In crisis, Best Buy was in June 2012. In 1996, Best Buy overtook Circuit City as the planet's leader in consumer electronics retailing; however, 18 years later, Best Buy found this standing threatened. With $51 billion in earnings, it was still the largest CE retailer, but sales were flat and profits had collapsed.
As Wal-Mart cherrypicked on items that were popular for steep reductions and consumers encouraged to compare costs Best Buy was becoming a showroom for lower cost versions that were retail. International expansion was struggling and national sales of digital televisions were cooling. Even though simple increase was indicated by the popularity of cellular apparatus, telephone service providers sold many devices, creating increased retail competition. To add to Best Buy's difficulties, on April 10, 2012, CEO Brian Dunn stepped down after an investigation into his private actions. On June 7, 2012, Dick Schulze, the firm's creator, who'd navigated the company through many strategic changes since 1966, also decided to leave and "research all available alternatives" for his 20.1% share in the organization. Best Buy had seen off several competitive predicaments in the past. Would it be capable of maintaining its standing and to fend off these rivals?
PUBLICATION DATE: June 30, 2012 PRODUCT #: 713403-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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