...CASE STUDY: Best Buy adapts customer-centric model for increased profitability and enhanced customer service. Introduction The goal of Best Buy is to make life fun and easy for its consumers. In order to achieve this, they started applying the customer-centric model in some of its stores around the US. They gathered information about their customer and their buying habits, developed a database making them better understand existing customers; identify new consumer segments, etc. The application of the model made a good impact in terms of profitability, therefore making it an effective step despite the negative effect of the conversion costs it requires which is only a one-time expense and will be recovered over a span of time. Statement of the problem Their data analysis, which is a part of their customer-centric model practices, was able to identify five Angel customer segments and their Devil consumer. They found out that losses produced by Devil customers can wipe out profits generated by Angel customers. Strategic Alternatives 1) Encourage the Angel customers to make more frequent and in larger volume purchases a. Group bundle promos such as ‘family bundle’ or ‘barkada bundle’ promos, these are promos where customers can buy specific items at a lower price by buying in groups. b. Membership Cards to increase customer loyalty. These cards will let members avail special privileges such as free delivery, service priority, and special discounts on promo...
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...History Best Buy Co., Inc. (NYSE: BBY) began in 1966 by Richard Shultze and the original name of the company was Sound of Music. The companies name was changed to Best Buy in 1983. They had almost $50 billion dollars in revenue during 2013 with 145,000 plus employees and over 1,400 stores across the U.S and internationally (finance.yahoo.com). Their loyalty program is one of the largest in the U.S. which has more members than hotel, airline and other retailer programs and they continue to have the largest share of the electronics and appliances segment. In 2000 Best Buy decided to give Geek Squad a trial run. The Geek Squad gives computer help online, by phone, they are located in many of the stores and even make house calls to make repairs. In 2002 Best Buy merged with Geek Squad. In 2006, they created the largest repair site ever. They called it Geek Squad City and it is located in Louisville (geeksquad.com). The facility is located on nearly four acres and houses the largest concentration of Geek Squad Agents anywhere. Those that are located in this facility would include the technicians that do the repairs on all of the different types of computer equipment people may have. Best Buy is proud of its recycling program because they are the only ones that have actually made a pledge “To recycle one billion pounds of consumer electronics and appliance by the end 2014” (2014 International CES Green Guide). On average the stores can collect a little over 400 pounds...
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...Resources: Best Buy number one resource are their employees that have the skills and knowledge about what they sell. This makes them a service oriented company. They want to help customers realize the benefits of technology and technological changes so they could enrich their lives in a variety of ways through connectivity. p. (24-1) Capabilities: They have been very successful in a series of acquisitions. They have the ability to effectively determine where to expand. They have become a global company with acquisitions in Canada and China. They have many different markets with consumer electronics, Geek Squad Centers, Builders and Remodelers with Pacific Sales Kitchen and Bath Centers. Also acquired Speakeasy Inc. Provider of broadband, voice data and information technology services. Core Competencies: The company has the Centricity Model which was built abound a significant database of customer information, to construct a diversified portfolio of product offerings. They have also gained valuable experience in the process of integrating companies under the Best Buy family through acquisitions. And they have a talent of retaining their sales staff. Which are trained with the knowledge of all the equipment they sell. Finding of Facts #1: Available cash and long-term debt is not desirable. This is due to the acquisition of assets. (P.24-5) Recommendation: Best Buy should space out acquisitions so their available cash is not stretched so thin. It is great that...
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...Best Buy case study Social CRM connects customers and drives $5M benefit about Best Buy Best Buy is a multinational retailer of technology and entertainment products and services. With operations in the United States, Canada, Europe, China, and Mexico, the Best Buy family of brands and partnerships collectively generates more than $45 billion in annual revenue and includes brands such as Best Buy; Audiovisions; The Carphone Warehouse; Future Shop; Geek Squad, Jiangsu Five Star; Magnolia Audio Video; Napster; Pacific Sales; The Phone House; and Speakeasy. Approximately 155,000 employees apply their talents to help bring the benefits of these brands to life for customers through retail locations, multiple call centers and websites, inhome solutions, product delivery, and online communities. business challenge How does one of the leading electronics retailers in the world engage its audience, provide support, build advocacy, and provide recommendations across multiple channels, in a scalable and manageable way? technical assistance and then helped resolve their questions or guided them to the answer. In 2008, the team took a big step forward launching the new Best Buy Community, powered by Lithium Technologies. The community offers a place where customers can engage in conversations with Best Buy’s advocates including Blueshirts, Geek Squad Agents, and the community teams, as well as with other customers. Users interact with peers; ask questions, rate answers by giving...
