Best Buy | Bài tiểu luận học phần Ecommerce | Đại học Quốc gia Hà Nội

Gro Vu Minh Hieu - 20070929
VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL SUBJECT : Ecommerce Class: INE3060 VŨ MINH HIẾ U - 20070929 Gro Vu Minh Hieu - 20070929 Table of Contents
Introduction .............................................................................................................. 2
Part 1: Company background ................................................................................ 3
I. Company overview ............................................................................................. 3
II. History ............................................................................................................... 4
III. Products & Brands ........................................................................................... 5
IV. Difficult period ................................................................................................. 5
Part 2: Business model analysis .............................................................................. 6
I. What Is Best Buy’s Business Strategy? .............................................................. 6
II. SWOT ............................................................................................................... 7
Part 3: Practical Tasks ............................................................................................. 9
Conclusion .............................................................................................................. 10
Reference ................................................................................................................ 11 Introduction
The happening Industrial Revolution 4.0 has become the driving force for the world's
ecommerce as well as Vietnam's growing development, especially cross-border e- 2 Gro Vu Minh Hieu - 20070929
commerce activities, attracting the participation of many people. members of society.
Cross-border ecommerce is rapidly becoming a core element of the global economy and
an inevitable trend that no country can stand aside. With its convenience as well as its
ability to diversify, it is doing a great job in making it easy for consumers to shop and
increasing revenue for businesses. However, Many brands have died since people switched
to online shopping, but among them, there is a tycoon in the electrical business field who
soon recognized the problem and had a very good digital transformation to still be able to
hold on to their king, which is BEST BUY.
Part 1: Company background I. Company overview
Best Buy is the biggest store of purchaser electronics withinside the U.S.A. It sells
generation merchandise, offerings, and answers with about 1, six hundred shops in North
America and nearly $forty billion in annual revenue. Seventy percent of the U.S. Residents
can get the right of entry to a Best Buy outlet within 15 minutes in their location of the
house and the Company additionally operates in Canada and Mexico. Richard M. Schulze
and Gary Smoliak based the Company in 1966 as an audio uniqueness save working
withinside the call of Sound of Music. Geek Squad, Magnolia
Audio-Video and Pacific Sales are the leader subsidiaries of Best Buy. It featured at the
New York inventory Exchange in 1987. As of FY 2018, Best Buy has worker electricity of
125,000, as of 2018, unfold throughout the U.S.A., Canada, Mexico and sourcing places
of work in China. The Company is based in Richfield, Minnesota. By the give up of Gro Vu Minh Hieu - 20070929
economic 2018, Best Buy has 1, two hundred large-layout and three hundred small-layout
shops, in the course of their worldwide and home segments. Best Buy is famed for its
recycling program, the enterprise has partnered with Electric Recyclers International, a
California enterprise this is specialized withinside the recycling of electronics and
generation. Best Buy claims to acquire 409 kilos of e-waste every minute the shops are opened. II. History
Best Buy was originally founded as Sound of Music, Inc. by Richard Schulze and another
partner in 1969. It operated as an unmarried domestic and vehicle audio uniqueness keep
in St. Paul, Minnesota. In 1971, he offered out his companion and started to increase the
chain. By the early 1980s, Schulze broadened the product line to encompass home
equipment and VCRs to goal older and extra prosperous customers. Schulze could hold to
increase the product line to healthy the wishes of his customers. After nearly two decades
of operations, Sound of Music formally modifications its call to Best Buy and launches its
first superstore in 1983. Best Buy grew hastily between 1984 and 1987; it improved from
8 shops to 24 and its income jumped from $29 million to $240 million. In 1985, the
employer correctly raised $eight million in an IPO on NASDAQ. To set Best Buy other
than its competitors, Schulze brought the warehouse-like keep layout in 1989 and took the
income group of workers off commission. The range of personnel in step with keep turned
into decreased via way of means of approximately a third, ensuing in big fee savings. This
idea turned into important to Best Buy’s ascent to emerge as the second one biggest
purchaser electronics store withinside the U.S. via way of means of 1993. 4 Gro Vu Minh Hieu - 20070929 III. Products & Brands
Best Buy sells purchaser electronics and quite a few associated merchandise, consisting of
