Rationale
Although, the recommended option is very attractive for the company’s growth and long term sustainability, but there lies a number of flaws in this recommendation. The most problematic drawback of the recommended course of action is the time span involved in the future execution of the strategy because it’s a matter of high uncertainty that the company will achieve a strong market base and response in a near future(Plesničar&Zaletel-Kragelj, n.d.). The other threat is that competitors can easily make a competent move against the company’s new strategy and can capture the newly developed market opportunity in a handsome manner than the one planned by the executives of the Best Buy Co., Inc. Therefore, in order to deal with all these issues the company should develop a special task team for the monitoring of the market and execution of the new strategy, the team will be dependent upon members from all the three business units of the company: The Store, The Segment and The Merchants. This will help the company in reducing the threat of interdepartmental conflicts among the employees of all the three business units. The company is presently lying in such a position that it is impossible for the executives to go for some other course of action because it has already faced huge losses in its earnings and market capitalization. The recommended course of action will also help it in improving its brand image and falsifying the comments and criticism of all its rivals, that the company has been diverted from its core competencies and values, because it will once again prove them the importance and need of innovation in the retail industry(Johnston & Bate, 2003). The recommended option will require the company to conduct an extensive market research study for the purpose of increasing awareness among the customers, this will help the executives in better understanding of the demands and preferences of the customers, which will help the company in designing its future product portfolio and offerings in different retail stores. Apart from the above stated advantages associated with the recommended course of action, the company will also become able to address a number of other issues related to its growth and sustainability in terms of coping with the increasing competition from the Circuit City stores and also help it to expand its business successfully in the rest of the world.
Implementation Plan
The strategy shall be executed in three phases. In the first phase, the company will apply its traditional means of business, i.e. the Merchant driven approach over all of the company’s stores except those, which are already converted under the new customer centric model and also develop a special task team for monitoring and managing the overall change process. In the second phase, the company should conduct a comprehensive market research about the market feasibility of the new strategy and increasing market awareness among the customers. It should also focus upon the strategies of its competitors and make a critical evaluation of their marketing activities. Whereas, in the last phase of the implementation plan, the company should start convergence of the rest of the retail stores with certain necessary modifications in the convergence strategy, which are proposed as a result of the market research and financial health of the company.Moreover, in this phase the special task team will be dissolved, but a new permanent team will be created containing equal number of members of all the three business units, which will monitor the changing needs and demands of the market on certain periodic basis and forward a critical evaluation paper to the executives for further strategic actions.......................................
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