1) Conduct a brief Competitive Analysis of Best Buy and Amazon by identifying if Amazon is stronger than, equal to, or weaker than Best Buy in the following: supplier relationships, product portfolio, distribution, and customer experience. Provide data from the reading below to support your analysis.

2) Based on your Competitive Analysis describe one strategic action and one tactical action that Best Buy could take to compete with Amazon. Provide data from the case to support why these actions could be effective.

June 11, 2019. Best Buy (BBY) appoints Corie Barry as CEO from her prior CFO position to replace Hubert Joly, who served as CEO since 2012 and remains as chairman of the board.1 Since 2014, Best Buy's stock perfor- mance has exceeded the S&P 500, but it has lagged behind Amazona rm that has redened retail. Exhibit 1 depicts a stock price comparison of retailers from 2014 to July 2019. Best Buy's performance reflects a stark contrast from many retailers that have declared or are facing bankruptcy, such as RadioShack, Sears, and Toys-RUs. The strategy developed by Hubert Joly was to engage customers in \"high touch\" products that allow customers to interact with competitively priced products, including private label brands. Further, Best Buy offers complements, such as recycling and in-home installation, to further engage with customers. The result was a clear value proposition reflected in the slogan \"Expert Service. Unbeatable Prices."2 The strategic initiative's past success is reflected in Best Buy's performance, and Hubert Joly's selection as the \"retailer of the year\" by Forbes for 2016.3 Still, Corie Barry faces multiple challenges, including being the young- est CEO of a S&P 500 company and one of the few women to run a Fortune 100 company. In addition, Best Buy continues to face considerable head winds.4 Competition in the consumer-electronics industry remains cut-throat. While Best Buy is no longer considered doomed to follow other national consumer electronics retail superstores into extinction, several concerns suggest it will be harder for Best Buy to meet expectations for continued performance. First, Best Buy may simply have received a temporary boost due to struggles by other traditional retailers. Second, Best Buy depends on consumer electronics, a product category increasingly caught up in U.S.-China trade tensions that do not appear to have an easier or quick resolutions 7 Third, ve suppliers (Apple, Samsung, Hewlett-Packard, Sony and LG) supply Best Buy with over half its inventory.8 Best Buy actively partners with its suppliers. For example, Best Buy pioneered the \"store within a store\" concept with Samsung in 2013 to highlight Samsung products within Best Buy locations? The expansion of this program to other rms (e.g., Microsoft and Apple) adds another source of revenue for its stores, but it also increases Best Buy's dependence on suppliers. Fourth, retail continues to change as people adapt to technology and relationships between retailers, customers, and manufacturers adapt.10 Best Buy's "high touc \" approach to retail rests on attracting and retaining qualified employees, and this may hurt profitability if automa- tion by competitors is successful.11 In support of seeing continued challenges for Best Buy, roughly 70 percent of inside stock trades by executives at Best Buy were sales of shares (rather than buying of shares).12 At the same time, Amazon remains a formidable competitor in the electronics retail industry. For example, Amazon has begun offering in-home consultation with its digital assistant Alexa hosted on its Echo speakers. By comparison, Best Buy does not offer a digital assistant that may substitute for its trained sales staff. Amazon is also creating increased physical presence through the expansion of warehouses,13 its purchase of Whole Foods, and partnering with Kohls and Rite Aid for returns.14 While the purchase of Whole Foods by Amazon drove grocery chain companies stock lower, 15 it also gives Amazon a physical presence where customers will be able to pick up A Brief History of Best Buy Together with his business partner, James Wheeler, Ricth Schulze founded Sound of Music, an audio spe- cialty store, in Mirmesota in 1966. The edgling company ended its rst scal year with gross sales of $173,000 and continued to grow rapidly over the next few years. By the time of its initial public offering in 1969, the home- town enterprise had acquired two of its local competitors16 and it opened two new outlets near the University of Minnesota in downtown Minneapolis. Schulze bought out Wheeler in 1971,17 shortly after Sound of Music hit the $1 million mark in annual rev- enues.