Growth Strategies Case Study

Growth Strategies of Best Buy

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Abstract:
Best Buy was founded by Richard M. Schulze as an audio retail store in 1966 and later on moved into consumer electronics. Best Buy's vision was to 'make life fun and easy' for its customers by providing comprehensive solutions to their entertainment and technology needs. In its 37-years of existence, the company faced numerous challenges but managed to bounce back from every difficult situation. Throughout, the corner stone of the company's strategy had been its various 'Concept Stores', merchandising mix and technology initiatives that improved the shopping experience for its customers and differentiated the company from its main competitor, Circuit City. In 2003, Best Buy was the No 1 retailer of consumer electronics in the US and was ranked 91st on the Fortune 500 list with revenues of $20.9 billion.

Pedagogical Objectives:

• To highlight the growth of Best Buy since its inception in 1966
• To discuss how Best Buy had successfully leveraged on its differentiating strategies to become the No.1 consumer electronics retailer in the US.

Keywords : Best Buy; Electronics retailing in the US; Consumer electronics and appliances; Circuit City; Growth Strategies Case Study; Sears; Digital electronics; Andersen Consulting; Entertainment software; Data mining; Data warehousing; Concept stores of Best Buy; Rhapsody; Brad Anderson; Richard Schulze; Superstores

Contents : 
Layingthe Foundations
The growth Engine
Financial Highlights Fiscal
‘Musicland’and‘Magnoliahi-Fi’
The Music Land Fiasco
Tomorrow’s Best Buy