Best Buy-Case Questions-BUS710 PDF

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Franciscan University of Steubenville

Student Name:

BUS 710 – Marketing Management

Jake Divens

Questions to address in your case report on Best Buy. Note: You may use bulleted lists in your answers, where appropriate, to make answers more concise (but provide a sentence or two to introduce the bullets). 1. How has Best Buy grown its revenues over the years? (25%) Best buy has grown its revenues over the years by adding Geek Squad, Magnolia Hi-Fi, Pacific Sales Kitchen and Bath Centers Inc. These additions to Best Buy have helped them double their stores and expand into Canada and China with a revenue of $31 billion. It’s 75% interest into in Jiangsu Five Star appliance Co which has helped the expansion into China due to it being the 3rd largest chain of electronics and appliances stores.

2. How did Best Buy use technology to enable its growth? (10%) Best Buy used technology to enable its growth by expanding and adding technology to its products and services. Best Buy added technology companies and services over the years which helped enable growth for Best Buy as a whole.

3. What role has acquisitions played in its growth model? Were there specific objectives behind the various acquisitions? (15%) The role of acquisitions played huge in its growth model. Adding Geek Squad and Sales Kitchen and Bath Centers helped expand Best Buy so they could grow. I think there was specific objected behind the acquisitions because look at the acquisition of Jiangsu Five Star appliance Co because that helped the expansion of Best Buy to China. Adding that helped Best Buy create more revenue because they expanded to China.

4. Explain the Customer Centricity Model, including what is needed to support the model. Has it been a success? (25%) The Customer Centricity Model grew out of Best Buy’s EVA analysis of customer segments and its subsequent decision to require all matters concerning capital, inventory mix and format size to

be governed by the profitability of the portfolio of its customers. This instilled an owner/operator mentality In each store manager required financial training.

5. Considering: a) the major growth period (Eras 4 and 5 in the case), and b) the Customer Centricity model, what was unique about Best Buy’s strategy, business model, or merchandise? What was Best Buy’s competitive advantage during these two periods? (25%) Best Buy’s competitive advantage during these two periods was from FY2 to FY3 is the best advantage during these two periods because it had the biggest growth period and biggest gross profit of 3.6% which was Best Buy’s biggest growth period and also the operating income was at its lowest too. This was by far the best competitive advantage during two periods for Best Buy....