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...Best Buy Co., Inc. Sustainable Customer Centricity Model Case Study Analysis Amber Keita ADMIN404 November 16, 2013 Table of Contents Executive Summary 3 Introduction and Company Overview 4 Mandate 4 Core Purpose 4 Vision & Major Goals 5 Core Values & Guiding Principles 5 Stakeholder Analysis 6 External Analysis 7 Opportunities 7 Economies of Scale 7 Complementors 7 Global Expansion 8 Threats 8 The Internet 8 Big Competition 9 Government Regulation 9 Internal Analysis 10 Strengths 10 No Commission Sales 10 Customer Centricity Model 10 Broad Market Coverage 11 Multiple Product Lines 11 Weaknesses 12 High Debt – Low Cash 12 Pricing Pressures 12 Legal Issues 13 Short Product Life Cycles 13 References 14 Exhibits 15 Executive Summary Best Buy Co., Inc. is a leading retailer of consumer electronics in the U.S. and Canada with nearly 4,000 stores worldwide. Among the extensive range of products marketed, are mobile phones, televisions, gaming systems, appliances and computers, along with all of their components and accessories. The company pursues a differentiation strategy based on excellent customer service, no commission, highly informed sales staff, and a plethora of end-to-end services. Best Buy was started in 1966, and has acquired seven companies in the path of its growth, all of which either provide a complementary service and/or additional products for its customers. The external analysis identifies...
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...used? Have scientific studies been conducted to come up with a universal standard for every lab to use. Keywords: Introduction Best Buy is an electronics retailer based out of Richfield, Minnesota specializing in consumer electronics. The company’s products include in home-office equipment, entertainment software, appliances and mobile products as well as support for all their products. Best Buy has a global presence having operations in Europe, Mexico, China and Turkey (Datamonitor, 2011). The firm has successfully differentiated itself from other firms within this market by using a customer-centric approach having a focus on customer service. This approach has allowed Best Buy to take advantage of the high growth in China as well as sustain growth in the more mature markets in the United States and Europe (Datamonitor, 2011). How Best Buy differentiates itself Best Buy utilizes an overall customer-centric marketing approach using local demographics to tailor products and services. This creates customer loyalty and attracts more affluent customers that need advice as well as setup which cannot be offered by a discount online site. Best Buy has a technically savvy sales staff that can suggest products and services including bundling products and offering lucrative extended warranties. They can also offer competitive finance offers using their credit card and provide expert installation using their in-house Geek Squad. Another factor is Best Buy has both a brick-and-mortar...
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...2: Case Study Report Student name: Kyaw Zin Thant @ Phyo Kyaw Lynn Student ID : 30309572 Lecturer : Raymond Lim Due date : 30 September 2015 Word count : 2,579 words Table of Contents Executive Summary…………………………………………………………………………………3 1. Introduction and background of Best Buy……………………………………………………3 2. Stakeholders interested in the performance of the company……………………………..4 2.1 Employees ……………………………………………………………………………………..4 2.2 Managers ……………………………………………………………………………………...4 2.3 Competitors …………………………………………………………………………………...5 3. Three environmental factors on Best Buy…………………………………………………….5 3.1 Political factors ………………………………………………………………………………..5 3.2 Economic factors ……………………………………………………………………………..6 3.3 Social factors…………………………………………………………………………………..6 4. Three selection methods for employees………………………………………..…………….. 7 4.1 Making interview……………………………………………………………………………… 7 4.2 Check the background………………………………………………………………………. 7 4.3 Department transfer …………………………………………………………………………..8 5. Three strategic rewards to retain key employees …………………………………………......8 5.1 Relating rewards and benefits……………………………………………………………….8 5.2 Training………………………………………………………………………………………….9 5.3 Mentoring……………………………………………………………………………………......9 6. Conclusion …………………………………………………………………………………………..10 7. References …………………………………………………………………………………………..11 Executive Summary This is the final report and the chosen case study...
