Best Buy Essay
Best Buy Company Profile (A copy/paste from Hoovers. Add other relevant info preferably links we if there is something compelling) The biggest consumer electronics outlet in the US is also the best — Best Buy, that is. The company operates more than 1,400 stores throughout the US and Canada, and another 2,600 stores in Europe and China, mostly under the Best Buy, Best Buy Mobile, and The Car Phone Warehouse banners. The stores sell a variety of electronic gadgets, movies, music, computers, and appliances.
In addition, Best Buy offers installation and maintenance services, technical support, and subscriptions for cell phone and Internet services. As the biggest consumer electronics chain in the US, following the demise of rival Circuit City, Best Buy is looking abroad for growth. In 2011 Best Buy sold Napster to online mp3 store, Rhapsody. Company Overview (Critical most information: IR Ranking, total revenue, online revenue, online revenue trend from last year/qtr number of products, top three competitors) Technology Platforms Item Set Up – Edgenet: http://www. edgenet. om/clients/retailers-a-distributors/best-buy Catalog/Content – CNET: http://cnetcontentsolutions. com/files/ccs_casestudy_bb4b_en. pdf SEO – NA (I couldn’t find it) Management Team (three good contacts is we all we need: SVP/VP Ecommerce, VP Online Merchandising, VP Online Marketing). Directors if we couldn’t find VP’s. Executive| Designation| Email ID| Phone No| LinkedIn Profile | Brian J. Dunn| Chief Executive Officer| brian. [email protected]estbuy. com| (612) 291-5333| Profile| Mike Mohan| Senior Vice President Merchandising| mike. [email protected] com| (612) 291-8663| Profile| Andreas Panayiotou| Senior Vice President US Marketing| andreas. [email protected] com| (612) 291-5333| Profile| Matthew Smith| VP Integrated Marketing| matthew. [email protected] com| (612) 291-5333| Profile| Christine Webster-Moore| Vice President, New Business Customer Solutions| christine. [email protected] com| | Profile| Barry Judge| CMO| barry. [email protected] com| (612) 291-8107| Profile| Tracy Benson| Sr. Director, Digital Marketing, Interactive & Emerging Technologies| tracy. [email protected] com| (612) 291-5333| Profile| Stacy Anderson | Sr. Director, Marketing| stacy. [email protected] com| | Profile| Revenue Size (don’t need it) All values are in billions
Year| 2011| 2010| 2009| 2008| 2007| %Annual Growth| Annual| $50. 27 | $49. 69 | $45. 02 | $40. 02 | $35. 93 | 1. 01| Q1| $16. 26 | $16. 55 | $14. 72 | $13. 42 | $12. 90 | 1. 10| Q2| $10. 94 | $10. 79 | $10. 10 | $8. 99 | $7. 93 | 1. 12| Q3| $11. 35 | $11. 34 | $11. 02 | $9. 80 | $8. 75 | 1. 11| Q4| $12. 10 | $11. 89 | $12. 02 | $11. 50 | $9. 93 | | Important News and Articles (contact related) John Thompson, SVP/GM, BestBuy. com – http://www. internetretailer. com/2011/09/30/best-buy-opens-its-e-commerce-site-other-online-retailers (announced a new marketplace. Buy. com is a participant) https://www. extendingthereach. om/wps/portal Alix Hart, Director Digital Marketing (online mktg, SEO) For the year ended Feb. 26, Best Buy reported: (don’t need most of this) * 2011 web sales of $2. 5 billion, up by 14% from $2. 2 billion in 2010. (this is good) * Total sales were $50. 3 billion, a 1% increase from about $49. 7 billion. * Domestic sales of $37. 2 billion, down by 0. 2% compared with $37. 3 billion. * International sales were $13. 1 billion, up by 5. 6% from $12. 4 billion. * Comparable-store sales, including web and call center, declined year over year 1. 8%. (this is good) * Net income was $1. 27 billion compared with net income of $1. 2 million in 2010. * Comparable-store sales were down 1. 8% year over year. We info need more like this: Best Buy plans to double its e-commerce business (this very important from our perspective) http://www. internetretailer. com/2011/04/14/best-buy-plans-double-its-e-commerce-business Offices (don’t need it. The account plan will go in salesforce so it’s not needed again) Best Buy’s corporate office Best Buy Co. , Inc. 7601 Penn Avenue S. Richfield, MN 55423 (612) 291-1000 Products ; Services (this should be under company up at the top. Important piece of information is number of product categories.
