Best Buy Turn Around Strategy

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The final competitive advantage accompanied with Best Buy is the consumers’ ability to touch and play with products before making their decision/purchase. Obviously this cannot be replicated by online retailers like Amazon.com, but customers of Target, Apple, and Walmart certainly do have this ability. So how is this a competitive advantage for the Best Buy? The answer lies in two key words, store vs. department. Other retailers simply possess an electronics department, which ultimately limits the amount of products that they can physically carry and display. Best Buy on the other hand is an electronics store. This gives them greater volume capabilities and allows customers to touch and play with more products; something that a lot of people want to do before investing their hard earned dollars in a consumer electronic product. Therefore, it is my determination that this is also a long term sustainable competitive advantage.

3. What is Best Buy’s business-level strategy? What are its main value and/or cost drivers?

Without a doubt, Best Buy employs a differentiation strategy to add value to its customers. This is achieved as well as value through many of the things already discussed in this essay. For instance, their private label brands such as geek squad cannot be imitated by the competition and gives customers that extra assurance that Best Buy will be with them for the life of their product. Another would be their blue shirts ability to gain the trust and educate customers far better than other consumer electronics retailers. And again, the ability for Best Buys customers to touch and play with far more options than retailers with an electronics “department” adds immense value, especially to those who really want to get the full experience before making a purchase.