Question
Best Buy is by far the largest consumer electronics retailer in the world with sales of over $45 billion and almost 4,000 stores world wide.
Best Buy is by far the largest consumer electronics retailer in the world with sales of over $45 billion and almost 4,000 stores world wide. Best Buy enjoys tremendous power in the marketing channels within which it operates. All manufacturers and other suppliers providing products to Best Buy have to pay close attention to what this 1,000 pound gorilla of a retailer wants. But even when suppliers go out of their way to meet the demands of Best Buy, they are finding that the giant retailer could block them from getting their products to consumers because Best Buy may favor certain suppliers with which it can make especially attractive deals. In addition, Best Buy is increasing its emphasis on offering its own private brand products such as the thinnest laptop on the market and an all-electrical motorcycle. Some of Best Buy's own products may even compete directly with famous supplier brands, such as Apple and Sony.
Why do you think Best Buy is flexing its muscles in the channel? Do you think this type of behavior is inevitable on the part of giant dominant retailers?
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