statement: Best Buy is one of the largest consumer electronics retailers with 3.2% market share of the global computer and electronics market. After 2000, the company tries to grew in different fronts through acquisitions such as targeting a high-end customer by acquiring (Magnolia), more market penetration (Musicland), computer-support services (Geek Squad), and digital music (Napster). BestBuy offer Geek Squad support services in all stores. some acquired companies (Geek Squad) has a rapid expansion other has been divested like Musicland. Internationally store sales varied from country to country. Best buy faces cut-throat competitions from other 'bricks and mortal' retails such as Walmart, target and ecommerce companies ( amazon) thus it needs to use aggressive strategies in order to win more marketplace and avoid following other national consumer electronics retail superstores into extinction. Best buy's online business which was the eleventh largest e-commerce site worldwide and was growing buy 15 to 20 percent each quarter. (sales from online is just 10% of total sales). To remain competitive in online electronic segment and to avoid using its stores as showrooms for Amazon buyer, Best Buy implemented enhanced price matching policy. Current Strategy: Since 2012, the new CEO Hubert Joly turnaround plan has succeeded to put the company on a solid base. The renew blue strategy improved Best Buy's negative comps and decaling margins. The company Strategy focused on 'customer-centricity' which provide \"advise, service and convenience at competitive prices\". Now, the company need to focus on profitable growth and continuing to improve margins. that is by improving its performance and making BestBuy the preferred brand and destination for technology products. External analysis General environment Economy: North American slow economic recovery created uncertainty, consumers have more disposable income but they become more price-conscious. Electronic retailers are seasonal business and relies heavily o revenues gained during holiday shopping season. Online businesses put retailers under pressure and force them to reduce its margin. Socio-cultural: customers become more discreet and sophisticated specially on electronic devises. electronic product life cycle continues to grow shorter, and that force retailers to improve its inventory turnover to accommodate rapid change in electronic demand. In addition to that customers use the traditional 'bricks and mortar' retail stores as showrooms to analyse the products and then purchased them online. Technological: smartphone's mobile purchasing capability is pushing boundaries between online and offline retail. Consumers have twenty-four hours' access to stores by literarily just reaching into their pockets. Industry environment Electronic retail industry is very effected by the economic factors such as consumer confidence, unemployment, the housing market, and the ability to obtain credit. Porter five : Supplier power (Moderate): Even though, the industry relies on enumerated suppliers, the retailers economy of scale made supplier to rely more on their network to sell their products. That made both stakeholders act as partners, aiming to help each other to improve performance in order to have a positive effect on the whole supply chain. Buyer power (High): The main customers of the industry are individuals who use electronics for entertainment, leisure or business. Most of the products are undifferentiated and are available in other retail stores or online. Online tools provide customers with near perfect information about price availability from competitors. Moreover, costumer become price sensitive and their power has been increasing. Competitor Rivalry (Extremely High): Competition in the industry is cut-throat. A strong price competition from 'brick and mortar' retailers and online operators pushes every players to reduce profit margins. Due to the wide selection and similarity of consumer electronics products offered by all competitors, there is low customer retention and strong competition for maintaining their market share. Rivals in the industry are competing on many fronts, players offer both convenient physical locations as well as an online presence. Threat of substitution (Low): That no one go to retailers to buy electronics and they depends more on online purchase. other substitution would be that main suppliers as Samsung, Sony, Panasonic if they start depending more on opening their own shop as apple has done. that force all big players to keep their eyes suppliers as well. threat of new entry: (Low-Medium): Establish a retail store is both capital and resource intensive. A large amount of investment is required to rent a large space in a prime location and maintain inventories. Leaders players in the markets spend millions of dollars every year on property, equipment and infrastructure to capture or maintain market share. In the other hand, even though, it is relatively easy to set up a website and start selling electronic products, there is many factors creates a considerable barrier for new entry such as costly advertising, difficult to achieve efficient logistic and fast delivery. Competitor environment Best Buy operates in a highly-competitive industry. the company's primary competitors are consumer electronics retailers, such as Walmart, Target and Internet-based businesses, such as Amazon. The bigger impact comes from online competitors since online businesses have advantages such as exempting from sales' tax and retail real estate' lease costs. All other big retailers are in the online business. After the collapse of Circuit Circle all big players in the market used an aggressive price policy to attract the extra customers that Circuit Circle has left, trying to increase their market share . Walmart: the largest retailer in the world and the leading discount retailer, Walmart is able to maintain low prices strategy du to its strong supply chain management and logistic efficiency. One of the company competitive advantages is provide a one place with wide range of products that customers can visit to get all their daily need with low