Best buy, the largest Electronic Store of the Country in Trouble? Let’s find out..

Is the largest Electronic Store of the Country in Trouble? Let’s find out..

Today, we are going to talk about one of the largest electronic stores of United States of America. Best buy has been one of the leading electronic suppliers for many years not only in United States but many other countries. After Circuit City going out of business, many of us thought that there is no looking back for this company. However, after Amazon coming into the industry it gave Best buy a tough competition and many people are turning towards online shopping in search better deals and lower prices.

After facing tough losses and losing its market share against many retailers like Amazon, Wal-mart and Apple Best buy has reported 1.7 billion dollar losses for its fourth quarter in March. In order to recover from these loses Best buy came up with a new plan to eliminate about 400 stores out of its 1100 stores in United States. “In order to help make technology work for every one of our customers and transform our business as the consumer electronics industry continues to evolve, we are taking major actions to improve our operating performance,” Best Buy CEO Brian J. Dunn said in a statement. The company is expecting to achieve $800 million in cost reductions by its fiscal year 2015. Besides cutting down its locations and laying off many employees best buy is also planning to change the architecture of its existing and new stores.

Best buy has also announced that they are going to take out most of their displays and not have any source of internet connections in their stores to avoid customers going online to compare prices with its competitors. Best buy is also planning to invest more in Best Buy Mobile, and open 100 more locations.  As part of the company’s new strategy, Best Buy will remodel some of its big box stores with what it calls a “Connected Store” format. These stores will “focus on connections, services and multi-channel experience through a total transformation of both the store and the operating environment.” They are planning to move their tablets and best buy mobile departments in front of the store and move all the other departments in the back of the store.

Although I feel the approach best buy is taking might help them for short period of time, However it is about time for Best buy to focus more on e-business. What do you guys think? With the booming e-business industries and many customers trying to compare prices and looking for a best deal possible, can best buy ever get on the top position ? Does best buy needs to work more on their store and operations management or do they need to focus more towards e-business?

7 thoughts on “Best buy, the largest Electronic Store of the Country in Trouble? Let’s find out..

  1. I agree that Best Buy should focus more on e-business, recently i have seen some local Best Buy stores closing. Some locations are losing more money than other so they can keep some locations open and close others. The same thing happen Circuit City they were losing money at their local store’s. Now they are still operating and but all online, the only bad part about that was it is hard to buy a product without holding in or seeing it in person. So there should be some local stores.

  2. I definitely think that if Best Buy wants to be on top, they have to focus more on their e-business, while still working on their stores and its operations management. In today’s economy it is really important to provide the customer with what they need, which is a quality product for the best available price. There are many options that the customer can choose from, whether it may be online or in store, and the only thing that it mostly comes down to is price. Instead of trying to fool the customer by not having any internet connections in the store, they should be focusing on how to stay competitively priced against their competitors.

  3. I think that e-business is where its at, expecially when it comes to technology. If it’s clothes, then you might want to go try it on for size, but when it comes to technology, you already know the specs you want and its easier to compare, with a lot more options.

  4. I’m very surprised Best Buy has been able to stick around for this long. I personally cant remember the last time I went into a Best Buy store. I believe that if they want to get back on the plus side of things they should focus more on internet users. More and more people are buying their stuff online, so they should come up with a way to make at home buying more user friendly.

  5. I’m shocked to see Best Buy having such huge losses. For me Best Buy is the place I go to when I need electronics and I prefer to go in and buy something rather than online, however many people would disagree with me. That is why I agree Best Buy should focus more on their e-business but should also keep their local stores in mind.

  6. While I think E-business is very important to the future of Best Buy, it is to little to late. In my opinion Best Buy will only see sales decrease. It is one of my favorite electronic stores and I enjoy shopping around the store, but the deals and connivence of online shopping on stores like amazon Ebay are too much to compete with. It will take Best Buy a while have the brand name e-business that their competitors have. I do not think Best Buy will go out of business anytime soon, but as the popularity of online shopping increases and the older generation (the majority of people who shop in store) decreases, Best Buy will continue to close stores and lose sales.

  7. I think there is several ways that Best Buy can innovate their business model in order to draw in customers. Their customer service department has become subpar to many other comparable retailers, and their website often provides incorrect inventory. They are centered around creating their image to be the “ultimate showroom,” however; this leads to several potential customers coming into the store to test products without the intention of purchasing those products from Best Buy. It will be interesting to see the future of this company especially if Amazon decides to buy them.

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