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...Best Buy Case Abstract In this case study of Best Buy in Crisis, by John Wells and Galen Danskin, Best Buy Company (which will subsequently be referred to as “Best Buy” or “BB”) is shown to be in a period of financial turmoil. Best Buy focused on consumer electronics in 1983 and experienced growth along the way, adapting its product offering and changing its big-box sales style, however, with changes in technology and the retail environment itself, Best Buy is experiencing a stagnation in sales. This report will review the case study and tactics of Best Buy, and in particular, the strengths of this electronics retailer as well as the threats that have emerged that endanger its financial well-being. From the information provided in this case, defensive and offensive plans of action will be suggested and analyzed in order for Best Buy to remain competitive in this industry. By utilizing both types of these recommendations, Best Buy will be able to lower its expenses, increase its revenues, and maintain its current market share as well as attracting new customers in order to achieve the growth the firm once saw. Issue at Hand In a changing electronics retail environment, how can Best Buy survive financially and remain profitable? Internal Recommendations One aspect of BB’s business that is doing well is the creation of Best Buy Mobile and the ability of consumers to choose between multiple carriers at a single location with an even lower priced subsidized...
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...Running Head: Apple Case Study Case Study: Apple Davenport University July 5, 2011 Overview When looking for great employees Apple strays away from the norm. Instead of looking for great salespeople who have a great track record of using sophisticated technology Apple has decided to do it differently. They look for people who love their product and enjoy using it. Apple is looking for people who, “isolate true enthusiasm and believe in the Apple products” (Jason Colquitt, 2011). Black cards are the new invention at this company. Apple has a new strategy to have their people hand out black cards t employees at other organizations. These cards have the apple emblem and have something written on each side. On the front of the card it has a compliment and tells them they should talk to Apple. On the back side it says how they have good customer service ideals and how if they are unhappy with their job they should contact Apple. Apple has also come out with a “store within a store” idea. They have set up shop inside Best Buy and have consultants to go to the stores and train employees about their brands and all others. Now, is their new black card strategy ethical or unethical? Should Apple offer a different training method for its employees recruited through their new black card strategy? Is there a difference in an employee’s motivation at Best Buy selling a Mac than an employee at Apple selling a Mac? Black Card: Ethical or Unethical When it comes to certain...
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...important for a company because it can help the company expend its’ resources more efficiently. This will increase the return on investment of the money spent on marketing. It allows a company to target those consumers most likely to purchase from them. Best Buy is an electronics chain superstore that employs marketing segmentation and target marketing to more effectively increase sales. Marketing Segmentation Demographics Best Buy’s largest customer demographic population is the Baby Boomer population. Their most vital population segment is actually the young twenty-something’s to early 30s adults who are college educated and do not have children. This population is important because of their perceived preference for discriminating tastes and their exposure to a wider range of products and services due to their college education. Not having children is also an important factor as they can potentially have more disposable income to spend on themselves (Smith, 2012). Psychographics The psychological variables for this demographic population is that they tend to seek immediate gratification, are prepared to make immediate purchases, and tend to not want sales person interactions unless needed (Smith, 2012). Best Buy has responded to this mind set by having more inventory on the shelves and available for purchase immediately. The customer does not have to wait to get it delivered from a central warehouse. The...
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...Abstract Businesses today are working more towards predicting the future, how employees will connect with customers, any way or trend the business can find to improve sales and profit. Business Intelligence is used in the market all around the world in many different areas. Businesses are benefitted from the different types of BI methods all the time. Two of the BI methods that are beneficial are called the Market Basket Analysis (MBA) and the Decision Tree Analysis. These two BI methods are used throughout businesses in areas such as marketing, financing, Real estate, and accounting. Both of these methods help business similarly, but in their own different ways. They are two different types of methods that both help businesses make the best decisions to benefit their company. There are many methods or theories that people come up with to help with a business but these are the few that will be examined in this paper. The goal of the modeling technique market basket analysis is to find different relationships of activities that have been recorded with data through the performance of people. This method can be used on any situation where information can be recorded and identified (Pillai, 2011). The way to improve methods for discovering company patterns to increase business utility of an enterprise is by recognizing how the community reacts to certain sales or purchases (Pillai, 2011). One of the first steps in using the Market basket analysis method is finding a subject in...
