Best Buy Swot Analysis

Best Buy Swot Analysis
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Best Buy Swot Analysis
Best Buy is an American company based in Richfield, Minnesota, majoring in retail business, and more specifically, computing devices and consumer electronics. The company is a little over 50 years and faces off with some giant companies familiar with the business. The company has been through a rollercoaster in terms of revenue, registering a steady rise toward 2007 before a sharp downfall during the recession (Rotheermel et al., 2017). The sale of computing devices contributes to the lion share of the company’s revenue, followed by consumer electronics, and the two segments make up 80% of its revenue (Tankovska, 2020). The company's SWOT analysis outline some of the strengths, weakness, opportunities, and threats familiar with its operations.
Strengths
Best Buy has over 1200 stores present in the Uited States and internationally in addition to the e-commerce platform that allows the consumers to order items to be delivered at their convenience. The company is well-known in the marketplace through its online stores. The company has a strong partnership with reputable companies such as Apple, Lenovo, Samsung, among other key players in the tech industry. The growth of the company has been largely associated with targeted and strategic mergers. Geek Squad, AudioVision, Pacific Sale, Mineshaft are a few of the companies acquired by Best Buy (Rotheermel et al., 2017). The acquisition of Critical Signal Technologies [CST] (Truong, 2019) has allowed it to expand its market while increasing diversity. Furthermore, Best Buy boasts of excellent customer service, both on its online platforms and in the stores. This significantly promotes customer loyalty and ensures retention. The customer-centered approach that Best Buy utilizes after intensive market research attracts more affluent consumer markets. The company leadership has also played a significant role.
Weaknesses
As much as the company has several strengths that raise its likelihood of thriving, it depicts some weaknesses that can potentially affect its operations. A bigger percentage of the retail stores owned by the company are located in the United States, signifying overdependence on the US market. The consumer electronics market has been observed to be seasonal, lowering the company's proceeds in some seasons. Also, much emphasis has been put on electronic and computing devices yet the prices of these products are ever falling, resulting in a shorter life cycle.
Opportunities
The acquisition of CST by Best Buy not only fosters diversity but also presents the company with an opportunity to major in the overly lucrative healthcare industry. Disruptive technologies such as machine learning, AI, blockchain, Internet of Things, when incorporated into e-commerce have the potential to steer the company to a greater heights by pro...