\"3 In 1979, Sound of Music became the first supplier of video and laserdisc equipment from companies such as Panasonic, Magnavox, Sony, and Sharp. After a tornado hit the Roseville, Minnesota, store in June 1981, the company responded with a \"Tornado Sale" that became an annual event, storm or no storm. This strategy boosted Sound of Music's average sales per square foot to $350, compared with an industry average of $150 to $200. ARRIVAL OF THE SUPERSTORE With ambitions to capture an even larger market share, Sound of Music changed its name, in 1983, to Best Buy Co., Inc. Soon, it adopted its now-familiar superstore format, with an increasingly diversied product range. Best Buy proceeded to grow from 8 to 24 stores and saw its revenues increase from $29 million in 1984 to $290 million in 1987.19 On July 20, 1987, Best Buy made its debut on the New York Stock Exchange (NYSE: BBY) with an initial offering of 8.3 million shares of common stock. Best Buy changed its logo to the yellow tag in 1987, and in 1989 its stores adopted a new \"grabandgo\" store format, called Concept 11. Schulze's revolutionary new approach to big-box retailing combined Walmart's prices with Circuit City's assortment, in a shopping warehouse with a 35,000square-foot footprint.20 The new stores consisted of well-stocked showrooms with self-help information so that people could make their product selections independently and check out in a single stop. Answer centers were still available for people who desired assistance, but salespeople no longer needed to attend to each individual customer or fetch merchandise from storage. This change reduced Best Buy's employment costs by one-third, which compensated for the corresponding de-emphasis on service contracts. However, Best Buy's store format has continued to evolve, and it currently operates Concept IV stores that provide an open floor format and cash registers throughout the store, as well as dedicated spaces to vendors.\" GROWTH THROUGH ACQUISITIONS The year 2000 marked the launch of a new phase of inorganic growth through acquisitions. Best Buy grew its rev- enues from $12.5 billion in 2000 to nearly $51 billion in 2012.22 The company first purchased Magnolia, a high-end consumer-electronics chain with 13 locations throughout Washington, California, and Oregon, for $88 million in 2000.23 The next year, Best Buy purchased Musicland for $425.1 million. The acquisition of the mall-based music In contrast to the rapid expansion of Geek Squad, Best Buy divested Musicland, in 2003, due to declining sales, and increased competition from Walmart and Target in the CD segment, as well as iTunes in digital music. Sun Capital Partners Inc., a private equity firm, purchased the failing firm for only the assumption of Musicland's debt and lease obligations. Brad Anderson, who succeeded Schulze as CEO in 2002, described the Musicland venture as \"a very expensive but powerful learning experience for Best Buy.\"25 After a two-year hiatus from acquisitions, Best Buy purchased AudioVisions and Pacic Sales in 2005.26' 27 In 2007, Seattle-based Speakeasy Inc. was bought, and following that purchase, Best Buy acquired Napster and Dealtree in 2008. The acquisition of Mindshaft followed in 2011 (which was then divested in 2014). But since becoming CEO, Joly has not made a purchase, but Best Buy has divested operations outside North America. INTERNATIONAL EXPANSION THEN RETRENCHMENT Best Buy expanded internationally before refocusing on the North American market, and in 2016 only 8.4 per- cent of its sales were international}18 Its first cross-border expansion was the 2001 acquisition of Futureshop Ltd., a Canadian electronics chain, which added annual sales of $1.32 billion.29 Maintaining Futureshop as a wholly owned subsidiary, Best Buy later strengthened its Canadian presence by opening 77 branded stores of its own.30 Best Buy established an active presence in the growing Asian markets with its 2006 acquisition of a majority interest in the retail chain Jiangsu Five Star Appliance Co., Ltd., China's fourth-largest appliance and consumer- electronics retailer, for $180 million.31 A year later on January 26, 2007, the rst Best Buy store in Chinatouted as the largest Best Buy in existenceopened in Shanghai.32 Other regions quickly followed. By 2008, Best Buy had announced the opening of its first pilot stores in Mexico and Turkey, as well as multiple branded superstores in the United Kingdom and other European countries.33 However, Best Buy exited Turkey in 201 1,34 the United Kingdom in 2011 and all ofEurope in 2013,35 and China in 2014.36 In 2019, Best Buy only had a presence in North America (United States, Canada, and Mexico),37 which is only the second largest consumer electronics market after China?8 LEADERSHIP CHANGES After having just two CEOs in its first 43 years of operations (Richard Schulze and his successor Brad Anderson), Best Buy went through three top leaders in a six-month period in 2012.39 Brian Dunn assumed the helm, in June 2009, and he had been trying to \"right\" Best Buy's \"ship" for three years. Dunn believed that the company's physi- cal stores were an asset: \"There are still things in the physical world that are going to be important: expert advice and the ability to see and touch the latest tablets.