Best Buy: Reinventing Itself, Yet Again
It seems like just a short time ago that Circuit City, Best Buy's largest competitor went out of business, creating a huge opportunity for the company. A strategic analysis showed that Best Buy then sold 16 times the amount of electronics than its closest competitor, Wal-Mart, which allowed Best Buy to streamline operations and release much of it's store-level middle management positions.
But that was last year. This year, the strategic plan has been updated and Best Buy is following the trend of other major box stores by decreasing its footprint. This year's strategy includes 150 much smaller Best Buy mobile locations that will only sell smart phones.
Online sales and the real estate market are causing big box stores to change their strategic approach for 2011.
S.A. Romeo
The Strategy Expert
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