Best Buy's Business Model
What Does Best Buy offer?
Best Buy was incorporated in the state of Minnesota in 1966. The company strives to enrich the lives of consumers through technology. They have offerings in six revenue categories: Computing and Mobile Phones, Consumer Electronics, Appliances, Entertainment, Services, and Other.These categories provide products and services to their customers that address key human needs across a range of areas, including entertainment, productivity, communication, food preparation, security and health and wellness. They have operations in the U.S., Canada, and Mexico.
Has 2 Operating Segments:
Best Buy Domestic:
The Domestic segment is comprised of the operations in all states, districts, and territories of the U.S. under various brand names including Best Buy, bestbuy.com, Best Buy Direct, Best Buy Express, Best Buy Mobile, Geek Squad, GreatCall, Magnolia, and Pacific Kitchen and Home.
Best Buy International:
The International segment is comprised of all operations in Canada and Mexico under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad and the domain names bestbuy.ca and bestbuy.com.mx.
What Are The Alternatives?
Major competitors are local electronics stores and companies like Costco, Amazon, Target, and Walmart.
What Is The Basis of Competition?
Price is of great importance to most customers, and price transparency and comparability continues to increase, particularly as a result of digital technology. Further customers are increasingly seeking faster, guaranteed delivery times and low-price or free shipping which adds to the basis of competition.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.