Best Buy Organization
Analysis and Evaluation
Based on the SWOT analysis on Best Buy Organization, various measures need to be undertaken by the company in ensuring the success of the organization. The Best Buy Organization provided the implementation of a new marketing strategy in 2003, which was focused on customer-centricity. The customers were the main focus of the organization in the policy. The most valued customers were the main target of the organization, especially those within a particular market. The stores of the organization were realigned to cater to the needs of the most profitable location of the business. However, the stalls needed staffing of employees with the unique skills required to ensure the demand of the customers were met. The organization provided time for the employees to train to enhance their skills and knowledge of the fields they specialize in. this was done by the organization to ensure that the employees could provide the ultimate in-store experience for the customers to increase their bottom will line (Jiang, R. & Tan, J., 2018). Training of employees can be a costly measure for an organization, especially in situations where the employees are trained on specific skills. This measure ensures an increase in the operational expenses of an organization, which also brings about a decrease in the revenue of the organization. The sales made by the company have been low in terms of growth over the past years. The organization has, however, been able to make significant profits over the years, which have been used in opening new stalls in attempts to offset the losses caused by the organization.
The marketing strategy employed by the Best Buy Organization needs to be reevaluated to determine its reliability in ensuring long term profits for the organization. The organization has used most of its operational expenses in understanding the needs of their customers. However, the marketing strategy does not provide the organization with enough leverage on the competition from other companies to maintain their position in the electronic retail industry. Based on research, the key to understanding the success in a company does not only entail the impact of the organization on society. The key is the competitive advantage of an organization and sustaining a competitive advantage. For the Best Buy Organization to ensure increased sales growth, the organization ought to maintain a competitive advantage over other competitors.
The organization has firmly believed that the customer based strategy is essential in increasing the market globally, especially in China. With the population in china being over a billion people, there is increased industrialization, which makes it a target market for the Best Buy Organization. China is almost becoming the leading producer of most goods in the world. Venturing in international markets may be useful to the organization as it provides the markets with readily made technological devices and due to the demand from the foreign markets (Phadermrod, B., Crowder, R. M., & Wills, G. B., 2019). Venturing into new markets will ensure the growth of sales made by the organization as the areas targeted by the organization is those with high demand for electronics.
The creative invention of the Best Buy Organization has proven productive due to the profits made from the strategy. By considering the needs of the customers, the organization has been able to ensure more sales made by the organization, thus increasing the profits achieved by the organization. The organization made some changes in the payment of employees by moving the sales staff from commission earning to a salary made at the end of each month. This earned the company loyalty by the customers as the products were not highly-priced like it was the case before when the employees were paid on commissions. This resulted in the gaining of revenue by the company for several years. The Best Buy Organization was also ahead of its competitors as they provided technical services to their customers as the customers bought the electronics, and after the customers bought their goods in ensuring that their customers were satisfied. The strategy employed by the organization has always focused on customer satisfaction and the ways to improve the employee’s skills, thus creating an improved experience with their consumers. The Best Buy Organization strategy involves the main actions by which an organization can use to build its competitive advantage and strengthen its position in the marketplace (Niranjanamurthy & Jagannatha, S., 2019). The customers are the main focus of the organization in the strategy. The most valued customers were the main target of the organization, especially those within a particular market. With a differentiation strategy, there is uniqueness ensured by the organization in ensuring that the organization withstands its customer’s value. To maintain this unique position, a company needs to provide excellent marketing and have products of high quality compared to other competitors. The most effective strategy in a business is one that competitors find hard to imitate, thus ensuring customer loyalty to the organization. The Best Buy Organization is determined to improve the relationship with its customers by providing customer satisfaction and having enhanced services offered to them by the employees and quality of the products sold by the company.
Recommendations
The use of different strategies has ensured the organization’s major success in maintaining the leading position in the market of technological devices. The company can offer technical services apart from the selling of the electric machines, which gives it a better shot in terms of maintaining its competitive edge in the market. Their competitors, for instance, Walmart, are not involved in offering customer services; for example, helping the customers operate devices and are not likely to do that. This will ensure the company’s revenue and loyalty by its customers, thus guaranteeing the profits of the company. The transition, however, needs to explore the implications of the rapidly evolving technology to maintain their competitive advantage in the retail industry. Many organizations have adopted the use of technology in the management of their operations. Organizations are also taking the use of technology in ensuring the competitive advantage of their goods and services. With technology evolving rapidly in the market place, the managers in the different organizations need to understand the impact and importance of technology in ensuring the success of their organization. The organization may need to venture into online stores instead of the brock and mortal stalls, which is their primary way of delivering the goods to their customers.
Best Buy Organization should consider a second alternative and make changes along with a permanent policy used in price matching. With price matching, there is reduced showrooming. Among the ways to avoid the use of showrooming would be the use of a browsing fee, which is deducted once a customer makes a purchase online. This approach is already in use and has been adopted by other competitors, for instance, Celiac Supplies. In addition, the organization needs to extend their customer service to ensure that customers can buy stuff online. By the creation of partnerships with the manufactures of their various products, the organization can create an in-store experience that is not achieved by the retail stores.
References
Jiang, R. & Tan, J. (2018). A SWOT analysis for promoting off-site construction under the backdrop of China’s new urbanization. Journal of cleaner production, 173, 225-234.
Niranjanamurthy & Jagannatha, S. (2019). Analysis of blockchain technology: pros, cons, and SWOT… Cluster Computing, 22(6), 14743-14757.
Phadermrod, B., Crowder, R. M., & Wills, G. B. . (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.