In doing business analysis, we follow the steps of the strategic management process. You have any and all of the following models and frameworks at your disposal:
Perform an external environmental analysis of the:
· Industry environment (Porter’s five forces).
· Competitive environment.
Perform an internal analysis of the firm using the resource-based view:
· What are the firm’s resources (Tangible and Intangible) , capabilities, and core competencies?
· Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources (VRIO framework analysis)?
· What is the firm’s value chain?
Analyze the firm’s cu
ent business-level and corporate-level strategies:
· Business-level strategy (product market positioning).
· Who—which customer segments will we serve?
· What customer needs, wishes, and desires will we satisfy?
· Why do we want to satisfy them?
· How will we satisfy our customers’ needs?
· Corporate-level strategy (diversification). Innovation and entrepreneurship
· How are these strategies being implemented?
· Is the company using a differentiation strategy or cost leadership strategy? Is the company in a blue ocean Strategy? (Important)
Analyze the firm’s performance:
· Use both financial and market-based measures.
· How does the firm compare to its competitors as well as the industry average?
· What trends are evident over the past three to five years?
· Consider the perspectives of multiple stakeholders (internal and external).
· Does the firm possess a competitive advantage? If so, can it be sustained?
5. identifying the issue or problems and their causes.
6. Make your recommendation based on the findings from your analysis
Specify a clear recommendation based on models used above and analysis of the company’s cu
What are the issues best buy is facing cu
ently and what causes them to happen
we discussed the Internet as a disruptive innovation that has facilitated online retailing. It also, however, has presented challenges to
ick-and-mortar retailers. How might retailers such as best buy need to change their in-store experience in order to continue to attract a flow of customers into their stores to expand sales using direct selling and store displays of the actual merchandise? If the Internet continues to grow and sales of
ick-and-mortar retailers decline, how might the retailers attract, train, and retain high-quality employees if the industry is perceived as in decline?
Business Case Analysis Choice Report
Best Buy is the leading retailer of electronic products, services and solutions. The company is involved in running a
ick and mortar stores which is associated with high overhead costs. E-commerce competitors such as Amazon are able to provide a wide selection of electronic products at a cheaper price and shorter delivery times, which ultimately affect Best Buy’s performance. Also, customers are realizing that they don’t need intermediaries when they can buy the desired product directly from the store where there are trained experts who can accommodate your specific needs.
Best Buy are losing on potential revenue due to low inventory levels, customers have been reporting frustration with the service saying items ordered through their omnichannel were often not available in store for pick up. Additionally, a main source of revenue is game sales and customers are downloading games online rather than purchasing CDs in-store while moving towards the digital era of streaming services for music and film too. Best Buy are dependent on their suppliers for innovation and demand, the company needs to move beyond that to attract customers and provide more value.