Names and revenue from home brand, if available) * Consumer electronics * Home office products * Entertainment products * Appliances The Company operates retail stores and call centers, and conducts online retail operations Outsourcing History (this is a good section. But we will need to put web links to news and case studies and just mention most important highlights. ) * CNET Content Solutions Enables Best Buy to Expand Market Share into the SMB ; GovEd Segments (content solution for Best Buy Provided By CNET) Other CNET Content Solutions Offerings for Best Buy for Business’s Future Needs. Easy to use multi-vendor selectors that enable buyers to rapidly find the right memory, printer consumable and battery/power accessories. * Intelligent merchandising applications that can enable Best Buy For Business to cross-sell complementary products based on their specific merchandising criteria. * Spanish language product content to support expansion to Puerto Rico. * With Akamai, Best Buy has seen a 20% improvement in the speed of shopping cart transactions. * Akamai helps Best Buy Improve performance of dynamic Content and Application by 80 %. e-retailers participating in Best Buy: (for example the weblink to news about Best Besy’s plan for a marketplace will be good and then list it below as you have) * Buy. com, Wayfair. com, BeachAudio. com, CametaCamera. com, ANTonline. com, Mambate. com, SFplanet. com and ElectronicExpress. com. Latest News (only if it relates to online/ecommerce. Provide a web link and something Best Buy hires XXX for XXX) January 16, 2012: Best Buy Announces Leadership Changes * Shari Ballard to Lead the International Business * Mike Vitelli to Lead the U.
S. Business (this is good but we need to categorize this better, revenue news with revenue and same for everything else) January 06, 2012: Best Buy Reports December Revenue of $8. 4 Billion * Domestic segment online channel sales increased 26 percent * Domestic segment tablets and eReaders comparable store sales each increased low triple-digits * Domestic segment mobile phones comparable store sales increased 20 percent January 10, 2012: Striiv Launches In Select Best Buy Retail Stores * Striiv – Health and Fitness device manufauter Striiv will be featured in Best Buy’s new “Health and Fitness” sections in 43 Best Buy Connected Stores across America. December 13, 2011: Best Buy Reports Fiscal Third Quarter Results (same as above) * Domestic comparable sales and traffic both achieved positive growth * Share repurchases reach $1. 2 billion fiscal year-to-date (don’t need …just appropriate bullet points ) * Third quarter EPS of $0. 42 (adjusted EPS of $0. 47) | Nov. 26, 2011 | Nov. 27, 2010 | Change YOY(Year Over Year)| Revenue(in millions)| $12,099 | $11,890 | 2%| November 07, 2011: Best Buy to Acquire mindSHIFT® Technologies, Inc. or $167 Million * MindSqHIFT is one of the largest IT outsourcing and cloud managed services providers, serving small and mid-size businesses for more than 10 years. * “We are very closely aligned with Best Buy in both corporate vision, and in our culture of integrity, customer value and results,” said Paul Chisholm, chairman and CEO of mindSHIFT. * “There’s no question that acquiring the skills, capabilities and clients of mindSHIFT has the potential to help expand Best Buy’s global services capabilities in the vast small and mid-sized business market,” said George Sherman, senior vice president of Best Buy Services. The Bank Street Group LLC served as Exclusive Financial Advisor to mindSHIFT in connection with this transaction. April 14, 2011: Best Buy Outlines Its Strategy and Actions to Drive Shareholder Value Strategic Priorities (most of the info we don’t need right now) * Access to a larger market. * Best Buy foresees significant incremental opportunity in accessories, content, connections and services. The total current industry opportunity, estimated today at $420 billion, is more than 2. 5x the traditional consumer electronics hardware market. Capturing new growth opportunities in key categories and channels. Significantly expanding Best Buy’s online presence in the United States, with a goal of doubling the current $2 billion online business within 3 to 5 years. (this is good) * Scaling Best Buy Mobile as part of the company’s multi-channel strategy with an estimated total of 600 to 800 Best Buy Mobile stand-alone stores in the United States within five years. * Investing in proven international businesses such as Five Star, our profitable Chinese brand in the Best Buy family. Best Buy expects to grow to 400 to 500 Five Star stores in the next five years.
