In June 2012, Best Buy was in crisis. In 1996, Best Buy ahead of Circuit City, a world leader in consumer electronics retailing, but 18 years later, Best Buy now found this position under threat. With $ 51 billion in revenue, it was still the largest retail CE, but sales were flat and profits collapsed. Meanwhile, sales of Amazon in the category of Best Buy have been growing by more than 50% per year and total sales of $ 48 billion, were close to Best Buy. As Wal-Mart cherry popular items for steep discounts and Amazon encouraged consumers to compare prices with smart phones, Best Buy is a salon for a lower cost retail models. International expansion has fought and domestic sales of digital TVs were cooling. Despite the popularity of mobile devices offered slight growth, many devices have been sold phone service providers, creating increased competition in the retail sector. To add to the problem of Best Buy, April 10, 2012, CEO Brian Dunn has resigned after an investigation into his personal conduct. June 7, 2012, Dick Schultz, the founder of the firm that the transition of the company through many strategic changes since 1966, also decided to leave and to "explore all options" for the 20.1% stake in the company. Best Buy seen by many competitive problems in the past. Will it be able to fend off these challengers and maintain its position? "Hide
by John R. Wells, Galen Danskin Source: Harvard Business School 23 pages. Publication Date: June 30, 2012. Prod. #: 713403 - PDF-ENG
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