Question

Describe in detail the value chain for best buy.

Answer 1

The value chain analysis for best buy is explained sequentially below:

Inbound Logistics:

• Inbound Logistics are the transport, storage, and delivery of a good from a manufacturer to a business
• Best Buy heavily relies on a dedicated fleet to deliver the items to them, the items that they are, thus, going to ship out to their customers
• Best Buy has a dedicated team that helps convert incoming freight from pre-paid to collect terms. They essentially pay and bear the freight charges.
• A majority of their products are imported from Asia to one of the two consolidation centers on the West Coast.
• From there, the goods are sorted out and placed into certain distribution centers depending on what type of product they area.
• Some manufacturers allow Best Buy to service their products under Best Buy’s own warranty, and they will reimburse them of the expense to repair the product If a manufacturer doesn’t give them permission to do so, then the customer must directly go through the manufacturer. This is one of the most important offerings which bring satisfaction and ultimately loyalty to the customers.
• The customer can buy the product at lowest price irrespective of the number of products, for example, even if the customer buys one or two TV then also he will get it at best price.
• Assembly of products and the Showroom formatting also allows the Best Buy to give value to the customers.
• They have a newly implemented hybrid model for Outbound Logistics, they move the item from distribution center to the individual store to the customer.
• Potential customers are regularly informed about the promotional offers and also promotes about the protection coverage of the Best Buy to the customers.
• Extended Warranty and in-house technical support gives additional value to the customers
• Availability of the store globally