What is SWOT analysis? It is a structured planning method that involves the analysis of the situation within a company, as well as analysis of external factors and the situation on the market. SWOT analysis emphasizes that the strategy must to combine the internal capabilities and external situation the best way as possible.
It seems that after years of transition, which included employee layoffs, the closing of underperforming retail locations and the repurposing of remaining stores, as well as the expansion of its online presence, the company appears to be on the right track.
Though same-store comparisons remain challenging, Best Buy has made inroads in new sales avenues, specializing its stores to cater to certain product sectors and placing an increased premium on the e-commerce platform.
Is the brick-and-mortar presence necessary in an age where customers are increasingly choosing to do their shopping online? Is investing in Best Buy the right move for long-term investors?
The Business Best Buy is a leader in technology Best buy swot analysis matrix sales, services, and solutions. Founded in as an audio specialty store, the company as we know it today was largely established in the s, when it was renamed and eventually listed on the New York Stock Exchange.
While it ascended to the top of the big box electronic retailer pyramid, the company has struggled for several years amidst the proliferation of online shopping and some tawdry headlines impacting the executive level.
Now, with a leaner operational structure that aims to support its e-commerce business, Best Buy is confident that it can usher in a new era of growth for the Minnesota-based retail electronics veteran. The trusted blue-and-yellow branding scheme is synonymous with electronics for many Americans, and ensures that Best Buy is one of the first destinations for customers looking to make both big and small purchases in the sector.
Inits Best Buy Europe venture was terminated only 11 stores into its store goal. The year before, it exited the Chinese market.
In fact, its only markets outside the United States are in Canada and Mexico. But while lacking in other regions, management remains confident that its strong foothold in U.
Weaknesses Sales Growth - Same-store sales continue to struggle. Ultimately, though, the company relies on new technology and products to drive its sales higher.
Dependence on Brick-and-Mortar Business - The company performed a minor miracle several years ago, when it averted likely bankruptcy through the restructuring of its business. It streamlined its operations, shutting down stores en masse and repurposing its remaining retail locations to also function as distribution supply centers for its budding online sales.
Due largely to the high cost of doing business in these stores, profit margins appear stuck in the low-single-digit range. Thus, reducing overhead and closing underperforming retail locations remain central strategies for Best Buy.
The always-anticipated next generation TV line will see new innovations being offered to customers. Laptops and tablets outfitted with OLED screens and other smart features should continue to boost business on that front.
More affordable drones and smart appliances are just two more technologically savvy in-demand products that are worth getting excited about. The challenge here will be making sure customers are compelled to buy these products from Best Buy, rather than from a competing retailer.
E-Commerce Expansion - One area that the company has excelled where its big box competitors have not is on the online marketplace. Radio Shack and Circuit City were woefully tied to the success of its brick-and-mortar locations, believing that in-person sales teams and customer service would win out over the convenient offerings of at-home shopping.
Noting the failures of its former competitors, Best Buy completely overhauled its online sales platform inand has seen that area of its business grow precipitously since then.
Threats Direct-to-Consumer Sales - As consumers become more seasoned online shoppers, there is a risk that they will forego retailers altogether and buy from manufacturers directly.
Particularly, this could drastically impact phone sales. Apple AAPL — Free Apple Stock Reportwhich is set to introduce its iPhone 7 this year, is among the many technology companies who sell their devices directly to the public, both online and at their own stores.
Heated Competition - Though it outlasted its mid-decade rivals, the increasingly digital playing field is rife with its own challenges. Rather, with each holiday season it seems more apparent that Amazon is getting stronger, in terms of both its sales breadth and capacity to keep customers happy.
Conclusion All told, we believe Best Buy is moving in the right direction.
But, despite its growing e-commerce exposure and established retail brand, the threats facing the company outweigh the positives, in our view. Further, the aforementioned price run up has limited much of the long-term upside here. Subscribers interested in investing in or learning more about Best Buy should consult our full-page report in The Value Line Investment Survey.Best Buy Corporation Strategic Management Analysis.
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Hussein, H. Marotske -- UST EMBA  Table 3: Best Buy . Weakness of Best Buy Co., Inc. – Internal Strategic Factors. Weakness are the areas where Best Buy Co., Inc. can improve upon. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on .
SWOT Analysis: Best Buy Company Robert Harrington | March 08, Best Buy Company (BBY) shares are off to a strong start in , appreciating more than 10% amidst challenging market conditions.
The election of the best strategy between the two strategies uses the Quantitative Strategic Planning Matrix (QSPM) (Forest et al, ).
The SWOT analysis factors are given weights and the. Best Buy SWOT Analysis / Matrix Essays, Term Papers & Research Papers SWOT analysis is a vital strategic planning tool that can be used by Best Buy managers to do a situational analysis .
Find the latest and comprehensive SWOT & PESTLE Analysis of Best Buy, the U.S transnational consumer electronics retailer.