SWOT Analysis Assignment MKTG1030, 9:00-9:50 AM Prof. Coker Arsen Drljo Jordan McCormick Jason Ramirez Company: Best Buy (35 east, 11400 south) The company was founded by Richard Schulze in 1966 and called Sound of Music before the name changed to Best Buy in 1983. Best Buy generates more than $40 billion annually. Nationwide, Best Buy has more than 1,400 stores and locations, including large-format and Best Buy Mobile stores, and employs more than 125,000 people. Best Buy is a leading provider of technology products, services and solutions. The company offers expert service at an unbeatable price more than 1.5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad Agents or use BestBuy.com or the Best Buy app. The company has operations in the U.S. where more than 70 percent of the population lives within 15 minutes of a Best Buy store, as well as in Canada and Mexico, where Best Buy has a physical and online presence. Mission Statement: Best Buy does not have an official or defined mission statement but on their website you can learn all about the companies going green program, the policies, and more. SWOT Analysis: Strengths1. The market they are in is constantly growing and getting bigger. 2. They have a lot of customer loyalty due to the size of their company. 3. This location has a freeway close to it, and is also on a very busy street corner crating more traffic to this location. 4. The offer Geek Squad assistance. 5. They have experts on specific equipment to best inform customers about products. 6. They have a going green program, and people love seeing companies that recycle. 7. You can buy products physically in-store, over app purchase on your cell phone, or buy online on their website. 8. Have been recognized for best TV sellers, gives them advantage because customers searching for a TV will go to Best Buy. 9. They have extended shopping hours during the holiday, which allows them to dominate the holiday’s sales. 10. They have brand name recognition. Weaknesses1. The managers do not treat their lower employees very well; possibly making the lower downs work less efficiently. 2. Best Buy keeps most of their products warehoused so they do not always have their shelves stocked with products or have the products customers are looking for in-store which can cause customers to become frustrated and angry. 3. They only have a limited amount of stores in Utah, which means their customer reach is limited. 4. They do not have very good customer service. 5. They do not always have people out on the sales floor, which makes getting help with things difficult and can lead to unhappy customers. 6. They only have stores located in the U.S and in Canada. 7. Because they sell electronics that are expensive it makes the return policies very strict and can cause frustration for customers. 8. 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. 9. The credit line Best Buy offers is not very good and has high interest rates.. 10. They don’t offer any sort of commission to the salesmen selling their product, which can lead to low team morals and no incentive to try to sell the product. Opportunities1. There is always new and updated technology to offer the customer. 2. Since they only have stores in the U.S and Canada they could try international. 3. Instead of warehousing so many of their products they should increase size of stores to hold more in-store products. 4. Expand how many stores there southern in Utah and possibly places in other states as well. 5. People like companies that recycle nowadays so they have a chance to gain some publicity just by recycling unused or unneeded material. 6. In Utah some stores are usually closed on Sundays due to church and that it’s a rest day, Best Buy could be open for those who wish to shop on Sunday. 7. Get involved with either the Jazz basketball team or the REAL soccer team to promote their name even further. 8. Potential to create their own brand. (Ex: Wal-Mart has great value). 9. They can offer programs for tuition reimbursement for college students working at Best Buy, which would attract young smart kids that understand what’s popular to come work there. 10. 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. Threats1. The service of online streaming video games and movies now reduces people actually having to come to the store to buy things. 2. Other larger stores the sell electronics such as Wal-Mart and Target. 3. They rely so much on selling brand name that if one of those large companies screw up, it can make an impact on their products, and Best Buy could potentially lose money. 4. Lack of presence in southern Utah eliminates any profit down there, and there is also not promotion down there either. 5. The advancement of newer technologies will soon outdate most of Best Buys product line. 6. Have 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. 7. The screw up of any of the individual stores can affect the image of the whole company. 8. Possibility of losing customer loyalty due to the internet and it’s capability of allowing customers to find lower prices than Best Buy can afford to offer. 9. Do not have stores in other countries so limited market to the U.S and Canada because they are not international. 10. Labor wages are starting to increase, higher minimum wage. Recommendations1. They can try to open up more stores, not only in southern Utah, but can even try to make their company go international. 2. 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.