Best Buy Analysis Essay

Although Best Buy is an electronic consumers dream, they are veneer two major threats 1) The increasing number of competitors and, 2) The strong emergence of online retailing. I preach that to address these issues Best Buy should close several Brick and mortar stores and move to more of an online based strategy.Due to the low equal of online retailing, disregard retailers such as Amazon, Wal-Mart and Target have been able to gain epoch-making market share. Unlike Best Buy, Amazon does not have the operating expense associated with brick and mortar stores, allowing them to significantly cut prices to challenge Best Buy in the consumer-electronics market. Best Buy has been called Amazons showroom, as consumers would ofttimes use Best Buy to sample products while ultimately buying them online.Closing brick and mortar stores and using the resources to push a broad cost lead strategy would make Best Buy competitive against online retailers once again. Best Buy is the leader in cust omer satisfaction and the retail leader of its class. Since Circuit City went under, there is not a large, altogether electronic retailer with showrooms creating more visibility. Increasing its brand value everywhere 18% in 2009 alone, the prices must become more competitive so consumers will not take advantage of this and still buy elsewhere. button an online based strategy to combat Amazon and Wal-Mart would lead to growth in the one facet of consumer electronics retailing in which Best Buy is lagging. Although benevolent capital is a major asset for Best Buy, I recommend that expertise be moved to other areas of the company, such as snowflake Squad, which has shown growth and profitability due to the increasing number of consumers who buy online and deficiency assistance installing their electronics. In order for Best Buy to take a breather competitive in the future, allocating current resources effectively will be immanent in cutting costs and developing a cost leadership strategy.