within the accessories market.
Other brands connected with Best Buy are Magnolia, a branch of the Home Theater department, by which high end TV’s and speakers can be bought, for those customers that desire above average performance off their TV’s and speaker set-ups, and Napster, which, until earlier this year, was an effort by Best Buy to get in the music streaming and download market. (Napster was recently sold to Rhapsody for an undisclosed amount.)
Best Buy has already established increasing difficulty with domestic expansion as well, facing stiff competition using their company retailers, such as Wal-Mart and Target, who may have recently put forth efforts to expand their electronics selections at increasingly competitive prices, and also from internet retailers including Amazon.com and Newegg.com, who are able to offer large selections exceedingly less expensive costs due to their low overhead. Best Buy stores have already been called “Amazon’s showcase” by consumers who use the blue and yellow retailer as being a ueukql to see and find out about products in close proximity before ordering them from another company online.
Ex Best Buy CEO, Brian Dunn, however, has an optimistic look at his company’s strategy for rivaling these other businesses. Bestbuy.com is most beneficial Buy’s solution to online competitors, and it has been called “extremely successful” by Dunn. In addition, it posseses an edge over Amazon and Newegg; the products ordered from Bestbuy.com may be found available, which eliminates the expense of shipping. 40% of online orders are acquired available, according to the article Best Buy Gets Squeezed which suggests that consumers do enjoy possessing this option available to them. Furthermore, items ordered online could be returned to physical locations, which consumers find convenient and reassuring. “In the future, physical stores alone is definitely not enough. Digital alone will never be enough. How they come together is what really matters,” says Dunn (Best Buy Struggles with Global Ambitions).