Shopping has developed into a part of everyday life for most Americans. Large retail outlets line major roads of American towns and cities, enticing customers with attention grabbing advertisements for items that vary from everyday necessities, to flashy toys that promise hours of entertainment. Although many stores carry these entertainment products, like TV’s, computers, gaming systems, and mp3 players, there is certainly one company that stands higher than the rest as the “dominant technology and entertainment retailer” (taitsubler.com) in the United States – Best Buy.
Having a gross income well over $50 Billion in fiscal year 2011, along with a net income of $1.227 billion, Best Buy Co., Inc holds one of the largest market shares inside the electronic products industry, since they should. Best Buy, founded in 1966, is electronics merchant, whose stores are chock filled with expensive electrical toys and tools. Stores are split into departments, each department specializing in a form of technology. Each store has a Home Theatre, Computer/Tablet, MP3/iPod, Gaming, Digital Imaging, Car Electronics, Music/Movies, Appliances, and Mobile (cellular phone) department, in which products along with their accessories are saved to display.
Best Buy, striving as a destination look for customers, also provides services to go along with their products. Through partnerships with companies like Comcast, Dish Network, Time Warner, and Clear Wireless, customers can leave the what time does Best Buy open with connections to the net, cable or dish TV, and phone services. Through the acquisition of Geek Squad in 2002, Best Buy is additionally in a position to offer repair and installation services on a lot of its wares, including TV’s, computers, and appliances. Actually, Best Buy now brands all its warranties and installation services with the Geek Squad name, and encourages customers to utilize their in-store service counters, where they can talk face to face having a Geek Squad agent about the issues they are experiencing making use of their technology.
Geek Squad is not the sole brand to be owned by Best Buy. Product brands like Dynex, Insignia, and Rocketfish are properties of Best Buy. These brands are mainly manufacturers of product accessories such as wireless mice (for computers), speakers, cables and cases, but both Dynex and Insignia are manufacturers of larger products, like TV’s. Having “house brands” is helpful for that company simply because they lead to higher margins on those products, and finest Buy has greater power over product inventory levels and greater flexibility in the roll-out of new products to match with market trends. For instance, Best Buy managed to reply to the discharge from the IPad by creating several IPad accessories, including cases and stands, through its brand Rocketfish. Not just did consumers benefit with a greater assortment of accessories to select from, but in addition from the less expensive costs that arose due to competition inside the accessories market.
Other brands associated with Best Buy are Magnolia, a branch of the Home Theater department, in which high end TV’s and speakers are offered, for those customers that desire above average performance using their TV’s and speaker set-ups, and Napster, which, until earlier this coming year, was an attempt by Best Buy to get into the tunes streaming and download market. (Napster was recently sold to Rhapsody for an undisclosed amount.)
Best Buy has experienced increasing difficulty with domestic expansion also, facing stiff competition using their company retailers, including Wal-Mart and Target, that have recently put forth efforts to grow their electronics selections at increasingly huge discounts, and in addition from online stores like Amazon.com and Newegg.com, who have the ability to offer large selections exceedingly affordable prices because of their low overhead. Best Buy stores have been called “Amazon’s showcase” by consumers who make use of the blue and yellow retailer as a ueukql to see and learn about products up close before ordering them from another company online.
Ex Best Buy CEO, Brian Dunn, however, comes with an optimistic look at his company’s technique for competing with these others. Bestbuy.com is Best Buy’s answer to online competitors, and contains been called “extremely successful” by Dunn. It also posseses an edge over Amazon and Newegg; the products ordered from Bestbuy.com could be picked up in store, which eliminates the price of shipping. 40% of online orders are acquired available, based on the article Best Buy Gets Squeezed which suggests that consumers do enjoy having this option offered to them. Furthermore, items ordered online may be returned to traditional locations, which consumers find convenient and reassuring. “In the future, physical stores alone will not be enough. Digital alone will never be enough. How they get together is exactly what really matters,” says Dunn (Best Buy Struggles with Global Ambitions).