Best Buy Co. is a company that operates in the United States, Canada, and Mexico and focuses on the delivery of various technologies to enrich the lives of people. The range of services varies from entertainment to food preparation and health wellness, and the company promotes services that aim to solve consumer’s technology issues and address basic human needs. Partnership with vendors, improvement of customer satisfaction, focus on the value over the price, and active social position is the key elements of BestBuy’s multichannel strategy.
One of the key factors that contribute to the success of the company is its multi-channel strategy. BestBuy can ship products from all the stores in the US and large stores in Canada with an opportunity to pick up the product that has been purchased online from the store. Such a variety of choices for customers allows them to win loyal clients and to attract new ones that contribute to the development of business through a positive customer experience.
An approach through which the company creates closer relationships with vendors is also beneficial. For instance, BestBuy opened a vendor store-within-a-store, which allows retailers to rent part of the space to run an independent shop. Such a store develops vendor partnerships and improves the quality of customer experience.
Moreover, a wide range of products increases customer satisfaction. The company has two segments: domestic and international, and offers products in six revenue categories: computing and mobile phones, consumer electronics, appliances, entertainment, services, and others.
A variety of products allows satisfying the diverse needs of BestBuy’s consumers; however, the quality of services plays an important role in customer satisfaction. Thompson states that a company can achieve a competitive advantage when “it provides buyers with superior value compared to rival sellers or offers the same value at a lower cost to the firm” (7). Based on this fact, one can conclude that BestBuy finds its primary competitive advantage in providing superior value. They strive to offer solutions to various customers’ needs and assist customers online, in stores, and in their homes, ensuring up-to-date delivery.
Even though the company’s primary competitors, such as multi-channel retailers and e-commerce businesses, focus on lowering the price, they believe that the quality service they provide manifests their advantage. Nonetheless, to strengthen the advantageous position, BestBuy makes maintenance of the price their ongoing priority, which also includes supporting efficient operations and developing vendor partnerships.
The key activities that the company performs help to define its strategy. BestBuy is an organization that aims to enrich society through technology. Such purpose requires involvement in the social life, and the company aims to adopt a sense of corporate responsibility, which allows the business to sustain and develop interactions with stakeholders, including customers, employees, and partners. For instance, employees receive additional services, such as mental health coverage and backup childcare.
The company owns the Teen Tech Center that allows teens to engage with the latest technologies and receive the knowledge needed for their future careers. Attention to the environment is highly appreciated among organizations that deliver goods as it becomes an international concern and requires drastic attention. BestBuy develops strategies to minimize carbon emissions in its operations and promote programs that deal with the recycling of electronics and appliances. Therefore, the company has a strong social position that addresses critical issues in society and contributes to the development of it.
Best Buy provides not only various products but also a well-developed service behind it. Its customer-centered approach that focuses on improvement, understanding of weak spots, and readiness to work on them makes the company a solid competitor. The company’s multi-channel strategy that is achieved through customer satisfaction and partnership leads the company to success and proves that they have a well-developed plan for improvement, which makes them suitable for investors.
Work Cited
Thompson Jr., Arthur A. Crafting & Executing Strategy. 21 ed., McGraw-Hill Education, 2018.