Environmental and SWOT Analysis for Best Buy Co., Inc.KURT MULLINS

Macro- and Micro-Environmental Analysis

Macro-Environmental Analysis Technological advances

Economic downturn

Political and regulatory

Socio-cultural

Micro-Environmental Analysis Industry

Competition

Suppliers

Macro-External Environmental Analysis

Technological advances Frequent introduction of new products.

The emergence of online competitors in comparable markets.

Product lifestyle and prices decrease causing margins to decrease.

Economic Downturn Not necessity products

Less disposable income

Low-interest financing are given to customers.

Macro- External Environmental Analysis

Political and Regulatory Federal Reserve Regulations due to credit card crisis

Restricts companies from offering differed interest financing to customers.

Socio-cultural Change in leadership in an economically tough time.

The new CEO is a new-blood CEO.

Micro-External Environmental Analysis

Industry Electronics industry grew during the financial crisis.

Barriers to entries have diminished due to globalization.

Internet purchasing has negated customer loyalty barrier.

Barriers to entry still include economies of scale and advertising.

Supplier Geek Squad

Magnolia Audio Video

Pacific Sales

Micro-External Environmental Analysis

Competition Brick and Mortar Competitors

Wal-Mart Stores, Inc. (Customer Service Market)

GameStop Corp. (Video Game Market)

Radio Shack Corp. (Music and Sound Market)

Online Competitors

Amazon.com, Inc. (Online Retailer Market)

Netflix, Inc. (Online Video Streaming Market)

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Strengths

Accounts for 19% of their market as a consumer electronics retailer.

Trained employees with extensive product knowledge. Recognize each customer is unique and knowledge how employee

can gain maximum enjoyment.

Plenty of high-quality suppliers.

Superior customer service.

Top-notch products.

Weaknesses

Inexperienced CEO.

High priced products during a economic downturn.

The financial stress.

Opportunities

Continued expansion and acquisitions.

Great time to “rev-up” the current strategy in an attempt to not fall behind.

Create more innovative products.

Even more extensive training for upper- and lower-level managers and even employees.

To lower long-term debt compared to cash from the discrepancy in 2009.

Threats

Best Buy’s financial strength.

Quality of Best Buy’s customer service.

Federal Reserve restrictions on credit cards.

Increased competition within their market.

The economic downturn.

Conclusion

The company’s Environmental and SWOT analysis shows where the company is compared to it’s external information and how and where the company can go ahead in the future.

Thanks for your attention! Any questions?

References

Hill, C. W. L., and Jones, G. R. (2013). Strategic management, an integrated

approach (pp. C17-C25), 10th ed.). Mason: South Western. ISBN 9781111825843