Is it really the ‘Best Buy’?
Stuck in the spiral of self destruction!
Against the expectations of its precious investors, one of the leading and well-established leaders in the retail industry for electronics, Best Buy, has had a disappointing performance in the recent years and this is a cause of concern and is a trepidation for all its stakeholders.
In the article, “Why Best Buy is Going out of Business…Gradually” by Larry Downes, the author highlights that the root cause of Best Buy’s downfall is its failure to keep up with the rapidly advancing industry and new competition. With innovative technology and state-of-the-art after sales services, competitors are eating Best Buy’s lunch. While Best Buy is ignorant and stubborn on holding its old and soon to be obsolete managing strategies, competitors like Amazon are thriving by being flexible with their customers’ demands.
However, external vagaries are not the only factors that are pushing Best Buy into a gloomy future. Best Buy has its own set of flaws, as emphasised by the author “poor inventory management and sales forecasting” is at the core of its problems. By gradually losing customer confidence and loyalty, Best Buy is on its way to doom!
The lack of courage to accept its mistakes and inability to evolve with the industry and its requirements, Best Buy is loosing out on potential market share and expansion opportunities. The article states that Best Buy’s CEO Brian Dunn “has been busy pursuing a strategy of protecting market share over profit” which is reflected in its performance as a business. It is evident that Best Buy has the potential to regain its brand image, market share and customer trust, if only, they are willing to adapt and implement better and more efficient policies.
Best Buy needs to venture before it’s too late!
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