Finding The Best Buy – Case Study Example
"Finding the Best Buy" From the case study, corporate challenges are likely to face Best Buy. Among the challenges that face Best Buy Co. Inc. includes the high debt levels that have outdone the profit margins (Best Buy Co. Inc. 104-116).This results form the rapid expansion of the company. Additionally, the operating expenses of the company have been indicated to be very high; thus, placing the company at a loss over its competitors. In terms of purchasing power, Best Buy Co. Inc. is far much weaker over its competitors such as Wal-Mart. With the operating expenses rising by the day, Best Buy Co. Inc. is likely to face major issues in the present day market (Best Buy Co. Inc 104-116). Evidently, a great percentage of consumers have opted for online shopping. It is this fact that has led to some companies deflating its expenses so as to have competitive advantages. This competition will indeed make it difficult for Best Buy Co. Inc. to survive in such competition.
To overcome these challenges, Best Buy Co. Inc. may opt for expansion of its products. After expansion the company may invest in advertising and promotions so as to attract more clients. This will increase competition with its competitors; thus, place the company at the same level with its competitors. Secondly, the company may come up with a novel marketing plan that will allow for more advertisements and promotions. This will automatically increase the brand awareness and the clients will be given more incentives to be loyal clients in the company.
Best Buy Co. Inc. Retaining Valuable Knowledge: Proactive Strategies to Deal With a Shifting Work Force. 2002. Web. 19 Aug. 2014.