Case study on Bestbuy from HBR Example | Topics and Well Written Essays - 1000 words

On Bestbuy from HBR - Case Study Example Problems continued to increase after a tornado hit the company in 1981 forcing Schulze to shift his strategic plan from services to discounted brands. Eventually, he ventured into superstores in 1983 and thus, rebranded the business Best Buy (2). Best Buy faces stiff competition both locally and globally from these chains necessitating it to initiate different strategies to cope with competition. The company partnered and acquired different businesses in a bid to expand its market share and product lines to increase its revenue base and gain the competitive advantage over the rival firm Wal-Mart. The company acquired Pacific Sales Kitchen, partnered with Carphone Warehouse, Dell, Apple, Napster Inc., Jiangsu Five Star Appliance Co. among much other business in the U.S., Europe, Canada and China (5). Conversely, due to competition and the changing market environment, the company has experienced fluctuating revenues and net profits. For instance, in 2009 due to pressure from rivals, the company’s operating profits declined to $2.0 billion up from $2.2 billion in 2008, despite a growth in sales. Similarly, in the fiscal year 2012, the company’s stock closed at $24.70 up from $ 56.86-year-end close in 2006 resulting in approximately 55% loss in market capitalization (1). The electronics industry is a competitive market with some of the world’s well-established retail chains and superstores such as Wal-Mart. This has resulted in Best Buy losing its market share gradually to online retailers such as Amazon and discounters (1). Best Buy can leverage from greater international expansion, The Company has penetrated international markets over the years through partnerships and acquisitions of other businesses, which has enabled it to open new stores in these markets.