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Best Buy Competitive Strategy
“Best Buy” competes aggressively on price with rivals such as Costco Wholesale, Sam’s Club, Wal-Mart and Target but is also know by consumers for its first-rate customer service.
How do you characterize Best Buy’s competitive strategy? Should it be classified as a low-cost provider, differentiation or best-cost strategy? Please explain and provide support for your answers.
Helpful Tips -The Five Generic Competitive Strategies.doc
Best Buy Co. was established in the year 1966 and the Headquarter of the company is situated in Richfield, Minnesota. Earlier, it was known as the name of Sound of Music, Inc. In the year 1983, its name was changed to Best Buy (Best Buy Co., Inc., 2008). Best Buy Inc. is one of the leading companies in retail industry. The main rivals of the company are Costco Wholesale, Sam’s Club, Wal-Mart and Target. The competition in this industry is very tough, so in order to maintain its leading position, Best Buy is competing with the competitors in an aggressive way on price of the products and services (Connected World – Fiscal 2008 Annual Report – Best Buy Co., Inc., 2008).
This company together with its number of stores works as a largest retailer of the customers for electronic, entertainment software, Appliances, Services and Home office, etc. in United States and Canada (Best Buy Co., Inc., 2008). The company is also known by consumers for its first-rate customer service.
In this highly competitive and changing environment, Best Buy has some strategies that provide competitive advantage to this company. The main competitive strategy of Best buy is its customer services (The New York Times, 2009). The pricing …
The expert characterizes Best Buy’s competitive strategies.
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