Best Buy: Customer Management, Market Structure And Swot Analysis

Ethical Considerations for Marketing

Ethics is about putting principles into action. Consistency between what we say we value and what our actions say we value is a matter of integrity. At Best Buy, we demonstrate our ethics by living our values. This means that we live our values every day in our interactions with one another, customers, vendors, business partners, competitors and in the communities in which we work, live and play. It also means that our business decisions consider not only the financial risk or reward, but just as important, the impact on people, communities, and the environment.

It is also about self-restraint:

• Not doing what you have the power to do. An act isn’t proper simply because it is permissible or you can get away with it.
• Not doing what you have the right to do. There is a big difference between what you have the right to do and what is right to do.
• Not doing what you want to do. In the well-worn turn of phrase, an ethical person often chooses to do more than the law requires and less than the law allows.

Social responsibility

Best Buy is committed to making a meaningful and lasting impact on the quality of life in the countries and communities in which we operate. We strive to be a valued and trusted member in each area while upholding the laws and practicing ethical behavior in all our business dealings.

Charitable Contributions

One distinguished element of our charitable contribution program is the Company’s annual giving goal of 1.5 percent of pre-tax earnings, which it contributes through both the Best Buy Children’s Foundation (BBCF) and direct corporate or retail sector contributions to non-profit organizations.

Customer Relationship Management (CRM) Programs

Best Buy Canada boosts customer experience ratings by building stronger relationships. Best Buy Canada is Canada’s largest and most successful consumer electronics retailer, helping Canadians equip their homes with the latest technology and entertainment solutions. It’s the country’s most popular multichannel retailer with more than 280 million visits in-store and online each year. More than 80% of customer visits are digital.

Sales force has been key to enabling this relationship-driven approach. As Greg Irvine, Senior Product Owner at Best Buy Canada, said: “With Sales force, we can serve our customers before and after a transaction, allowing us to put the customer at the center of our business, creating a connected, higher valued experience across customer touch points.

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Green approach

As a global retailer of consumer electronics, and the largest consumer electronics retailer in the U.S., Best Buy has an obligation to help our fellow employees and our customers, make safe and smart decisions when disposing of the devices they use in their daily lives and reduce our environmental impact.

Examples of environmentally conscious behavior include:

• Properly disposing of hazardous material, such as unused paint and printer cartridges
• Recycling old or obsolete mobile phones and consumer electronics
• Including an environmental screen in our audits of third-party manufacturing facilities
• Participating in and supporting community environmental initiatives
• Creatively minimizing and recycling packaging
• Helping employees and customers make safe and smart decisions
• Reducing our Company environmental impact

SWOT analysis

THE STRENGTHS OF BEST BUY

Good reputation with customers, especially women, who make most of the consumer electronics purchases in the United States.

• A proven ability to retain customer loyalty.
• Strong marketing expertise in the electronics sector.
• Large footprint in the United States with 1,731 stores.

WEAKNESSES OF BEST BUY

• Heavy dependence on brick-and-mortar locations at a time when e-commerce is growing at a rate of 15.4% annually.
• Limited profit margin of 1.92% on July 31, 2105.
• Limited amount of cash; Best Buy reported a free cash flow of $149 million on July 31, 2015.

Pure Competition

Its operation is through two business segments: International and domestic. The domestic segment covers operations within the districts, territories and states of the United States, where its operation is under a variety of brand names such as Best Buy, Pacific Sales, Geek Squad, Best Buy Mobile, Napster, and Magnolia Audio Video. The international segment includes the operations that are outside the United States such as those in Mexico, China, Canada, Turkey and Europe. Products are also marketed under such brand names as Best Buy, Five Star, Magnolia Audio Video, The Phone House, Audio visions, Future Shop, The Car phone Warehouse, Geek Squad, Napster, Best Buy Mobile and Pacific Sales.

Competitors

1. Walmart
2. Target Corporation
3. Costco
4. Staples
5. K Mart
6. Office Depot
7. Sears

E- commerce

In recent years, the company has put a much heavier focus on its e Commerce platform and the digital experience it presents to its customers.

This renewed focus on e Commerce was simply driven by customer demand and an increasing need for digital shopping options that is expected around the world by today’s consumer. Keeping up with customer demand in an increasingly digital world is a difficult task, and having the proper tools to prop up your business is vital. For Best Buy Canada, some of the tools it needed came from Salesforce.com Inc. and those tools helped it create a seamless digital platform. Its platform’s biggest advantage came in helping build an integrated support staff, all the way from online chats to in-home consultants.

References

1. Corporate.bestbuy.com
2. Course hero
3. Itbusniness.ca