Best Buy & Security (SSL) Technology

Keller Graduate School of Management

Table of Contents

Abstract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 3

Purpose of the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Discussion of Current issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Recommendation for manager of IT and conclusion. . . . . . . . . . . . . . . . . . . . . . 10

Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Abstract

Best buy Co., Inc is a fortune 100 company and the largest specialty retailer of customer electronics in the United States and Canada. The company’s corporate headquarter are located in Richfield, Minnesota, USA, establish on June 26, 2007. The company plans to operate more than 1,800 stores worldwide, including 1,400 Best buy stores in the US.

Best buy sells consumer electronics as well as a wide variety of related merchandise for instance, computer, computer software, Video games and appliances (including washing machine, dyer, and refrigerator) As of March 28, 2008, the company operates 935 Best buy stores, 13 Magnolia Audio Video Stores (Specializing in high-end electronics) 7 stand-alone Geek squad stores, 3 Audio Vision stores, and 17 Pacific sales stores, All through its U.S. retails subsidiary. They also operate 51 Best buy and 128 future shop stores throughout.

Best buy had a lot of profit in the last three years. It means in February 25, 2006 the company cans make the total revenue $30,848,000 then, in March 3, 2007 they cans make much more than in 2006 and the total of revenues in 2007 was $35,934,000. In recently on March 1, 2008 the revenues that the company cans make was $40,023,000

Purpose of the report

To develop the benefit of the company by using Information System Management in order to takes advantage of the security (SSL) technology. In addition to, cut cost and increase revenue by providing the security technology. Since using reasonable security measures to protect the customers’ personal information during transmission, storage, and improving new security technology, so it helps Best Buy transform to a more efficient.

Technology

Online shopping is the process consumers go through to purchase products or service over the internet. In addition, the e-commerce consists of buying and selling of products or services over electronics system such as the internet and other computer networks. The company will provide many tool and system to facilitate the financing and payment aspects of the business transaction.

The advantage derives from the information systems technology that:

- Make it easy for customers to pay for goods.

- Develop systems that coordinate the shipment of goods to customers.

- Develop shipment systems for customer.

Background

Minnesota-based Best Buy Co., Inc. is the leading consumer electronics retailer in the United States, far outpacing archrival Circuit City Stores, Inc. in revenues if not in store count. In early 2004, the company's flagship Best Buy chain included more than 600 stores in 48 states (the exceptions being Hawaii and Wyoming) as well as 19 more in Canada. In addition to personal computers, computer peripheral equipment, and consumer video and audio products, Best Buy outlets, which are on average about 44,000 square feet in size, offer large and small appliances, ranging from refrigerators to coffeemakers, and entertainment software, including compact discs, video games, DVD and VHS movies, and computer software. In the early 2000s, Best Buy acquired two other chains: Seattle-based Magnolia Audio Video and Burnaby, British Columbia-based Future Shop. By early 2004, Magnolia Audio Video, formerly called Magnolia Hi-Fi, operated 19 stores in Washington, Oregon, and California offering high-end consumer electronics and providing expert design and installation services. These stores are about 10,000 square feet on average. Future Shop, operating more than 100 stores throughout Canada, is that nation's largest electronics retailer, offering a wide selection of digital products, televisions, computers, music, and appliances. The average Future Shop outlet occupies approximately 21,000 square feet of retail space. Each of the company's business units also runs an electronic shopping web site on the Internet. Overall, Best Buy's revenue mix has consumer electronics generating 37 percent of the total revenues; home office products, 35 percent; entertainment software, 22 percent; and appliances, 6 percent.