\"40 But to cut costs, he announced in 2011 that Best Buy would reduce its \"big box\" real estate by 10 percent over five years by closing some stores, renegotiating leases, and letting some leases expire."l Thousands of workers, including some 600 highly trained Geek Squad staffers, were laid off.42 Moving forward, Dunn planned to open 600 to 800 new Best Buy Mobile stores, focusing on smartphones and other mobile devices.43 The goal was to increase the number of retail points of contact while decreasing square foot- age, thereby increasing the company's flexibility as a multichannel retailer.44 He also increased Best Buy's online offerings hv more than 9.0.000 items tn hrnaden its \"virtual\" fnntm'int.4s Hailing from Nancy, France, Hubert Joly was appointed Best Buy CEO on August 20, 2012.49 In prior jobs, Joly had engineered successful turnaround strategies for Vivendi and Carlson Wagonlit Travel,50 and he saw no reason why Best Buy would be any different. Still, several investors were not happy with his appointment. Some saw J oly's lack of retail experience as a signicant limitation, while others wondered if the company had rushed the search just so it could proceed with its restructuring plan.51 It was not until 2015 that Joly began to win some respect for his turnaround efforts (see Exhibit 2 for Best Buy nancial data). Hubert Joly's success is reected in his selection of Corie Barry as his successor and his continuing as the chairman of the board.52 The Consumer-Electronics Retail Industry A BRIEF HISTORY The consumer-electronics retail industry grew rapidly in the second half of the 20th century due to several converging trends. At the end of World War II, a significant portion of the US. population migrated from cities to suburbs, creating a need for suburban retail centers. At the same time, the cost of technology decreased, cor- responding to an increase in demand for televisions and other consumer electronics. Many of these new customers were price-sensitive, first-time homeowners, who were willing to accept decreased customer service in return for lower prices, leading to a rapid growth in discount stores.53 As the children of the WWII generationthe baby boomersreached adulthood in the 1970s, demand for consumer electronics soared. Retailers shied from carrying just one or two lines of equipment toward stocking a diverse set of product lines. Strong industry growth continued through the late 1980s, until the new VCR market became saturated and a recession slowed consumer sales. By 1991, 98 percent of all homes had at least one-color TV and 77 percent of those that owned TVs also owned a VCR. The United States alone had at least 10,000 radio, television, and consumer-electronics stores that had sprung up to meet the surge in demand. With market satura- tion, however, growth in the 19905 was limited to the replacement and upgrading of existing devices. As a result, competition intensied and many companies, such as Highland Superstores Inc., left the electronics market. Technology advancements and improved economic conditions in the mid- to late-1990s again led to a period of growth that supported the rise of large superstores such as Best Buy and Circuit City. In 1998, sales at Best Buy and Circuit City increased by 21 percent and 48 percent, respectively. It was around this time that the industry faced yet another great shakeupthe birth of online retailing. In 1998, Amazon.com, a new competitor, entered the consumer-electronics market by offering music CD sales online.54 Not willing to cede this potentially lucrative market, Circuit City, Tweeter Home Entertainment Group, and Outpost.com all opened online consumerelectronics sites of their own within the next year. Best Buy followed suit with Bestbuy.com in 2000, making it a relatively late mover in e-retailing.55 However, sales of CDs were deci- mated following the success of Apple's iTunes that allowed consumers to buy only the songs they wanted and play them all on an iPod. The ability to reach new consumers online, coupled with increased interest in digital cameras and DVDs, led to yet another period of rapid expansion throughout the early 2000s. This time, however, growth occurred primar- ily through acquisitions and industry consolidation. From 1994 to 2007, the three largest consumer-electronics retailers (Circuit City, Best Buy, and Radio Shack) consolidated their combined market share from approximately 22 percent to 45 percent. Meanwhile, the total number of rms in electronics retailing with over 100 employees declined by four percent per annum from 1998 to 2004.56 From 2005 to 2007, the industry compound annual growth rate (CAGR) was approximately six percent. With the onset of the global recession, growth fell to 3.4 percent in 2008 and - 0.4 percent in 2009.57 The industry started to recover in 2010 but growth remained relatively flat for the next several years.