Best Buy - Competitive Strategy Evolution

In: Business and Management

Submitted By bhavinf1
Words 4544
Pages 19
Competitive Strategy

Best Buy

Best Buy
Group D9

THEME: How Best Buy has maintained and enhanced its Competitive Advantage over the years by constantly seeking a favorable competitive position in the Consumer Electronics retailing industry


Table of Contents
Contents Objective of the report Executive Summary Part I – Early beginnings & Hyper-growth Part II – Initiating Change at Best Buy
-- Recognizing the need for change -- First attempt at change (formulating the Standard Operating Platform) -- Head-Heart-Hands approach to change management (Overcoming Cognitive Inertia) -- Institutionalizing the Change Management Process (Overcoming Action Inertia) -- Impact of the SOP on the Best Buy's operations Part III - Revisiting the Drawing Board -- Building new skill sets -- Formulating Customer Centricity (deploying a new game strategy) -- Implementing Customer Centricity (reconfiguring the value chain) -- Reaping the gains from Customer Centricity Part IV – Staving off Competition: Click & Mortar model -- Industry going through a phase of Intermediating Change -- Where does Best Buy go from here? -- Experimenting may payoff but need to commit References used

Page no 2 3 4-5 5-9
5 6 6-7 7-8 8-9 9-12 9-10 10-11 11 12 13-14 13 13 13-14 15


Objective of Report
Best Buy Co., Inc has been a leading player in the Electronics & Appliances retailing industry for several years now. It has withstood several cycles of churn in the Industry; seen many of its competitors go bust, and faced near bankruptcy on more than one occasion to emerge as an electronic retailer of choice for millions of shoppers in the US and other parts of the world.

The group seeks to examine the changes that Best Buy had initiated at different points in time in its long history that have enabled it to emerge as a competitive and profitable player in the industry. The company…...

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How Do You Define a Competitive Strategy (Strategies) in Best Buy related to a corporation Answer: Principal-agent problems arise in a corporation as a result of the separation of ownership and management. Managers may not act in the best interests of the shareholders while making decisions. Hence the shareholders incur monitoring and bonding costs which are a part of agency costs. It also arises as result of informational asymmetry between managers and other stakeholders of a firm. Agency costs tend to reduce the value of a firm. Type: Medium Page: 8 44. Briefly explain the term "web of contracts" in the context of a corporation Answer: A corporation is a complex organization. All the claimants to the value of a corporation are called stakeholders of a corporation. They are; shareholders, bondholders, employees, managers, suppliers, customers, government and the community. A complex set interrelated contracts governs their relationships. These contracts could be formal or informal. This complex set of contracts can be thought of as "web of contracts." Type: Medium Page: 8 45. Briefly explain the term "Agency costs" as related to a corporation Answer: Agency costs arise in a corporation as a result of principal-agent problems. For example; managers may not act in the best interests of the shareholders while making decisions. Hence the shareholders incur monitoring costs that are called agency costs. It also arises as result of informational......

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