Assignment task: Best Buy is the company.
Using the information below, provide an explanation of how key international aspects impact the problems and ultimately the business. (Please number the responses accordingly/use bullet points for each numbered problem.)
Perceived Problems:
1. Tough Competition: Best Buy confronts tremendous rivalry from both brick-and-mortar stores, such as Walmart and Target, and online merchants, such as Amazon. Intense competition has led to diminishing sales and profit margins in recent years.
2. Consumer Shifts: There has been a shift in consumer behavior towards internet buying and away from brick-and-mortar establishments. This has led to a reduction in foot traffic at Best Buy locations and a shift in sales towards online channels.
3. Dependency on Important Products: Best Buy has a considerable dependence on key products such as mobile phones and televisions for a substantial amount of their sales. This dependence puts the company at risk if there is a movement in consumer demand away from these products.