\" Since 2015, sales of consumer electronics in North America has grown and it is projected to continue growing but at a slower rate (see Exhibit 3). In 2017, the average revenue per customer purchasing consumer electronics was $189.02, and that has largely held steady in 2019 at $191.60 in 2019.59 The most popular products include laptops, memory cards, Bluetooth speakers/headphones, smart televisions, wireless earphones, USB drives, and voice-activated speakers.60 Further, the largest customer demographic is 25 to 34 years old.61 Exhibit 4 shows Best Buy's revenue share in the United States (in percent) in different product and service segments. GENERAL TRENDS The consumer-electronics retail industry is both cyclical and seasonal. Industry sales during the holiday season in the fourth quarter typically exceed sales from the other three quarters combined. As most consumer-electronics items are considered discretionary purchases, sales are directly correlated with macroeconomic factors, including consumer confidence, unemployment, the housing market, and the ability to obtain credit.62 To increase sales in other quarters, Amazon pioneered Prime Day in July, and, while other retailers have imitated it, Amazon still gains more as it drives additional consumers to become Prime subscribers}?3 By 2019, 100 million Americans were signed up for Prime membership (which now costs $1 19 a year). Declining prices place constant pressure on consumer-electronics manufacturers to improve functionality, por- tability, and style as a way of differentiating their products from competitors. As a result, the product life cycle has grown increasingly shorter as manufacturers cannibalize their own products in an effort to maintain customer inter- est and loyalty. One way that Best Buy has adapted to lower prices is to develop private label products. For example, under its Insignia brand of televisions, Best Buy builds televisions based on the leftover parts from manufacturers for a prior year.64 Best Buy has a portfolio of other private-label brands (i.e., Dynex, Init, Rocketsh, Geek Squad) as part of Best Buy's defense against online competitors.65 Dynex involves a variety of economically priced com- puter and entertainment accessories such as storage media, data and power cables, webcams, and ofce supplies, ment out of landlls.\" Initially, its recycling program turned a prot, but lower commodity prices lowered revenues and higher costs led it to charge $25 to recycle televisions and computer monitors in 2016 so the recycling program could break even.63 An advantage of the recycling program is that dropping off out-of-date electronics still brings customers to Best Buy's stores. Another adaptation by Best Buy is to offer customers the ability to \"trade in\" older products for new ones that helps drive additional sales.69 A distinctive trend in the consumer-electronics industry is that of ever-falling prices. Product and part cannibal- ization has led to the evolution of consumer electronics as a measure of socioeconomic status in countries, such as the United States. Financial wealth buys access to the latest and greatest technology. As prices fall, the technology becomes affordable to a wider demographic, but the technological elite have already moved on to the next genera- tion of devices. Cellular phones were once fantasy gadgets seen only in James Bond movies. In the 1980s, yuppies proudly displayed their cell phones on their belts as a status symbol. These days, nearly everyone has a cell phone whose design and functionality make early \"dinosaur\" phones laughable, making mobile the product category with the fastest refresh of products.70 Laptops, large-screen TVs, and smartphones have enjoyed a similar proliferation among the masses, and laptops remain relevant due to businesses and gaming. Still, today's must-have is tomor- row's bargain commodity at Walmart, so retailers must strike while the product is hot. A product will, in its boom days, attract a very different clientele than in the later, less-exclusive phases of its shelflife. Additionally, Apple for- ward integrated into consumer electronics by developing Apple stores in 2001. Apple stores continue to dominant the eld with one of the most profitable per square in the entire retail industry. Past and Current Competitors The consumer-electronics retail industry has consolidated. Prior to the 2008 recession, the top three consumer- electronics retailers (Circuit City, Best Buy, and Radio Shack) accounted for 42 percent of the U.S. market. In comparison, the top three rms in home improvement and ofce supply retail controlled 58 percent and 79 per- cent, respectively. However, by 2016, Best Buy had the largest with over 20 percent of the U.S. market, followed by Amazon, which is nearing 20 percent market share and will likely overtake Best Buy as market leader.