Best Buy Analysis Essay

Although Best profane is an electronic consumers dream, they are facing two major threats 1) The increasing number of competitors and, 2) The strong outlet of online retailing. I press that to address these issues Best corrupt should close several Brick and Mortar stores and move to much(prenominal) of an online establish strategy.Due to the low cost of online retailing, discount retail merchants such as Amazon, Wal-Mart and Target have been adapted to gain significant market share. Unlike Best Buy, Amazon does not have the overhead associated with brick and daub stores, allowing them to significantly cut prices to challenge Best Buy in the consumer-electronics market. Best Buy has been called Amazons showroom, as consumers would often use Best Buy to sample products while ultimately get them online.Closing brick and mortar stores and using the resources to push a broad cost leadership strategy would lead Best Buy competitive against online retailers once again. Best Buy i s the leader in customer joy and the retail leader of its class. Since Circuit City went under, there is not a large, solely electronic retailer with showrooms creating more visibility. Increasing its brand value over 18% in 2009 alone, the prices must become more competitive so consumers will not take advantage of this and still buy elsewhere.Pushing an online based strategy to combat Amazon and Wal-Mart would lead to growth in the one facet of consumer electronics retailing in which Best Buy is lagging. Although human capital is a major asset for Best Buy, I recommend that expertise be moved to other areas of the company, such as Geek Squad, which has shown growth and profitability referable to the increasing number of consumers who buy online and need assistance installing their electronics. In order for Best Buy to remain competitive in the future, allocating current resources effectively will be essential in acerb costs and developing a cost leadership strategy.