Best Buy saw its largest rival, circuit city, go bankrupt, However, a new archrival , Wal- Mart , was expanding into consumer electronics and stepping up competition in a price war Wal-Mart hoped to win Best Buy needed to face the competition not by lowering prices, but by coming up with something really different. Best Buy needs to determine the correct path to improve its ability to differentiate itself from competitors such as Wal-Mart, office max Etc. First, Best Buy would need to continue to cut prices. Consumer electronics shoppers are really looking for are the lowest priced products.
The company should focus on more high-end products and new interactive features to differentiate itself from the big box atmosphere at Wal-Mart. Best Buy could Meet with their Research and development team and produce their own line of electronics, like the tablet or kindle but offer certain APPS that only Best buy can offer. Best Buy should strengthen their online presence. Instead of charging shipping- they could offer Site to store orders, but don’t exclude certain products. Best buy should continue to improve their Geek squad segment.
They could develop a new software product such as their own anti-virus software. Best Buy “Geek Squad”, right now offers on-line technical support which is a great functional strategy that has been really popular and helpful to customers. If a customer is needing help from home, then they are able to remote connect to their computer and make any adjustments, repairs or corrections. Customers such as myself like this feature and it will keep them coming back for more business. Finding of fact Two: How can Best Buy retain Knowledgeable and talented employees?
The objectives of Best Buys Human Resources Department were to provide consumers with the right knowledge of products and services, to portray the company’s vision and strategy on an everyday basis, and to educate employees on the ins and outs of new products and services. Best Buy employees are required to be ethical and knowledgeable. This principle started within the top management structure and filtered down from the retail field officer through district managers, and through store managers to the employees on the floor. Every employee must have the company’s vision embedded in their service and attitude.
In order for Best Buy to continue to retain knowledgeable and talented employees- the HR department would need to continue to hire skilled employees who would receive a little higher pay and that are cross trained to participate in self managing work teams. For example- train the employees to work in sales and also in areas like Geek Squad. Best Buy would also benefit if the HR department hired a diverse workforce. Research reveals that firms with a high degree of racial diversity following a growth strategy have higher productivity than do firms with less racial diversity.
It would also be beneficial to have quarterly training meetings for employees and let them be part of how we can improve. It is important to have a well-trained, knowledgeable staff to help inform customers about their products. For instance, if a customer came in the store knowing nothing about electronics but wants to purchase an item, such as IPAD, Tablet, Etc. the employee can help explain the difference and the capabilities of each of those items. This is another way Best Buy has the competitive advantage over Wal-Mart… They don’t have as knowledgably employees as Best Buy does.
This will keep the customers happy and return for future purchases. Best Buys customers, suppliers, communities, vendors and shareholders know they they can trust us to do what we say and to act with their best interests in mind. Employees must provide customers with clear, accurate information to help them make informed buying decisions. Having accurate information is both the foundation of Best Buys advertising practices, and the way they must communicate the competitive advantages that distinguish Best Buy from other retailers.