\" Amazon has already passed Walmart in consumer electronic sales, as well as the sales of consumer electronic companies, including Hewlett Packard, Dell, and Apple (Exhibit 5 shows consumer electronics market share in the United States of the top-three companies).72 Online sales, moreover, are representing an increasing share of total con- sumer electronic sales. In 2019, the top five online consumer electronics retailers were Amazon, Apple, Best Buy, Walmart, and Dell.\" AMAZON.COM Founded in 1994 by Jeffrey Bezos as an online book retailer, and, since the company went public in 1997, it has rapidly diversied into multiple product areas.\" In 1998, Amazon.com launched its online music and video store and began to sell toys as well as consumer electronics; it added clothing in 2002, health and personal care items in 2003, and beauty products in 2004.98 Amazon opened its marketplace to third-party vendors through the launch of its \"Fulllment by Amazon\" service in 2006. This move enabled small to medium-sized businesses to utilize Amazon's order fulfillment and customer service infrastructure while further broadening Amazon's own online presence.\" More recently, Amazon has extended its vast array of products and services beyond traditional retail boundaries by offering Amazon Web Services. Its foray into cloud computing includes both infrastructure (e.g., data storage) and applications such as database services and workflow software.100 At the same time, Amazon has engaged in an aggressive string of acquisitions, purchasing, or investing in more than '70 companies since 1998. Some of these deals are aimed at increasing the breadth of products offered, such as Amazon's acquisition of Zappos, the number-one online shoe retailer, for $890 million in 2009. Others, such as the 2012 purchase of Kiva Systems, a robotics company, are intended to enhance Amazon's business operations.101 Importantly, the company has ample amounts of cash, as well as ready access to affordable debt, to continue its buying spree well into the future. Another prong of Amazon's expansion strategy has been to enter the electronic device market directly, through the manufacture and sale of its Amazon Kindle e-reader series, tablets, and the Amazon Echo and Dot featuring its Alexa digital assistant. As opposed to merely selling electronic books for customers to read on competitors' technology (e.g., the iPad), Amazon now can influence the development of both the content and the underlying technology. The idea is to create an interlocking ecosystem that enhances sales in both categories, enabling it to compete more directly with Apple. While the theory seems sound, Amazon's tablet and smartphone devices have struggled to gain a foothold in the market beyond tablets and Amazon's initial lead in home speakers featuring a digital assistant is under attack by both Google and Apple. Amazon's competitive advantage comes from its breadth of selection, the convenience of online shopping cou- pled with same-day delivery services, and its ability to undercut competitors on price. Until its 2017 purchase of Whole Foods,102 Amazon's lack of physical stores avoided the costs of retail real estate, inventory displays, and an onsite sales force. The purchase followed Amazon collecting sales tax on purchases in all 50 states in 201?.103 Still, traditional retailers, such as Best Buy, are frustrated to find that their stores are increasingly serving as showrooms for Amazon buyers. People come in to Best Buy to try out the merchandise and speak with the trained sales asso- ciates, but then utilize their smartphones to compare prices and purchase directly from Amazon if its prices are lower.104 Amazon's strategy appears to be working, as it accounts for 43 percent of all online sales,\" and it only lags Best Buy in overall consumer electronic sales.106 APPLE By 2019, Apple has rolled out over 500 of its own retail stores worldwide, creating direct competition for Best Buy and other rms that carry Apple products. Apple stores have greater revenue per square foot than any other retail location.108 In addition to providing consumers with hands-on access to the latest iPods, iPads, iPhones, and Macs, Apple's retail