Example Of Essay On SWOT-Tows Analysis Of Bestbuy
The strong market presence and extensive consumer base of the company have made the company the most recognized giving it a competitive advantage. For example, the company has more than 1,400 stores and locations in the United States and about 200 stores in Mexico and Canada. BestBuy is a widely recognized brand, and its reputation has made consumers trust the company as opposed to its competitors like Wal-Mart. The Geek squad has helped the company to advance technologically. Geek Squad provides technological services that ranges from consultation to the trade-in-time. An example is the use of Cloud computing as a software service that works positively for the company. The highly trained staff of BestBuy is knowledgeable enough, and this helps them to offer quality services and handle the consumers in a professional way (Best Buy, 2015).BestBuy has also developed aggressive international growth strategies that have played a major role in ensuring that the market penetration is across the globe.
BestBuy depends on few suppliers, and this poses a lot of challenges in the distribution of their products. Sony, HP, Samsung, Apple, Toshiba are electronic products suppliers that only meets a third of the market needs.There are also physical stores that do not perform well and this increase the need to close all physical stores that are non-performing. BestBuy has a poor inventory management system that fails to deliver and make the company more competitive in the market. The company must do away with their broad goals and narrow the goals and align them with their objectives. BestBuy products encompass a wide range of different brands in their stores. Their ability to produce many brands poses problems for the company during marketing campaigns (Yaminisanmukhani, 2011).
BestBuy can take the advantage of the emerging global markets and ensures that it expands its services in China, Europe, Mexico, Turkey and Canada. There is also the need to develop online purchasing strategies so that the company can reach a wide customer base since online purchasing is becoming relevant in the modern day. BestBuy must take advantage of its financial status to ensure that it continues to dominate the electronics market and always have the largest market shares. In addition, The Company must update and upgrade in the use of technology because of the rapid outmodedness of the previous technology. BestBuy can also implement the entry strategies that will make it easier to penetrate into the emerging market that portrays high economic growth date. The entry strategies will be very beneficial to the company because it will outdo its competitors (Dchang912, 2010).
The limited number of suppliers in the electronics market has made wholesalers like Apple Stores to compete with the company (www.YouSigma.com., 2011). Retailers like Wall-mart are selling their products at a minimum price so that they can compete with BestBuy despite the fact that they make losses. The company also requires highly skilled personnel that are in a good position to handle all the issues regarding the cloud computing services. BestBuy also excessively depends on “Accenture” for I.T and H.R operations. This can damage the progress of the company it fails to work in the market. BestBuy continues to suffer from the trade wars imposed by the Chinese government over claims that it does not offer quality products (Kasi, 2012). The Chinese government is protecting their companies from the external competition making it hard for the company to excel in the country. The online sources that sell electronics offers the best deals to the consumers because their prices are reduced compared to BestBuy.
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