prices. Amazon.com: beside it is the biggest e-commerce retailer, the company diversified into other fronts by providing its platforms and its infrastructure to third party. The company core competencies rely on fast delivery, user friendly website, technological infrastructure, data and financial capability. Apple: the company exploit the huge success of its product (IPod, IPhone and IPad) and the virtual store (ITunes, App Store) , apple store sell only apple products . the company control its whole supply chain starting from manufacturing ending with sales (by its stores and other retailers) coupled with controlling the subsidiary products as well. apple represent a threat that any supplier would take in the future trying to have direct connections with its customers in a way to avoid the middle stakeholder which is the retailer. Target: the company targets more middle and upper class customers that is likely enhanced service offering, targeting a more diverse customer base. the company' core competencies come from its digital capabilities and experimenting with smaller format stores in urban environment. Target allow consumers to \"test drive\" the technology before buying, that is a double-edge sword. Even though customers would come more frequently to Target's stores to try new products, they may buy them online after the 'test drive' Internal analysis Best Buy works to beat its competitors by providing excellent customer service and in store experience through price match. Changing the previous (Results Only Work Environment ( ROWE)) to a culture that encompassed accountability. In order to have all employees on board. a) Resources Tangible: main store + acquisitions, employees, customer data info, finance Intangible: brand equity ,reputation, Employee knowledge, multiple brand names. b) Capabilities : knowledgeable staff, create value to customer by provide a better services and support service c) Core competencies : the mix of \"Expert Service, Unbeatable Prices\" provides a clear value proposition. Huge presence in north amercia market d) Competitive advantages : no commission, investment in employee training, knowledgeable staff. employees are product experts/ consumer educators, industry-wide strategic target, high economies of scale. Customer-centricity rthough in-depth dat analysis and systematic customer segmentation e) Evaluation of current position : f) Corporate and business level strategies Alternatives The availability of online information andpricing perpetuates the behavior known in the industry as showrooming. To fend offshowrooming the industry has been implementing price-matching policies for online or retailstores4 1- Focus more on online sales: (increasing by time . less cost , need efficient operation management , easy to reach wide customer) and try to expand internationally more. Enhance their website and make more user friendly With the focus on virtual products , (books, music, video games, computer software ect) 15.7% of the total market ($ 524.2 Billion) in 2011 was attributed to Music and video and games) Extend the Geek squad experience to the online . ( provid services and consulting regarding any issue ) 1 Increase the traffic on the website in order to convert more visit into sales. Leverage its customer -centricity . Expand into international market We expect online retail sales in Asia Pacific Australia, China, India, Japan, and South Korea to reach $1.4 trillion by 2020, growing at a compound annual growth rate (CAGR) of 14.3% over the next five years. The company need to improve its inventory turnover to accommodate rapid changes in electronics Using best biy as a showroom to the company website Loyalty programme by provides bestbuy services and support service at discount to customer who are in the programme . point system to reward volume purchasing , Employ a new search platform Develop easy process to supplementary products and services. Such as warranties and support. Increase product mix and product detail information. 2- Diversification , devides shoppes under defferent names: The company need to understand the consumer demand a. shops to high end customer who are looking for products with excellent customer ( some exclusive brands coupled with the other brand. ( feel the customer the difference ) b. other shop as big box store and support of online sales ( technology become more affordable ) 3- strong relation with supplier: the electronic retailer in general and best buy get benefit from different era such as ( intrest in digital cameras and DVDs ) then ( smart phone era) invest with new the price war between retailers effect product manufacturers and place presuure on them to improve functionality , protabiliy and style as a way of fdifferentiating their products from thos of competitors and the whole supply chain stakeholders expansion strategy . by enter the electronic device market directly. Through the manfacture and sale. 4- stay with the same strategy and diversify their investment looking form new opportunities in different market that can get synergy with them . such as (furniture , office ) and keep acquiring other companies acquisition Recommendation : the first alternative : improve online business. SWOT Strong: differentiation strategy Knowledgeable staff Expansive reach & financial performance through acquisition Customer information database Estensive level of service. Large domestic presence, strong market presence and wide consumer base provie competitive advantage Weak: decline in operating margins. New management Best buy are frustrated to find that their stroes are increasingly serving as showrooms for amazon buyers. Threat: Manufacturers direct to consumers. (apple) Intense competition from online retailer and cost leaders (amazon & Walmart) Price-matching programs- reduces margins Showrooming Opportunities : E-commerce and online sales Higher penetration of exclusive brands International growth market ( far east countries) Reduce real estate -mobile stores More product in the store , create synergy Key success factors: Source Cost Data Advantage Brand Image Growth Risk New t op management that could lead to not understand the game