SWOT Analysis for Best Buy MKTG 1030 Arsen

SWOT Analysis for Best Buy MKTG 1030 Arsen Drljo, Jordan Mc. Cormick, Jason Ramirez

Strengths They have large name brand recognition. They have employees specifically trained for certain products to inform the customers. For example, they have Microsoft specialists and Geek Squad. Easily accessible location, and it can be seen from the freeway. They are open pretty much all day, especially during the holidays which gives them an advantage. They are in a growing market so there is constant product flowing and money to be made.

Weaknesses. Best Buy does not always have their products in-store, because they warehouse most of their products, so customers sometimes have to wait for their items. Because they sell expensive electronics it makes the return policies very strict and makes customers unhappy. Best Buy has to constantly have the most updated products, even if it means discounting old product just to get it out of the store. New trends and changing technology makes inventory a little tricky.

Weaknesses(continued) Best Buy does not always have people out on their sales floor which may cause unhappy customers and loss of a sale. There are no best buy stores in southern half of Utah, so they have no presence down there.

Opportunities There is always new upcoming technology to offer customers. They could expand their locations to more parts of Utah. They could possibly even go international, because they only have stores in the states and Canada. Get involved with the community to promote their name in a good sense. Can even set up sponsorship with the Utah Jazz, or REAL soccer team.

Opportunities(continued) They can offer programs for tuition reimbursement for college students working at Best Buy, which would attract young, smart, hip kids that understand what’s popular and that have positive attitudes to come work there. Now that other electronic based companies like Circuit City and Radio Shack have if not died out, have become a lot less popular, that being said, Best Buy can act and make themselves the number one electronic store.

Threats The upcoming of new technology such as buying movies and video games online gets rid of the chance of people coming down to Best Buy to purchase what they are in search for. They have very large competitors that sell what they sell, but also have a wider range of products that makes it a one stop shop, rather than just electronics. They rely so much on selling brand name products that if one of those large companies were to screw up, it can make an impact on their products, and Best Buy could potentially lose money.

Threats(continued) The possibility of losing customer loyalty due to the internet and competitors promotions and their capability of allowing customers to find lower prices than Best Buy can afford to offer. They offer a lot of products for leisure activity so if the economy is not doing well, then people aren’t going to be shopping for TVs and DVD players.

Recommendations They can try to open up more stores. Not only in southern Utah, but other states as well and can even try to make their company go international eventually. They can become involved with a sports team organization such as The Jazz basketball team or the REAL soccer team to further promotion and publicity.