Best Buy Company

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Market study helps the company understand business opportunities or failures. Best Buy is a multinational company that carries consumer electronic devices, appliances, mobile phones, and services. It has been successfully operating in all the states and territories of the United States since 1986 but has only started international operations in 2002. Today, it operates in Europe, Mexico, Canada and China under different brands. The company has achieved growth thru mergers and acquisitions, particularly in its international segments. Cost of goods sold is reportedly high in these areas since it entails a lot of maintenance costs. For the past 2 years sales and income have been declining in the international segments while US sales are flat. Business opportunities are seen in the global atmosphere, while opportunities for domestic remain in technology and services. Competitions are taking advantage of their presence in the internet and continue to earn higher income and profits. Amazon and eBay for instance re online retailers that earns high income from internet sales. The declining income of BBC is an eye opener to look if its present business strategies need to be reviewed and changed. Market Report on Best Buy Company I. … Particularly, its goal is emphasized in its strategies: to increase market share, to attain international growth, increase efficiency and to connect to the world. 1.2 Products Best Buy’s stores sell the following items: Consumer electronics, home office, entertainment software, appliances, and services. Consumer electronics consist of video and audio products, TVs, and MP3 players. Home office products include personal computers, cell phones, cable and internet service plan. Entertainment software includes products such as video games, CDS, video games, and computer software. Technology, service and repair. Other segments that offers food and beverages. Source: United States SEC Best Buy Form 10-K Annual Report 1.3 Geographic location Company operates locally in all the states and territories of the United States, while its international scope consists of China, all of European territories, Mexico, and Canada. 1.4 Strategies Strategies that helped company grow are by acquisitions and expansion. The company was incorporated in 1966 with the name Sound of Music Inc. but changed name to Best Buy in 1983. From this beginning it has grown and expanded thru mergers and acquisitions that made an impact of its presence in electronics, entertainment and technological services in the United States. Organic growth began in 2009 when it took advantage of the bankruptcy of Circuit City to serve the market share of the electronics consumers of the industry which was left open by the bankrupt company (University of Oregon Investment Group , Jan 8, 2011 pdf). The international segment started in 2002 through acquisition of established brands in Canada. Its presence in China