Can the Geek Squad Save Best Buy?

It’s no secret that Best Buy has been under extreme financial duress for the better part of this year. We have discussed the many problems that they have been having in numerous classes here at DePaul. They have also been grabbing headlines for months with negative news about their declining sales. One of the main problems that the company has experienced is the fact that it cannot keep overhead costs low enough to compete with the online retailers. Circuit City had the same overhead problems a couple years ago and ended up filing for a messy bankruptcy. In this new era of prosperous technology companies such as Apple and Facebook retailers like Best Buy are struggling more than ever.

Best buy has been nicknamed by some Amazon’s showroom. Because of it’s costs to pay rent and maitenance on buildings and hire sales and operations staff they can not lower prices enough to compete with retailers without those costs. In an article that I just read about how best buy is attempting to keep it’s doors open the article noted that Geek Squad may be what the company bets on for increasing revenue. Target is already using the Geek Squad and has plans in place where Target customers get service included on tablets and computers that they buy. Now Best Buy has partnered with E-bay to offer similar service packages with electronic devices. Ebay will also offer flat rate packages for already existing items that EBay customers need servicing. With Best buy closing more than 50 big box stores this year do you think that the Geek Squad partnerships as well as an expansion of the Geek Squad can save the company? Also, are the online retailers killing brick and mortar technology stores? What does the next ten years look like for brick and mortar retailers of tech products?

6 thoughts on “Can the Geek Squad Save Best Buy?

  1. I never realized that Best Buy would be in trouble but thinking about it logically it makes sense for the online tech world to take over. The cost of keeping electronics and keeping multiple stores running is costly. Having department stores, which sell electronics such as Target, also reduces the customer experience because they can get it anywhere. I believe the Geek Squad will help for a while but soon enough most electronics will change to EBay and Amazon. It might stink for Best Buy but unless they come up with a new idea to keep customers from going online, they are going to be through the bankruptcy like Circuit City.

  2. When Circuit City filed for bankruptcy, I though Best buy would benefit from it because there won’t be any competitor across the street. But, they didn’t because people could buy cheaper products online that you mentioned in your post. As for Geek Squad, I would never take my PC because they overcharge people. In my opinion Bust Buy will be out f business in the coming years. They just can’t compete with online retailers and Geek Squad will go as well. Even Staple offers Tech support, so they do have competition ion in the market.

  3. I feel that Best Buy is in the same position that circuit city was in years ago. The online market is so big that it is getting super hard for stores like Best Buy to make money. A good point that you gave is that Best Buy is a showroom for Amazon. I agree with this. Sites like amazon are offering same day shipping, so it only makes seance for consumers to purchase products online for cheaper and receive same day shipping.

  4. It does not surprise me that Best Buy is struggling still. Internet websites like Amazon are taking over because they are delivering lower costs to the consumer for the same products, while saving on their own end too. The brick and mortar idea for technology service stores is dying out here. It’s hard to compete when you have Amazon, online retailers, and places like Target that offer cheaper deals for pretty much the same service and product. I agree with previous comments , Geek Squad will not save the retailer. From my own experience Geek Squad is pricy and the service is not exceptional.

    I think that in order for Best Buy to still stay in business they would have to re-market their whole image. I think in this time period, brick and mortar stores are facing many challenges in keeping current with online retailers (because this is cheaper and it is more convenient for the consumer).

    This also reminds me how not too long ago, Borders filed for bankruptcy. The main reason was mostly because Borders had not caught on to the electronic reader market (Amazon had introduced the Kindle, and Barnes and Noble had launched the Nook). It is very important to stay competitive in your industry and to try to differentiate yourself with some kind of advantage from the rest (especially if you operate through brick and mortar).

  5. In the early 1990’s, technology began developing at a rapid pace. As a result, American consumers were finding it difficult to “keep up”. This created a need for reliable technology assistance. In 1994, Best Buy satisfied this need through their partnership with Geek Squad. Unfortunately, consumers have become better at servicing their own technology. In addition, there are many more options if professional assistance is needed. Consequently, I feel that Geek Squad is no longer a competitive advantage for Best Buy. If Best Buy’s main competitors are online retailers like Amazon and Ebay, then Best Buy needs to overhaul their operations.

    I believe it was a good decision for Best Buy to close underperforming stores. Pouring resources into stores that aren’t contributing to your growth is a recipe for failure. In fact, I feel that they should continue closing lackluster stores. Furthermore, I feel that having a physical presence is an asset for Best Buy. People enjoy interacting with new technology before making a purchase. At the moment, Best Buy is a big box store with an online presence. Instead, Best Buy should focus on improving and increasing their online presence. I feel this course of action will prevent Best Buy from closing, while allowing them the ability to do some much needed restructuring.

  6. I feel like Best Buy can be saved, but it will not be because of Geek Squad. Many people find Geek Squad to be quite expensive, and on top of that, as technology advances there will be less issues with electronics. I think Best Buy has to improve their online process to compete against eBay or Amazon. Also, as stated above, a lot more companies offer tech support now which is not going to help the situation. Overall, its going to take more than just the Geek Squad to save Best Buy.

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