stores offer one-to-one tech support, as well as a variety of training workshops and youth programs. Apple places its stores in high-prole, high-trafc locations in quality shopping malls and districts, with the goal of attracting new customers and providing a customized shopping experience. Management believes that direct customer contact is useful in demonstrating the superior quality of Apple's products. All of this requires a significant investment in property (leaseholds), equipment, information systems, inventory, and personnel. Still, Apple has partnered with Best Buy to leverage its retail locations, and in 2019 expanded its partnership to allow Best Buy to repair iPhones and other productsm 10? Apple continues to provide solid returns, and, in August 2018, it became the rst company to have a $1 trillion valuation, but the rm's value has subsequently fallen and it has been surpassed by others.110 Investor concerns relate to Apple's reliance on iPhone sales.111 However, in 2019, the majority of Apple's revenue came from prod- ucts and services other than the iPhone.112 Still, the company was more diversied under Steve Jobs with revenue coming from multiple products and international markets. Meanwhile, Apple has become more dependent on the North American market as it faces increased competition from China. The impact is best seen in Apple's sales in China continue to fall due to domestic competitors, such as Huawei.113 Perhaps Apple's greatest challenge involves investors and consumers having big expectations. TARGET Target is the second-largest discount retailer in the United States, behind Walmart. Target was founded in 1962, when Dayton's, a Minneapolis department store, expanded into a shopping mall in Roseville, Minnesota. The store was named Target, to distinguish the discount retailer from Dayton's higher-end stores. From 1970 to 1990, Target grew from 24 to 420 stores through organic and inorganic growth, becoming the leading brand in the Dayton Hudson Corporation portfolio in 1977. In 1998, Dayton Hudson increased the company's Internet pres- ence through the purchase of Rivertown Trading. In 2001, Target ended a partnership with Amazon started in 2006 that leveraged Amazon's e-commerce technology to compete more effectively online.114 In 2017, Target's online sales were only 4.3 percent of sales, but it was the only source of growth in sales.115 Following Circuit City's collapse, Target increased its consumerelectronics offerings, including TVs and video games. Changes included the installation of new TVmerchandising walls to make side-byside comparisons easier for customers, as well as expanding store inventory to include larger and more technologically advanced TV sets. At the same time, Target enlarged its video game section by a third and added demo stations for players to try out new releases. Target was also the first physical retailer to carry Amazon's Kindle e-book reader. The company added a TV delivery and installation service in January 2010,116 and in 2011 unveiled three new consumer-electronics DELL For Best Buy, Dell represents both a vendor and a competitor, showcasing complicated competitive dynamics in consumer electronics. Named for its founder, Michael Dell, Dell pioneered selling computer electronics onlinc through a direct sales model that allows customers to custom order computers.121 The direct sales model was key to Dell's success, but after returning as CEO following taking Dell private in 2013, Michael Dell has signaled that the firm may need to change its business model.122 This reflects that, in addition to direct sales, Dell (off and on) has built standard versions of its products to use excess inventory and maintain capacity utilization that it offers to retailers. For example, in 2007, Dell started selling its branded computers through Best Buy.123 The electron- ics division of Dell is now a subsidiary of Dell Technologies, a newly formed company and taken public in 2016, focusing on personal computers and laptops but also business software offerings such as computer and network security, among other service offerings. In 2019, Best Buy offers Dell laptops, desktops, monitors and other con- sumer electronics.124 Continuing Best Buy's Comeback? After taking over Best Buy, CEO Joly labelled his turnaround strategy \"Renew Blue" that focused a value propo- sition through providing \"advice, service and convenience at competitive prices.