Best Buy Co. Inc.: Sustainable Customer Centricity Model? 1612 BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL?CASE # 3Best Buy Co. Inc.: Sustainable Customer Centricity Model?MGT403 Strategic ManagementPrepared forTanvir H DeWanCoordinator of College of BusinessIUBATPrepared by
Shahriar Rawshon (Group Leader)
Suchona Akter Swarna
Shahara Akter Eva
Md. Al Amin
Section: BInternational University of Business Agriculture and TechnologyDate of Submission: 29th May, 2012Current Situation:Best ...view middle of the document...
Vision:"People, Technology, and the pursuit of happiness" This is the corporate vision that Best Buy strives to achieve.HistoryBest Buy was originally known as Sound of Music. Incorporated in 1966, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line.Expansion Through Acquisitions In 2000, Best Buy began a series of acquisitions to expand its offerings and enter international markets:Major products and servicesBest Buy is consumer electronics and appliances retailing company engaged in retailing consumer electronics, home-office products, entertainment software and related services.The company's products and services are categorized under the following different segments:Computers and peripheralsHome Audio and VideoPersonal audioPhoto and imagingConsumer electronicsEntertainment softwareAppliancesCurrent PerformanceCorporate GovernanceBoard of Directors:Key Executives - Best Buy Co Inc. (BBY)Other Board Members - Best Buy Co Inc. (BBY)Top ManagementExternal EnvironmentGeneral EnvironmentBest Buy opened the first Magnolia Home Theater. They also opened its first Canadian Store the company purchased Musicland, a mall-centered music retailer throughout the United States. It's acquired Geek Squad, a computer repair service provider to help develop a technological support system for customers. It acquired Pacific Sales Kitchen and Bath Centers Inc. to develop a new customer base: builders and remodelers.Best Buy entered the international market with acquisition of future shop Ltd. leading consumer electronics. Best Buy acquired Magnolia Hi-Fi Inc., a high-end retailer of audio and video products and services, which became Magnolia Audio Video in 2004.The same year, Best Buy also acquired a 75% stake in Jiangsu Five Star Appliance Co., Ltd, a China-based appliance and consumer electronics retailer.It enabled the company to access the Chinese retail market and led to the opening of the first Best Buy China store on January 26, 2007.Best Buy Mobile was developed after acquiring a 50% share in Best Buy Europe (with 2,414 stores) from the Car phone Warehouse;It intended to open small-store formats across Europe in 2011.Industrial EnvironmentDespite the negative impact the financial crisis had on economies worldwide, in 2008 the consumer electronics industry managed to grow to a record high of US$694 billion in sales-a nearly 14% increase over 2007. In years immediately prior, the growth rate was similar:14% in 2007 and17% in 2006.This momentum, however, did not last.Sales dropped 2% in 2009, the first decline in 20 years for the electronics giant.A few product segments, including televisions, gaming, mobile phones, and Blu-ray players, drove sales for the company. Television sales, specifically LCD units, which accounted for 77% of total television sales, were the main driver for Best Buy, as this segment alone ac- counted...