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Best Buy is an American with its stock trading at the New York Stock Exchange. It specializes in the consumer electronics, which takes up about 20% of America's domestic market in technology-based products. Best Buy has 24 shops in the United States. In addition to his presence in America, it is also active in the United Kingdom, Mexico and Turkey. In 2010, the best purchase and its subsidiaries had more than 1,050 branches on local markets. The best buy is today the position 45, according to Fortune's top 1000 companies. What are the factors that best buy the best to get away from his competitors in the market? What are your weaknesses and opportunities? Read this SWOT analysis of the best purchase to find out more.
Best Buy dominates the market in retail electronic products in America. For example, it is the leading retailer of electronic goods in the US, which accounts for about 20% of the market. As a result, the company has a unique market position that promotes its business activity, which is 45 to the global ranking.
Another reason why Best Buy Excels is its improved presence in the United States, in the United States, with the outlets. With its strong network, Best Buy can maintain its economies of scale and strengthen its brand image. This network enables the company to achieve more customers and effectively invade the market.
Best Buy has good practices in terms of growth, profitability and community participation. This gives him a higher customer satisfaction index compared to other players in the industry.
SWOT analysis of Best Buy Shows that there are several shops in America, as a joint venture with different warehouses. This relationship helps the consumer to buy and use its products with a lot of lightness.
It also dominates the market in retail electronic products and provides good gains over the years. The best purchase has a number of weaknesses. His main weakness is the dependence on some suppliers. By the end of 2007, the Best Buy was maintained only 25 suppliers, which accounted for 60% of the company's purchases.
In addition, there is no strong ties of its suppliers. There are no long-term contracts. This approach issues the best purchase of deficiency risks, especially in the case that one of the suppliers turn their backs on them.
Another weakness is the endless lawsuits against his operations. In one of the suits, the Best Buy was best accused of greater prices more than advertising. In 2000, the best purchase was offered to hide guarantees of products to sell their marked goods. Finally, his transfer at the US domestic market could affect sales with low economic growth.
From this swot analysis of the best purchase is clear that the company has a clear future, with a number of ways to expand and diversify its operations. First, the best buy big acquisitions can make. Of the recent acquisitions, the company was able to increase its customer base and strengthen brand image in the market. So it allows Best Buy to enter a new market and develop new products under the same brand name and increase sales.
Second, the best possible plans to expand its business in other countries. By expanding its operations geographically, this guarantees the company more options and a higher market share.
The first threat is Cutthroat competition of three main players, Amazon, apple and Wal-Mart. The competition is stiff as the leading giant inventory of products of the products covered by the electronics increase. In addition, these retailers provide installation services and focus on increasing their market penetration.With increasing competition, this many pressure is practicing the company's margins and damage their operational results.
Another threat is the increase in the rents of the rental equipment in America. When this trend escalates, it can increase the operating costs of the Best Buy, which probably impair its profitability. The company also confronts a risk of low sales, as the Americans with little desire for a low desire to make purchases. This SWOT analysis of Best Buy has explained the business environment that favors and threatens the optimal operations of the company.
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