\"125 Further, Joly emphasized ve pillars directed toward Best Buy's ve main stakeholder groups: customers, employees, supply chain partners, investors, and the broader community. He also picked his successor, Corie Barry who spent two decades working at Best Buy, and Joly will remain chairman,126 suggesting no big shifts in strategy\"? However, will continuing with past efforts be sufcient as the consumer electronics marketplace continues to change? Understanding what may happen requires considering Best Buy's relationship with its stakeholders, beginning with its customers. CUSTOMER EXPERIENCE Best Buy's strategy had long been characterized by a commitment to customer-centricity attained through in-depth data analysis and systematic customer segmentation. The term customer-centricity indicates a business orientation that caters to specific customer needs and behaviors. Compared to traditional product-centered market- ing, customer-centricity looks at a business from the \"outside in,\" asking what problems its customers are facing, and then providing solutions.123 The rm then customizes sales strategies to appeal to the more lucrative customer segments (\"angels\") and to discourage the \"devils\" who actually cost the store money (i.e., buying returned mer- chandise, loading up on loss leaders, and so on).]29 Through market research, Best Buy identied four overarching segments that accounted for 90 percent of its customer base: Urban Trendsetters, Upscale Suburban, Empty Nesters, and Middle America. Each was associated with a male and a female persona that encompassed all of the associated customer characteristics.130 For example, \"Jill\" was an \"Upscale Suburban\" mom who appreciates personal shopping assistants who can help her nd the LEADERSHIP TEAM AND EMPLOYEES Top management team. One of J oly's first objectives was to create a top management team with the neces sary expertise and passion for leading Best Buy's transformation, and that appears successful. As a result of both planned and unplanned departures, Joly shared leadership responsibilities with an almost entirely new cast of char- acters (only General Counsel Keith Nelson remained from the prior administration). Sharon McCollam joined Best Buy, in December 2012, as the company's new chief administrative and chief nancial ofcer, with respon- sibility for all global nancial activities. Sharon was regarded highly for her skills as a cross-functional leader and her track record of producing strong nancial results.135 Sharon was later replaced in 201? as CFO by now CEO Corie Barry, when she was a 16-year-Best Buy veteran, under an internal succession.\"6 Matt Furman, Chief Communications and Public Affairs Ofcer, also came on staff in 2012. He previously served as the vice president of corporate affairs at Mars Chocolate, with prior communications experience at Google, CNN, and in two high prole political administrations\"? In 2014, Greg Revelle joined Best Buy as its chief marketing ofcer, and Mary Lou Kelley became the president of ecommerce. However, by 2017, both had left Best Buy under a reorganiza tion.138 Greg left to become the chief marketing officer at Kohls another struggling retailer139 and he was replaced byAllison Peterson.140 Meanwhile, Best Buy combined marketing with merchandizing, under Mike Mohan, as Best Buy's vendors helped cover its marketing costs.141 Additionally, Shari Ballard became the president of U.S. retail and chief human resources ofcer in 2013, but left that position in 2018142 and was replaced by Kamy Scarlett. 14' Employees. To create a truly unique, multichannel customer experience, Best Buy relies on an educated and motivated sales force. The \"Blue Shirts\" had played a key role in the battle for market share against Circuit City, and they have remained part of Best Buy's success. This reflects an investment in training to have knowledgeable employees that attract customers.144 Through its employees, Best Buy has evolved how it sells products and expand what the rm sells.145 For example, Best Buy, in 2017, rolled out sending Best Buy employees to customers' homes for free to make product recommendations.146 The result of investing in employees clearly paid off for Best Buy. \"7 VENDORS With its physical presence, Best Buy can offer customers the chance to try these vendors' products out in real-ife, facilitating purchase decisions.148 In addition, highly trained salespeople provide a level of product support that is generally not available through online channels.149 Beyond the terms of any revenue sharing agreements, Best Buy benets from increased store trafc and the positive buzz surrounding much anticipated new products. In 2015, Best Buy worked with vendors to create stores within a store that allocated floor space to a single ven- dor.150 Having such exclusives not only protects against showrooming, but also helps the company compete more effectively against competitors with their own branded products.\"1 In an interesting twist on that idea, Best Buy announced a deal to place its own licensed stores inside Macy's locations, as part of its effort to enter consumer electronics.1 '2