Best Buy is the largest consumer electronics retailer in the United States, with

Question

Best Buy is the largest consumer electronics retailer in the United States, with 2009 sales of nearly $45 billion. The company competes aggressively on price with such rivals as Costco Wholesale, Sam's Club, Walmart, and Target, but it is also known by consumers for its first-rate customer service. Best Buy customers have commented that the retailer's sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, MP3 players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features that are valued by many customers. How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A differentiation strategy? A best-cost strategy? Explain your answer.

Explanation / Answer

Answer

Best buy's competitive strategy can be classified as a differentiation strategy. Because, it offers products which are standard and has unique additional features, these products are not cheap hence are not priced low like other brands. It's strategy differentiate the brand products with the products of other competitors in terms of quality, features and service. It's remarkable geek squad tech support and installation services are valued by large number of customers. And it also has retailer's sales staff with knowledgeable and talented employees enhancing its strategic capabilities.

a low cost stratgy provider gnerrally sell its product offering at a possibly low cost to attract the customer, and compete with other organizations. but, best buy do compete with other brands with a comptitive pricing which is not that low and also gain large customer base due to its added sevice values.

when considering the best cost stratgy, it is most difficult to execute and most rewarding stratgy, in which the products are charged with relatively low price and offer substantial differentiation. best buy offers products with pricing not low, but appropriate for competing and diffferentiat its wide range of offerings. it satisfies the customers with value products and extra efforts with exceptional services gaining large customer base.

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