Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

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: 1. Perform an external environmental...

1 answer below »
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:
    1.
    Perform an external environmental analysis of the:
· Industry environment (Porter’s five forces).
· Competitive environment.
    2.
    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?
    3.
    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)
    4.
    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
ent situation
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.
Answered Same Day Mar 24, 2020

Solution

Aarti J answered on Mar 27 2020
140 Votes
Best Buy: Strategic Management
Course Name
Course Date
Best Buy
Company Introduction
Best Buy Company is one of the multi-national retailer company of different electronic products. The company offers the products under different categories which includes the consumer electronics, computing and mobile applications, home office products, entertainment products and several services which includes the designing, set-up, technical support, delivery and installation of the appliances which has been purchased by the customers. There are different
ands which the company sells to its customers. Some of the
ands which are marketed and sold by the company includes Best Buy, Platinum, Future Shop, Magnolia, Geek Squad, Best Buy Mobile, Yellow Tag, Dynex, Pacific Sales, Insignia, Rocketfish, Modal and My Best Buy. The company has its operation sin United States, Canada, Mexico and China. (Annual report, 2017)
External environment analysis
Best Buy can be said to be operating in an oligopoly market where the company faces a stiff competition from Wal-Mart and different online competitors which includes Dell and Amazon.
Porter’s five force model
Intensity of rivalry among competitors:
The competition among the large electronic manufacturers and retailers is quite high. The company faces stiff competition from the private as well as public retailers like Walmart, target and Costco. These are the companies which are considered as the discount stores and the company faces stiff competition from these stores. With the emergence of online selling and purchasing, the company also faces stiff competition from the online retailers like Amazon and Ebay. The intensity of rivalry is quite high as there is no switching cost associated in this industry. The products offered by the company are also not differentiated with which the customers can easily switch to other competitors on the basis of pricing and delivery of the product. Thus the intensity of rivalry among competitors is high and the company’s survival is highly dependent on the inventory turnover, after sales services and pricing of the products. (Kenney, Kanfar, 2011)
Threat of New entrant:
The threat of new entrant is quite low, as the industry is already established and the new entrant has to beat the existing competition to survive in the market. The capital requirement for the new entrant is not much, so the threat of entry is low but the potential pool of entrant can be considered high because of the online sales.
Threat of substitute products:
The threat of the substitute is quite low, as there are only few substitutes that are available for different consumer products.
Bargaining power of buyers:
The bargaining power of buyers is quite low, as the purchase volume of the products is low and the cost of the products bought by the consumer is usually high, which results is low bargaining power of the buyers.
Bargaining power of the suppliers:
The bargaining power of the suppliers is high as there are limited number of suppliers who can fulfil the demand of the consumers. Some of the major suppliers includes Sony, Samsung, LG, Hitachi and other companies. All these companies has specialized technology and specializes in their products in one means or the other. There is high bargaining power because of the capital, technology and the competition that the suppliers face. Some aspects which can lower their bargaining power includes the increase in sales that the companies expect from the online retailers.
Competitive environment
The competitive environment of Best Buy is quite high because of...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here