Business Development - Competition Details
It's especially difficult when Best Buy faces serious competition from other big retailers like Walmart, Costco, and Target, and even more so from big online retailers like Amazon. Best Buy's business model is under attack. Since they can't compete on price (because competitors like Costco sell electronics at deep discounts, i.e. loss leaders, so that customers will buy other higher margin products along with the loss leading electronics they buy), they must come up with another strategy to compete in the long term.
One such strategy is offering a service like the Geek Squad to bundle with their product sales. But technology is getting easier and easier to use, so even that service faces some long term challenges.
Best Buy needs a new sustainable business model for the future. How can Best Buy leverage their existing assets/capabilities to drive value into the future? How can they stay competitive and profitable? They have great assets like real estate, a well trained workforce, good retail expertise (vendor/merchant relations, etc), the Geek Squad, tons of cash, and a very strong brand. But what to do with these assets in order to stay competitive in the future?
We are looking for great, actionable ideas for Best Buy. How can Best Buy take their current assets and re-innovate? What opportunities are out there for Best Buy? One example would be for Best Buy to sell electric cars in their retail space (which they are experimenting with). Another example would be for Best Buy to improve their online experience. But how?
Bring us your best ideas for Best Buy and we will make sure to get them in front of our friends at Best Buy.
Best of luck!
The IM team.
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i) Lastly, if there are duplicate identical ideas posted for any one challenge, the first member to post the idea will get the credit.