software, video games, music, cell phones, virtual cameras, automobile stereos, and video
cameras, further to domestic appliances (washing machines, dryers, and refrigerators), in a
non-commissioned income environment. The Company persevered to increase in the
course of the Nineteen Seventies and assumed its modern-day call in 1983. Many of Best
Buy’s merchandise is to be had to clients on a self-carrier foundation via its online income
channels withinside the US, Canada, and Mexico, in addition to via its cell apps. It pursuits
to offer brilliant consumer carrier, merchandise at affordable charges, and informed
technical assist to its consumer base of trendy consumers. IV. Difficult period
The 1980s to 2000s was the heyday of Best Buy when this electronic retail chain
continuously expanded its branches throughout the United States, however, things took a
turn for the worse as e-commerce grew. the direct attack on the retail industry. In 2012 Best
Buy was in an unprecedented situation. Best Buy's revenue reached more than 50 billion
USD, but profit was only 1 billion USD, much lower than 2.73 billion USD the previous
year. Best Buy had to close and lay off a series of employees, as technology and e-
commerce developed, customers still came to Best Buy's retail stores to admire and
experience them, only to return home. and order on Amazon. The main reason is due to
cheaper prices and faster and more convenient purchasing process. Realizing the problem,
Best Buy's management has implemented a series of policies so as not to be in the same
situation as other brands, falling before e-commerce, Best Buy has implemented a series of
digital transformation policies. and finally, this has also helped Best Buy regain its position
and compete on par with other big players and especially Amazon. Gro Vu Minh Hieu - 20070929
Part 2: Business model analysis
I. What Is Best Buy’s Business Strategy? Strategic Acquisition
In early 2000, Best Buy opened 47 new stores with a smaller area but still serving the less
populated areas, Best Buy also partnered with Microsoft to launch the website bestbuy.com.
Customers can choose to buy items on the website and the goods will still be delivered to
their homes. Also in 2000, Best Buy secretly acquired Seattle-based Magnolia Hi-Fi, a
chain of 13 videos, audio, and technology stores, marking its entry into the high end of the
retail market. Retail of consumer electronics. In 2001, Best Buy acquired Musicland - a
company that retails entertainment products and simultaneously develops the market in
Canada with 88 stores. Best Buy acquired Burnaby and British Columbia in 2002, acquired
Minneapolish Geek Squak in 2003. This has partly helped make Best Buy one of the largest retailers in the world.
Excellent Customer Service
Best Buy has been recognized to be a purchaser-centric shop that’s dedicated to purchaser satisfaction.
For example, the shop is devoted to know-how purchasers demanding situations and
devising techniques for presenting sensible solutions. Excellent Omni-Channel
Best Buy is a shop that encourages its clients to live longer and in the long run act on their
impulses. By staying longer, they grow to be spending greater money.
Also, it couples up its in-shop purchasing with eCommerce techniques that improve each online and in-shop sales.
Customer-Centricity Operating Model
Best Buy’s fulfillment so far is a testimony to its dedication to “deal with a patron as precise
individuals [and] assembly their wishes with cease-to-cease solutions. Since 1989, Best
Buy prides itself as one of the earliest outlets to undertake the method of noncommissioned
personnel to provide clients greater management in the course of the shopping experience. 6 Gro Vu Minh Hieu - 20070929
Cross-Industry Expansion
Since 2000, Best Buy has received whole or majority stakes in 9 agencies that supplement
its current merchandise, offerings, and culture. These acquisitions, over $three billion in
blended value, extended the company’s operations into Canada, China, and Europe.
Additionally, they delivered an extensive variety of merchandise consisting of kitchen and
tub tub appliances, broadband technology, and restore offerings to Best Buy’s current portfolio. II. SWOT Strengths
Demonstrated financial strength
Best Buy has constantly recorded a sturdy increase. The employer’s sales grew at a CAGR
of 9.90% at some point of FY05-08, from $27 billion to $forty billion. Operating income
grew surprisingly at a CAGR of 10.64% at some point of FY05-08 from $1.four billion to
$2.1 billion. Also, internet profits multiplied through a CAGR of 9.35% at some point of
the equal period, from $980 million to $1.four billion. The growth in internet profits
changed into pushed through sales increase and a lower in selling, fashionable and
administrative rate price, offset through a lower in gross income price and a better powerful
profits tax price. With the massive growth in its working and internet income over the years,
the employer bolstered its economic role withinside the market. Gro Vu Minh Hieu - 20070929 Unique BOPIS Mix
All Best Buy’s shops are used to deliver online orders, with 93% of online order returns
being finished on the shops. Additionally, it released pick-up factors in UPS and CVS
places for online customers. This specific blend is fantastically powerful evidenced through
the growth in Best Buy’s BOPIS (buy-on line-pickup-in-store) through 40%.
