Business Case Studies, Competitive Strategies Case Study, Best Buy,Segmentation

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Competitive Strategies Case Study

Case Title:

Best Buy: Growth through Segmentation

Publication Year : 2007

Authors: Philip Anil Kumar, Mridu Verma

Industry: Retailing


Case Code: COM0205P

Teaching Note: Available

Structured Assignment: Not Available

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Best Buy is a $30-billion-a-year consumer electronics superstore with more than 930 outlets across US and Canada. Its warehouse-style superstores with yellow tag logo offer branded consumer products like televisions, DVD players, home audio, car audio, computers, cameras, music, movies, software, games and personal computers. Since the 1990s, Best Buy followed ‘the bigger the better’ strategy which helped it grow but with increasing competition the company felt the need to consolidate its position. This case study discusses Best Buy’s strategy to overcome competition.

Pedagogical Objectives:

  • The case evaluates the strategies adopted by Best Buy, to segment its target customers to overcome the increasing competition in the consumer electronics market.

Keywords : US retail industry; Future shop; Magnolia Audio vedio; Geek squad; Accenture; Musicland; Customer centricity model; Reward zone; Competitive Strategies Case Study; RFID tag; Studio D; Escape; Ask A Blue Shirt programme

Contents : 
Retail Industry in the US
Best Buy’s Problems
Customer Centricity model
Best Buy’s business model
Market growth and operating income

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