Introduction
This plan of action is to denote exactly what measures Best Buy must take to ensure that it is able to both maintain, as well as expand, its share of the retail market for electronics and other retail items. The truth of the matter is at this point Best Buy is at a critical juncture in both its business model and processes, and must proceed in the right direction in order to achieve the aforementioned objectives. Failure, then, to heed this report and all of its details could mean a regression of Best Buy’s business opportunities.
Situation Analysis:
There are a number of prominent facets of key analytics proof points indicative of the situation in which Best Buy finds itself as 2017 transitions to 2018. One of the most significant of these pertains to its international business. Best Buy’s international business is one the few key areas which was not positively impacted by the Renew Blue plan which you implemented a number of years ago, Mr. Jolly. In fact, it has continued to flounder the way it had prior to the implementation of Renew Blue. Proof of this fact is demonstrated by the December unveiling of Best Buy’s attempts to sell all of its operations in China. Also supporting this fact is the reality that through the early part of 2015 Best Buy was trying to consolidate the remainder of its international business.
Another key point regarding Best Buy’s situation which I am sure you are well aware of is the way the electronics market, and the retail industry as a whole, has transitioned. The first is the onset of online purchases, ecommerce, and mobile shopping. A good percentage of the market share for electronics and retail focuses on these core areas; this fact is immensely reflected in the success of Best Buy’s online activity. Developments in showrooming and webrooming are indicative of this reality; Best Buy has utilized this knowledge to impact its online activities in relation to those related to physical stores. However, the chief point regarding the advent of online shopping is the fact that Best Buy’s main competitors are no longer traditional bricks and mortar operations such as Circuit City, which went out of business a while ago. Although there is still substantial amount of business value generated from physical stores (Amazon’s unveiling of physical locations reinforces this point), Best Buy is competing in a contemporary market largely based online and mobile technologies. Thus, the company’s business model must adjust to reflect these facts accordingly.
Recommendations
In lieu of this situation analysis, the first recommendation is for...
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