Question

Find a company that is an example of low cost leadership or low cost focus. Explain why this company is an example. Does this company or the conditions meet the criteria for being appropriate for low cost leadership or low cost focus? Explain why or why not. Has this company experienced any of the risks or drawbacks of using either low cost leadership or low cost focus? Explain. What has been the impact of this strategy on power? Explain this using the Five Forces Model. Explain the advantages and disadvantages that this company has experienced as a result of following this strategy. Through answering this question, demonstrate your comprehension of and ability to apply the concepts of Generic Strategies and the Five Forces Model.

Answer 1

Best Buy has the target audiences ranging from below middle class to upper middle class families. All of the targeted audience are relatively widespread in different age segments. Best Buy deals in technological equipments, their target market are usually the young people. It operates according to the target market in different parts of the globe as an international retailer.
Company uses cost differentiation approach for providing better cost in consumer electronics for competing in the specific market segment.

Best Buy uses internet as a main tool for creating their advertisement as well as to provide promotion directly to the customers. This type of approach enables bestbuy to capture great amount of market by improving the overall services and effectiveness of the advertisement provide for their products and services. Placing the company as one of the best cost provider in the specific industry.

Company uses E-Commerce as one of the main tools for improving the overall serviceability as well as service provision in the specific market segment. Bestbuy is very well known for creating an impact by using its online website for creating high discount and providing increment in orders to the company. Implementation of electronic advertorial services and creating Highly Effective video advertisement for the organisation helps the company to maintain its benefit in the industry of operation.
Electronic record management system inside your organisation provide adequate information regarding warehousing as well as other approaches. By using proper supply chain management company is able to get the best prices from the suppliers and to provide the products at better cost to the customer increasing the overall sales and revenue generation for the company.

Company uses strong structure of stores across the globe by using cost differentiation technique. There Supermarket basic electronic operation system has definitely provided a competitive advantage for having a very large structure and availability of different product under a single roof. Better prices and targeting customer base has always been the most beneficial part of operation for best buy.

Retailer is usually located in to all the major cities across United States Canada and Mexico. This type of placement for the stores increases the overall adaptability of the targeted audience and provide positive support to the overall generation of best buy from the same market.

Best bye buys electronic products from the suppliers at low cost and improve the overall profit by selling it numbers. Using the cost differentiation techniques Best Buy maintain high revenues and profits from their products by using mass selling approach. Company has a tie up with many of the manufacturers and direct suppliers for getting the products at factory price this pricing technique definitely helped the best buy to maintain better profits from the same market as well as two improve there revenue generation and financial availability.

Best buy used cost differentiation pricing strategy in different market to create and advantage over its competitors this type of competition definitely help bestbuy to maintain better standards of mask selling the products to its customers as well as to increase their overall financial ability of getting more Orders and creating better stores for the customers.

For advertising and sales promotion, best Buy uses different events as well as also have a very strong presence over different traditional advertisement methods. Providing proper advertisement over televisions as well as over the internet is the main strategy of Best Buy to create better impact on the customer. High quality standard of service provision and having easy availability at different events are also one of the main strategies used by Best Buy to capture better customer base.

Best buy is facing youth competition from other retailers specially from the online industry such as newegg and other competitors. As these competitors does not have any physical operational structure their overall profitability is comparatively higher than the best by which is the most critical competitive drawback of best buy. This type of approach is definitely working better than operational structure of best buy for capturing large amount of market and providing better prices to the customer.

References -https://marketrealist.com/2017/12/insight-best-buys-growth-strategies
https://corporate.bestbuy.com/about-best-buy/

P.S.- Please leave a comment if any explanation is needed.