Executive Briefings

Rumors of Best Buy's Imminent Demise May Be Highly Exaggerated

Best Buy is viewed by many analysts as being in a desperate fight for its life. In previous years its stellar financial results were strongly fueled by the collapse of such competitors as PC America and Circuit city. But now Best Buy is the last man standing and its survival is entirely dependent on its own efforts to respond to marketplace shifts.

These shifts include the dematerializing of once strong product lines (CDs and DVDs, for example, which have largely become digital), commoditization (TVs, laptops and home computers, which are found everywhere and purchased at margin killing prices), and the emergence of a highly promotional environment where competitors are always making creative offers.

The current distress at Best Buy appears to be a classic case of a company facing merciless head winds and founding in rough seas. To many experts the survival of Best Buy is at stake.

But Best Buy is not a one-trick pony.

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Keywords: Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, Retail, High-Tech/Electronics

These shifts include the dematerializing of once strong product lines (CDs and DVDs, for example, which have largely become digital), commoditization (TVs, laptops and home computers, which are found everywhere and purchased at margin killing prices), and the emergence of a highly promotional environment where competitors are always making creative offers.

The current distress at Best Buy appears to be a classic case of a company facing merciless head winds and founding in rough seas. To many experts the survival of Best Buy is at stake.

But Best Buy is not a one-trick pony.

Read Full Article


Keywords: Business Strategy Alignment, Supply Chain Analysis & Consulting, Global Supply Chain Management, Retail, High-Tech/Electronics