Best Buy SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Best Buy
Best Buy is consumer electronics and appliances retailing company
engaged in retailing consumer electronics and home-office products, and
entertainment software and related services. Best Buy is North America's largest
specialty retailer of consumer electronics, personal computers, entertainment
software and appliances. The company's large scale of operations has increased
its bargaining power with consumer electronics vendors. In addition, strong retail
network also enables the company to serve a wide customer base and penetrate
the market more effectively. However, increasing competition from other
consumer electronics retailers, specialty home-office retailers, mass merchants
and home-improvement superstores could reduce the company's margins.
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Best Buy SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong market
presence
¾ Strong financial
¾ Dependence on few
suppliers
¾ Lawsuit
performance
¾ Strategic international
acquisitions
External
Opportunities
¾ Agreement with
Carphone
¾ Growing global
computer and
electronics retail
sector
¾ New stores
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Threats
¾ Competition
¾ Rising labor wages
¾ Soaring consumer
price