Business Development - Competition Details

TITLE
The Future of Best Buy
SPONSOR
Idea Marketplace
DEADLINE
Mar 10, 2014
PRIZE
Market Price
INTRO
Best Buy's business model may be dying. After the fall of Circuit City, the future of the entire retail electronics category is in jeopardy. Best Buy needs to re-innovate. Can you help?
DESCRIPTION
Best Buy is a big consumer electronics retailer. As such, they have serious exposure to the product innovation cycle. People tend to want to buy new products, and Best Buy is there is help them do that. But how many more flat screen televisions can one retailer sell? It's hard to remain profitable in an environment that relies on continuously selling new electronics.

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.
TERMS AND CONDITIONS

Idea Marketplace often sponsors its own Competitions targeting the needs of individual businesses all the way to entire industries.  These Competitions sponsored by Idea Marketplace are in no way endorsed, affiliated, or sponsored by the companies or industries we target.  We, as a company, have identified these needs on our own and manage the Competitions privately within Idea Marketplace.  When members of our community submit enough high quality, innovative content to address the need (or solve the problem), we then actively attempt to sell that content, for its fair market value, to potential interested parties.  Idea Marketplace will exercise its best efforts to negotiate the highest possible price for this material.  We only charge for, and members only get compensated for, the specific material that gets used/purchased by the buyer of the material (as determined by the buyer). 

If a member’s submission is not a part of this winning material, he/she will not get compensated for his/her material.  Winning members will be compensated per piece of purchased content/material.  Idea Marketplace then splits the sale price 90/10 with the winning member or members (viz., the content provider receives 90% of the sale price and Idea Marketplace receives 10% of that price).  In the event an interested party identifies multiple equal ‘winners’, we will distribute the sale price evenly among those identified winners. 

Disclaimers:

a)  Idea Marketplace cannot guarantee it will find a buyer for the material members provide, nor can it guarantee any member will get paid for the material provided. 

b)  Idea Marketplace cannot guarantee how much a member will get paid for any material provided before it is actually sold.

c)  Members who submit material to be sold in any given Competition sponsored by Idea Marketplace will accept whatever price Idea Marketplace is able to negotiate for the material submitted. 

d)  Idea Marketplace cannot guarantee how many, if any, winners there will be for any given Competition. 

e)  Idea Marketplace will not be held liable or accountable for any material that does not get purchased or used.

f)   Idea Marketplace will not be held liable or accountable for any material that gets used or sold other than the compensation for the sale, in the event the material does get sold. 

g)  Idea Marketplace’s business model depends on our exercising our best efforts to protect our members and the material they submit but it will not, under any circumstances, be held liable for any material submitted to us. 

h)  Both buyers and suppliers of material are subject to Idea Marketplace’s Terms of Service. 

i)   Lastly, if there are duplicate identical ideas posted for any one challenge, the first member to post the idea will get the credit.