Intensive Cost Management
Since 2017, Best Buy’s income has multiplied notably all way to its powerful price
management. Its hobby rate reduced from $ seventy-two million in 2017 to $ sixty-four in
financial 12 months 2020, even as different stores war with growing costs. Strong Market Presence
Even eleven though Best Buy's handiest has 997 shops withinside the US, the enterprise
has unfolded the shops flippantly throughout the market. 70% of Americans stay within 10
miles of a Best Buy store, which has multiplied income and contributed to its profitability. Weakness
Restricted withinside the US
The store has a complete of 1231 shops globally, with 997 shops being positioned
withinside the US. This is why Best Buy isn't famous or exceedingly diagnosed in North
America. Restricting its operations in and across the US exposes the emblem to a myriad
of problems withinside the market.
Negative Publicity
In January 2020, it turned found out that Best Buy’s board turned into probing allegations
of an beside the point romantic courting among CEO Corie Barry and any other corporate
executive. Allegations towards the CEO paints the store as untrustworthy. Opportunities Increase Online Sales
Even eleven though Best Buy has followed eCommerce very effectively, it nevertheless
has room for growth. It needs to search to achieve an equal degree of eCommerce adoption
as Amazon. As of February 2020, its online income accounted for 25% of general income
and nevertheless has an extended manner to go. 8 Gro Vu Minh Hieu - 20070929
Expand in Emerging Markets
With the maximum of its shops positioned withinside the US, Best Buy needs to be seeking
to enlarge greater throughout the world. Unlike the saturated and aggressive UK market,
Best Buy can achieve unsaturated markets in rising economies. Threats Intense Competition
In the net sector, Best Buy competes with Amazon. Subsequently, it's miles warding off
sturdy and constant brick-and-mortar competition like Walmart. Whether it's miles online
or offline, competition is all salivating at the same time as making plans on the way to grasp
Best Buy’s marketplace share. Looming Recession
It might be unwise for any commercial enterprise to assume they may be proof against a
financial recession. With the looming pandemic recession, Best Buy’s meteoric upward
push may also quickly come to a surprising halt.
Part 3: Practical Tasks
Digital marketing plan for Disney shop: The new collection of Avengers Endgame movie Market analysis:
Disney's Avengers movies have never been ignored, there have been many Avengers
movies with hundreds of millions of dollars in revenue, followed by a series of publications
about it that are also very popular. Avengers: End game has earned more than 2 billion USD
and has become the highest-grossing film globally, this will be a very good launchpad for
Disney to launch this collection. Although not yet launched, there have been many orders
placed, the needs of people from all over the earth. Given the film's coverage plus Disney's
popularity, this will be the best-selling collection of 2019. A lot of people have been looking
forward to it, and the Twitter hashtag: #newcollectionendgame has also reached the top. Marketing content: Gro Vu Minh Hieu - 20070929
Avengers and superheroes never go out of hot, we've released a lot of different products
about this. And this year, to celebrate Avergres: End game's highest grossing worldwide,
we're giving you a sneak peek. launch a new collection called The new collection of Avengers: End game
In this new collection, in addition to the shirt, this year we also added hoodies, cards, pens,
and mugs signed by superheroes, and it will be a limited edition.
It will be the best thing you should have to keep the memory of this movie, a movie that
closes phase 3 of the entire franchise. In addition, we will also include small surprise gifts
in each box for the luckiest people. Conclusion
Best Buy is one of the world's leading retailers, although it has encountered many
disadvantages and difficulties in integrating with e-commerce, up to now, thanks to its good
adaptability, Best Buy still retains its position and is on par with other e-commerce
platforms. And in the future, with the advantages that we have, Best Buy will reach even further the future 10 Gro Vu Minh Hieu - 20070929 Reference Anon
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canvas/bestbuy-business-model-canvas/ (Accessed: 13 January 2022).
Best Buy: Creating a Winning Customer Experience in Consumer Electronics | Emerald Insight
" Best Buy: Creating a Winning Customer Experience in Consumer Electronics | Emerald Insight"
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https://www.emerald.com/insight/content/doi/10.1108/case.kellogg.2021.000032/full/html (Accessed: 13 January 2022). Anon
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