The company believes it can more than double its revenues in China to $4 billion within five years. Funding growth efforts through structural opportunities. * Maximizing the pricing and assortment across Best Buy’s U. S. channels to drive higher conversion and overall price impression for the brand. * Driving returns in Best Buy’s U. S. stores through specific actions to improve store productivity while increasing points of presence, including an anticipated 10 percent reduction in US “big box” store square footage over the next three to five years, resulting in expected annual savings of $70 million to $80 million, when fully realized. this is good as it means more online + smaller stores) Fiscal 2012 Outlook (don’t need) * Projected 10 million U. S. Connections sold in fiscal 2012, driven primarily by Best Buy Mobile. (“Connections” defined as mobile phone, home broadband, mobile broadband and video service units) * Anticipated free cash flow of $2 billion to $2. 5 billion for fiscal 2012. September 13, 2011: Best Buy Reports Fiscal Second Quarter Results * Strong revenue growth in tablets and appliances; total revenue flat * Share repurchases reach $863 million fiscal year to date | Aug. 7, 2011| Aug. 28, 2010| Change YOY| Revenue(in millions)| $11,347 | $11,339 | 0%| June 14, 2011: Best Buy Reports Fiscal First Quarter Results (only need a link bullet or two related to our ecommerce, otherwise skip all such news. List them under appropriate sections) * Improved sales performance delivered 1. 4 percent revenue growth * Share repurchases exceeded $500 million during the quarter * Strong Domestic mobile phones comparable store sales growth of 28 percent | 28-May-11| May 29, 2010| Change YOY| Revenue(in millions)| $10,940 | $10,787 | 1%|
Ecommerce Initiatives December 13, 2011: Best Buy’s biggest challenge: Nailing that e-commerce (very important and should be up at the top under appropriate section. Best Buy CEO Brian Dunn said, Executed: * We’ve delivered a meaningful increase in our online conversion rate on top of higher customer traffic. * We offered free shipping for all items during the holiday season and were early to the market with this powerful value message. * We’ve more than doubled our online only SKU count to approximately 50,000 products since last year. Future Plan: Running effective promotions across multiple channels; significantly expanding our online assortment; and ensuring we are competitively priced. * We have a target to double our online business in the next three to five years and our third-quarter online sales were a significant driver of the quarter’s total comp growth. September 30, 2011: Best Buy opens its e-commerce site for other online retailers to sell products Important info it should belong with where we have listed Buy. com and other partners. * The big consumer electronics retailer has opened its e-commerce site up to other retailers who want to sell products on BestBuy. om. Best Buy says it expects the move to expand by about 33% the amount of products offered on its site in time for the holiday shopping season * Best Buy Co. Inc. has a new online sales pitch, but this one’s for other retailers: Come to BestBuy. com to sell your stuff (as long as it’s not just like ours). * The consumer electronics retailer last month launched its first e-marketplace, inviting e-retailers to list and sell items on BestBuy. com that the e-retailer doesn’t carry itself. Marketplace sellers are not allowed to sell products that BestBuy. com already offers.
April 14, 2011: Best Buy plans to double its e-commerce business (same as above) * Best Buy plans to double its annual web sales to $4 billion within five years, while reducing bricks-and-mortar store square footage in the next three to five years. The retail chain also plans to open more stores selling mobile phones and service plans. * Best Buy executive vice president Shari Ballard told at company headquarters in Richfield, MN “The company plans to expand on domestic e-commerce success, noting that 60% of Best Buy store purchases are researched online and 40% of online purchases are picked up in stores”.
Opportunity (this is perhaps the most important section for someone who has conducted significant research. We should take the opportunity here a small a paragraph providing recommendations listing most important info we learned in a few bullet points. ) * Best Buy does not match the prices of Internet-only retailers or the website prices of our local retail competitors’ stores. So we have chance to provide price comparison for their million products. * To provide SEO service Awards & recognition * Best Buy was named “Company of the Year” by Forbes magazine in 2004. * Specialty Retailer of the Decade” by Discount Store News in 2001. Ranked in the Top 10 of “America’s Most Generous Corporations” by Forbes magazine in 2005. * Best Buy is ranked # 294 on the 2010 Forbes 2000 List. Competitors | BBY| AMZN| AAPL| WMT| Industry| Market Cap: (in US$)| 8. 57B| 82. 61B| 394. 72B| 204. 97B| 988. 39M| Employees:| 180,000| 33,700| 60,400| 2,100,000| 17. 00K| Qtrly Rev Growth (yoy):| 1. 80%| 43. 90%| 39. 00%| 8. 10%| 11. 40%| Revenue (ttm): (in US$)| 50. 64B| 43. 59B| 108. 25B| 440. 14B| 4. 51B| BBY- Best Buy AMZN – Amazon AAPL- Apple WMT- Wal-Mart Industry- Other Electronic Retailers Subsidiaries Future Shop| Geek Squad| Napster| Magnolia| Speakeasy| | Buy