Question

Best Buy is the largest consumer electronics retailer in the United States with fiscal 2018 sales over $42 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 them 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, or a best-cost strategy? Which one of the five generic competitive strategies best characterizes Best Buy? Explain your answer.

Answer 1

This company is having the best cost strategy as given in the case that this company is having low cost because they are competing with compititors like walmart that means they are having the low prices and at other side this company have differentiation in their services also that means this company is having best cost strategy. Because company is providing the differciated products at the lower prices which is the best strategy in the cut throughout competition.

I hope my efforts will be fruitful to you ....?