Question

Research the Best Buy current situation. Based upon the information provided in the case and what you find out from your research, what would you recommend Best Buy do? What would a CLV perspective suggest they do? How well do you think Best Buy will do in this market? Explain your rationale.

Answer 1

Research the Best Buy current situation. Based upon the information provided in the case and what you find out from your research, what would you recommend Best Buy do?

Best Buy is one of the most leading multinational electronic retailer which is established in the year 1966, headquarter Richfield,Minnesota ,United States.

Which is founded by Richard and James as an audio speciality store called Sound of Music.Later in 1983 the board of directors decided to change its name as Best Buy.It operates internationally and manufactured so many electronic devices by 2008 they opened approximately 1000 stores internationally.

As the electronic market started growing the Best Buy understands the needs of the customer and started producing a variety of electronic products.

It started joining with competitors to increase its sales like Walmart ,Nebraska and other stores to increase its sales and become one of the pioneer industry in electronic market and attains large market share.

It started partnering with various organizations to enter mobile market like carphone Warehouse, Roxio’s Cinema etc.Started its stores in various shopping malls and outlets for selling mobile phones along with Best Buy branded products.

As per the market requirement Best Buy started selling a wide variety of products to grab the market needs and demand.They products like software, Video games, Music ,digital cameras, mobile phones and home appliances etc. As the online market creates huge requirement,it started selling products through online by creating an online community.It provided an opportunity to consumers to get answers from experts about their products and discuss product experiences.

There are few controversies that has faced by Best Buy they are in 2000 regarding warranty related issue in Florida two consumers brought lawsuit against the company.

Pricing related issues in 2007, ordered an investigation into company's use of an instore website that misled consumers on item sales prices etc.

Apart from all these the Best Buy was one of the customer interested and customer demand products manufactured with best quality and durability.It is one of the giant producer in consumer products in electronic industry.

Recommendations to Best Buy to develop more and more products with innovative technology and best durability in the market and other products that fulfills consumer needs.Bring changes in the environment inevitably effects and the firm’s strategy and needs to develop more plans and strategies to competitive with their competitors in the electronic market.

There is more demand for online market bring some extra features for making more profits through online business and follow the marketing strategies to improve and develop trend and identify the treats at the earliest. The continuous work of reconstructing and improvement will bring growth oriented results to Best Buy.

What would a CLV perspective suggest they do?

According to Customer lifetime value Best Buy is more customer valued company.It understood the customer needs and started producing goods to attract various customers.It needs to provide offers and discount prices during festive seasons and other occasions as usually the online competitions do needs to follow that to perform in the market.

The CLV is important to continue a good relationship with customers and can be added new customers through which Best Buy can make more profits with an estimation of future relation with a customer.

It has to develop more and more programs to interact and communicate with existing and new customers.Because they are the best sources and profits for an organization.

How well do you think Best Buy will do in this market? Explain your rationale.

Already Best Buy is performing good at the electronic markets apart from that it enters in to various electronic markets by producing a wide variety of products to reach every customer. The needs and requirements of consumers are best understood by Best Buy and producing the customer need products are Best Buy techniques.

The strategy in entering online market and partnering with various well known companies bringing best growth for the company.

As a leading company in electronic Best Buy is already performing well and have an advantage over competitors to gain more market share.

The only thing that Best Buy needs to do is brining the most innovative products and daily used products to consumers which fulfill future needs of customers.

Anyways they have their own production of producing their own brands.Develop smart marketing skills to be a giant company in the coming future.