Concept check doyOU think Best buy is by far the largest consumer electronics re

Question

Concept check doyOU think Best buy is by far the largest consumer electronics retailer in the world with sales of over $45 billion and almost 4,000 store world wide. Best Buy enjoys tremendous power in the marketing channels within which it operates. All manufacturers and other suppliers providing products to Best buy have pay close attention to what this 1,000 pound gorilla of retailers wants, but even when suppliers go out of their way to meet the demands of Best Buy, they are finding that the giant retailer could block them from getting their products to consumers because Best Buy may favor certain suppliers with which it can make especially attractive deals. In addition, Best Buy is increasing it s emphasis ono own private brand products such as the thinnest laptop on the market and all-electrical motorcycle. Some of best buy's own products may even compete directly with famous supplier brands such as Apple and Sony. Question: why do you think Best Buy is flexing its muscles in the channel? Do you think this type of behavior is inevitable on the part of giant dominant retailers. 30

Explanation / Answer

Best Buy is one of the biggest retailers in the world and entering some specific market regarding the electrical bikes as well as setting up the dominance in the specific structure is not very hard for them. As Best Buy already have an exceptionally well designed structure. Best Buy can widely fact any companies sales as it holds a very large market in electronics.
By implementation of their own brands, best Buy is it directly entering new market segment. Entry of Best Buy directly means increased competition as it has great influence over the customers. Most of these markets are already dominated by technological Giants such as apple and sony. Giving competition to these joints would be very tough as they already have a very strong grip over the electronic market across the globe but as the best buy has a very impact influence towards its customers the overall level of sales but definitely increase in the competition would be intense.

Best bike should rethink about investing large amount in Electronics as this specific market is widely dominated by different brands. this specific type of strategy would not work until a very intense electronic market oriented promotional program as well as Global application is implemented. These brands already have a very strong grip. If Best Buy has to maintain there level of involvement in this market they have to go through intensive research and development as well as implementation of the strategies according to the market.

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