During the next fiscal year, 47 more stores were opened, bringing the total to 357, as the chain moved into the major California markets of Sacramento, San Diego, and San Francisco, and also into Richmond, Virginia. Best Buy also introduced a new and smaller, 30,000-square-foot format designed specifically for markets with populations under 200,000. Nine of these stores were opened during fiscal 2000, and it was hoped that the new format would enable the company to continue its expansion even as its penetration of larger metropolitan areas neared saturation. The smaller stores were also expected to serve as models for a planned move into high-density urban markets, such as New York City, where it would be impossible to build massive superstores. Fiscal 2000 profits jumped 60 percent, to $347.1 million, and revenues grew smartly again, reaching $12.49 billion. This translated into a profit margin of 2.8 percent, significantly better than the 1.1 percent figure from two year's previous.
Current Issues

In some case, customer cheat by switching the products they originally buy from Best buy with the same product then, their bought from the different place such as eBay. The reason is they want to get refund back. So, Best buy can prove the product by scanning the barcode or checking the product number from microchip inside the device to identify that which product is the right one that they bought from Best buy.

3 Year vision

Another three years prospect outcome, Best buy operates a global portfolio of brands with a commitment to growth and innovation. The employees strive to provide customer around the world with superior experience by responding to their unique needs and aspirations. Best buy sell consumer electronics, home-office products, entertainment software, appliances, and related services through nearly 1,300 retail stores across the United States, throughout Canada and in China. However, as the year has passed the competition started growing and best buy had to respond in order to stay in business. It spent millions of dollars in its information systems and its distributions. This meant hiring new people to provide more services. From being a market niche, in which its product where better sold through its web site. Best buy introduced new products in order to keep its customers. Best buy provided good customer service by free shipping, warranties, and performance plan basics. Best buy will continue to be successful as long as it keeps adapting to the rapid change of technology.

We also have chart to compare in which years are the company can make the profit in each years as below:

[pic]

Figure 1-1

If we look at chart (Figure 1-1) it shows in 2007 the company makes the revenues 24,548.00 and in every year the company cans make more revenues and get a lot of profits if we look at chart in figure 1-2. It indicate the company in each year have a growing up in revenues also when we compare with in expense in each year that started on 2007 the expenditure is 50,000 in the contrast, in 2007 the revenue is around 20,000 if we look over in each year you will see the expenditure will decrease in each year but in other side in revenue will increase in each year also.

[pic]

Figure 1-2

Plan

Best buy plans to open approximately 130 to 160 new stores globally during its 2009 fiscal year in order to increase customer convenience and to boost market share while providing the latest element in sores design. The company expects its total retail square to grow 10 percent to approximately 51 million square feet by the end of fiscal 2009

Recommendation for Manager of IT and Conclusion

The Web’s most trusted security provider is the good choice for make the customer trust and come back to buy our products again. There are many ways to provide security of our products. The Secure Sockets Layer (SSL) is one of the security systems that we can use in the business today to protect your personal information during data transport. Furthermore, it has become the industry standard to secure the web properties running these services using SSL server certificates. The ongoing success of today’s web-based services requires that users trust these services and are able to perform transactions securely. A few years ago the price and the process was much more complicated than today because they don’t have a good way to protect. Here is the price for the software and hardware what will be:

• Technicians 50,000 $

• Warranty 1 year validation 1,500 $

2 years validation 2,500 $

3 years validation 3,000 $

• Trust level Basic (**) 100,000 $

Professional (***) 250,000 $

• Software 10,000$

The recommendation to increase margins

-Enable encryption on your site with the SSL Certificate.

If customers log in or make purchases on your site, you need SSL encryption. Before entering sensitive data, Web site visitors look for proof of organizational identity and encryption.

-Display the SSL Certificates Seal and keep customers on the buy path.

Many customers need more than the closed padlock that appears with every SSL connection. 65% of online shoppers have abandoned a shopping cart or failed to complete an online purchase because they did not get a sense of security and trust. Moreover, consumers are increasingly aware of trust marks and understand what they represent.-

-Improve application performance

We assess the performance, capacity, reliability, and manageability of the entire application infrastructure – from your hosts, across your network and to your end user systems – to pinpoint problems and design solutions to help improve performance.

Bibliography

• “Best Buy For Business Privacy Policy.”2008.

• “Best Buy Co, Inc.-Company Profile- Computer Business Review.”2007

• Transport Layer Security (TLS) and Secure Sockets Layer (SSL)

• “Best Buy Financial Statements/Stocks.”2007

• “Secured Transaction-a secured socket layer protocol or SSL.”2008

• “Cybertrust SSL Certificates.”2008

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