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... ... “Case Analysis” 1. Background: • Henry Carson founded the company Pacer Athletic shoes in 1970's to serve ... And Marikina Shoe Exchange a Comparative Study Of The Promotional ... Case Analysis When New Products and Customer Loyality ... https://www.scribd.com/.../Case-Analysis-When-New-Products-and-Cust... * Cached * Similar Feb 25, 2014 - If the research shows that customers like the walking shoes, Pacer ... in the market, for instance, based on studies showing that Pacer shoes ... Case Study- Adidas | Laurel Saia https://laurelsaia.wordpress.com/public-relations/case-study/ * Cached Case Study- Adidas ... They have tweeted about their miCoach Pacer, which tracks your pace, distance, heart rate, and also gives you coaching while you are ... When New Product and Customer Loyalty Collide case ... brainfeeder.work/when-new-product-and-customer-loyalty-collide/ * Cached Aug 7, 2015 - The case study “When New Product and Customer Loyalty Collide ... Henry Carson CEO of Pacer athletic shoes is confused after reading a ... Nike Running Pacer Portal – A Work of Substance findsubstance.com/portfolio/nike-running-pacer-portal/ * Cached * Similar The Nike Running Pacer Portal sets out to rethink the business challenges of ... Nike products, the technology behind the products, and what shoe is the best fit ... Case study: EnableSoft Inc | Edward Lowe Foundation edwardlowe.org/casestudy/5898/ * Cached Case study: EnableSoft...
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...RUNNING HEAD: APPLE CASE STUDY Apple Case Study Jennifer Burton Davenport University MGMT 321 – Organizational Behaviour Dr. Phil L. Beukema May 8, 2011 Apple Case Study Apple has stepped out of the box and implemented a new procedure in order to seek out candidates to fill possible employment positions. Looking for true believers in the Apple line of products is the major goal of hiring personal. Apple can supply the knowledge needed to teach, sell, and share to customers. However, the new procedure they have been using has included hiring personal handing out black cards in other organizations. These cards tell the employee that they are from Apple, they thought they had done a great job selling, and that if they’re interested this is how you apply to work for Apple. This new procedure has brought to light many questions starting with is it ethical? I don’t believe that Apple’s “black card strategy” is unethical, but is actually really good business. Creative recruitment techniques are needed in this fast paced and competitive world we are living in. “These days companies are dreaming up new perks and incentives as the industry wages its fiercest war for talent in more than a decade” (Miller & Wortham, 2011). Some perks that companies are offering include: free meals, shuttle passes, stock options, free haircuts, iPads, can bring your dog to work, office views, and so much more. Apple is simply acknowledging...
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...Benchmarking Supply Chain Management: Finding Best Practices By Bjørn Andersen, Tom Fagerhaug, and Stine Randmæl SINTEF Industrial Management, Trondheim, Norway Jürgen Schuldmaier, Profactor, Steyr, Austria ABSTRACT This paper represents a more popularized adaptation of the complete report written (Fagerhaug, Randmæl, Andersen, 1998) as documentation of the benchmarking activity in the project SMArTMAN SME. The objective of using benchmarking in the SMArTMAN SME project was to increase the knowledge about the supply chain management process and to enable the industrial partners to learn from the best practice. This was done through identification and study of other enterprises in Europe and their processes. The two key findings from the benchmarking studies are: 1. A set of flow charts that portray what we consider to be a best practice process spanning the areas of procurement and supply chain management. This process has been designed by merging the best elements from each of the benchmarking partners’ processes into one generic process. 2. Descriptions of practices observed at the benchmarking partners’ that seem to be of “best practice” level and which were not suited for inclusion in the flow charts. 1 The SMArTMAN SME Project The European machine manufacturing industry consists mainly of SMEs, since in most cases the product, a machine, is not suitable for mass production. These European Machine Manufacturing SMEs (MM-SMEs) are forced by the increasing ...
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