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Best Buy is the largest consumer electronics retailer in the United States, with 2009 sales of nearly $45 billion. The company competes aggressively on
Best Buy is the largest consumer electronics retailer in the United States, with 2009 sales of nearly $45 billion. The company competes aggressively on price with such rivals as Costco Wholesale, Sam's Club, Walmart, and Tar- get, but it is also known by consumers for its first-rate customer service. Best Buy customers have commented that the retailer's sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, MP3 players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech sup- port and installation services are additional customer service features that are valued by many customers. How would you characterize Best Buy's competi- tive strategy? Should it be classified as a low-cost provider strategy? A differ- entiation strategy? A best-cost strategy? Explain your answer.
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