Best Buy had its initial public offering (IPO) on Nasdaq in 1985 but migrated to the NYSE in 1987. A chart of the company's stock over the past four weeks is as follows:
Source: Yahoo! Finance (2013)
Short-term movements in share price are mostly relevant to day traders. Most investors hold the stock much more than four weeks. The stock has fluctuated in value over the short run largely because the broad market has done the same, albeit with less intensity, but with beta of 1.48 Best Buy is expected to be more volatile than the broad market.
Best Buy is neither a conglomerate, nor a subsidiary, nor a multinational enterprise nor a holding company. It is primarily a domestic corporation, with a few international subsidiaries. Three-quarters of its business is domestic. As noted, Best Buy does not produce anything other than value-added service. It sells consumer electronics made by other companies. Those other companies are its primary suppliers, and include Apple, Samsung, Sony, Hewlett-Packard, Toshiba and wide range of other companies. The suppliers do not usually utilize just-in-time systems, but Best Buy does try to keep its inventory to manageable levels. It works with key suppliers mainly to ensure availability of goods, especially during key times of the year. With respect to buyers, these are consumers. Best Buy typically seeks to win consumers with a value-added service platform and a comprehensive range of goods.
3. Outlook. Best Buy remains competitive, but has had to deal with some issues related to writedowns and a sluggish business environment. Its revenues have fluctuated over the past few years and are at a lower than average level. The company's asset base has shrunk over that period as well, indicating some changes in its asset mix over the past few years as well. However, it should be noted that cash flow from operations has remained strongly positive over the entire five-year period -- in fact is was highest in FY2012, the year when the net loss was biggest. The key will be to stabilize the company with respect to further writedowns,...
Best Buy is a retailer of consumer electronics, operating with a multichannel platform in North America and China (Best Buy, 2013). In the fiscal year 2013, Best Buy lose $441 million on revenues of $45.1 billion. In the previous year, the company lost $1.4 billion on revenues of $46 billion and suffered a loss in FY2011 as well (2013 Best Buy Form 10KT). Best Buy operates retail stores and an online
BEST BUY CO. INC. STRATEGIC ANALYSIS Strategic Analysis of Best Buy Current situation A- Current performance B- Strategic posture Corporate Governance A- Board of directors B- Top management External Environment: Opportunities and threats A- Natural physical environment B- Societal Environment C- Task Environment D- Summary of external environment Internal Environment: Strengths and Weakness A- Corporate Structure B- Corporate Culture C- Corporate resources D- Summary of internal environment Analysis of Strategic Factors (SWOT) A- Situational Analysis Strategic Alternatives and Recommended Strategy A- Strategic Alternatives Recommended Strategy Implementation Evaluations and control Part II Functional and Business strategies of
Best Buy began its operations in 1966 by founder Richard M. Shulze. The company started its operations by a single radio shop called "The Sound of Music." By 1970, Sound of music was already successful and earning annual revenues exceeding one million dollars. The company was selling asa radio and Hi-Fi stereo and maintained a good status, until 1981 when a tornado hit one of the original stores. Tornodo damages
Best Buy Strategy Best Buy Current Strategy Best Buy Co. Inc. is a global retailer that produces technology and entertainment products and services across the globe. The company incorporated in 1966 in the state of Minnesota and today it is operating in U.S., Europe, Canada, China and Mexico. Best Buy controls a collection of retail stores and websites under eleven brand names. Target Market Best Buy mostly targets the individual consumers, which Best Buy
There is little reason to believe that the upside is going to be sufficiently high to place a "buy" rating on the stock. Returns are likely to be either in line or below what the beta implies unless Best Buy is able to find new ways to grow. More likely, it will be subject to increased competition from its major competitors and will be forced to cut margins further in
Best Buy Inc. Stock Evaluation Analysis Best Buy is the largest specialty retailer of consumer electronics in the U.S., selling a variety of brands of electronic devices such as TVs, home theater systems, cameras, appliances, computers, mobile phones, video games, software, and repair & installation services to consumers across the country under different store brands (Trefis, 2014). The company has over eleven hundred brick and mortar stores in the U.S. And also
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