Live chat Call back
← Crane Accident AnalysisPlay as an Integral Part of Early Learning →

Value Chain Analysis. Custom Value Chain Analysis Essay Writing Service || Value Chain Analysis Essay samples, help

Best Buy Inc. is a leading U.S based specialty retailer of entertainment software, personal computers, consumer electronics and related services. Currently, the company operates more than 1,150 retail stores across America, China and Canada. Best Buy’s assortment of merchandize includes private brands like Geek Squad, Init, Rocketfish, Insignia and Dynex. The company operates under two distinctive geographical segments, international and domestic ones. Its international segment comprises of all Chinese and Canadian stores as well as their online operations. On the other hand, its domestic segment comprises of all stores and online operations in the United States, including Geek Squad, Bath Centers, Best Buy, Magnolia Audio Video and Pacific Sales Kitchen (Best Buy, 2009). In order to better comprehend activities through which Best Buy creates share holder value and develop a competitive advantage, this paper separates Best Buy’s business system into a series of value-adding activities known as value chain.

Limited time Offer

0
0
days
:
0
0
hours
:
0
0
minutes
:
0
0
seconds
Get 17% OFF

Best Buy’s strategy is focuses on expanding its customer base and its geographical reach by expanding into new markets and strengthening its current position by implementing a customer centric approach in dealing with its customers as well as acquiring operationally and financially suitable targets. This can be seen in the company’s inbound logistics, operations, outbound logistics, sales, marketing and service.

The company’s sales and marketing strategy has also given it a competitive edge over its major rivals. The company has a gift card program where the proceeds from the sale of these gift cards are usually deferred until a client uses the card to acquire products or services from the company. It has been established that this practice enhances the customer loyalty. On the same note, the company sells extended contracts on behalf of third parties (Serres, 2007). In most cases the commissions from such deals are recognized in revenue at the time of sale.

The primary activities discussed above are supported by the company’s infrasttructure, human resource management, technology development and procurement. Best Buy Company’s structure is founded on its culture, which is approachable, friendly and respectful. This culture allows employees to develop strong, independent and enduring working relationship with each other and also with their clients. As a result, the company’s offices have been transformed into collaborative and team-oriented places to work. The company’s human resource is among the largest in the industry. It is estimated that the company employs over 167,000 people, which translates to a 7.2 percent employee growth rate. The procurement program is among the best in the industry. This can be attributed to the fact that the company has been relying on the same suppliers over the years. Serres (2007) argues that to reduce procurement costs, the company has been able to match the timing of merchandizing receipts with distribution, and hence consolidate its distribution. In regards to technological advancements, Best Buy has introduced a new labor model that adds hourly pay and retains commissioned sales. It also prides itself on not engaging in any development and material research activities from 2005 to 2008. It is apparent that this company has been able to create a share holder value and develop a competitive edge because it was named the Company of the Year in 2004 by the Forbes Magazine (Moyer, 2005). Moreover, it was ranked among the top 10 “America’s Most Generous Corporation” in 2005 by the Forbes Magazine.

5% OFF

for more than

15 pages

10% OFF

for more than

30 pages

15% OFF

for more than

50 pages

Value Chain Analysis. Custom Value Chain Analysis Essay Writing Service || Value Chain Analysis Essay samples, help

Stay Connected

Live Chat Order now
Stay Connected

Related Analysis essays

  1. Play as an Integral Part of Early Learning essay
  2. B. F. Skinner and Behavior Analysis essay
  3. Implications of Globalization and Technology on Negotiations essay
  4. Comperative Analysis essay
  5. System Analysis and Design essay
  6. Crane Accident Analysis essay
  7. SWOT analysis paper essay
  8. Big Lots, Inc. essay
  9. The Ain Ghazal essay
  10. Invention Worksheet Visual Analysis essay
Close
 
Limited offer
Get 15% off your 1st order
get 15% off your 1st order
Close
  Online - please click here to chat