Problem 1: Best Buy is the largest consumer electronics retailer in the United States with 2021 sales of more than $47 billion. The company competes aggressively on price with rivals such as Costco Wholesale, Sam's Club, Walmart, and Target, but is also known by consumers for its first-rate customer service. Best Buy customers have commented that the retailer's sales staff is exceptionally knowledgeable about products and can direct the customer to the exact location of difficult to find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features valued by many customers.
- How would you characterize Best Buy's competitive strategy?
- Should it be classified as a low-cost provider strategy?
- A differentiation strategy?
- A best-cost strategy?
- Explain your answer.
- Comment on, or make suggestions about at least two of your classmates' characterization of Best Buy's competitive strategy.
Problem 2: One of the competitive strategies to consider is whether to be a "first-mover," "first-follower," or "slow-mover." Search for and select two companies that have embraced one of these three strategies for the entire company, a product line, or individual product. Each selected company needs to have chosen a different strategy from the other. For example, if you choose a fast-mover company, then select a company using one of the two other competitive strategies.
- Describe what each of companies did with the strategy, why you believe the strategy was chosen, and tell us what your professional opinion is of the results achieved with the strategy.
- Comment on, or make suggestions about at least two of your classmates' analysis of the strategies for the selected companies.