Table of Contents
Best buy continues to be one of the leading retailers of electronics in America. This is due to the fact that the company has been able to watch the needs of the consumers; therefore, instead of just depending on the lower prices of their products to be the determining factor in its command of the market, the company has also ensured that its staff is trained well enough to handle the customers in an effective way. However, the company is still facing certain challenges, particularly regarding the presence of competition from other companies that are proving similar services, such as Amazon. Keeping up with the changes in consumer preferences and trends of goods also seems to be a hard task for them. The company has, therefore, been able to integrate marketing methods that are geared towards meeting the needs of the customers through the provision of adequate and top notch goods and services.
Defining the Issue
The main issue in the case is the ways, in which the company is able to effectively use the customer centricity model in order to be ahead of their competitors, such as Amazon and Wal-Mart. This model provides that consumers should be made aware of the benefits they are likely to enjoy when they use the various forms of technology that the company is providing them with. The trick of the model is that the company makes the consumers realize that they need the product, and not just make them think that purchasing the product is beneficial to the seller only. Once this is done successfully, consumers will keep coming back every time that there are new technologies that the company is providing (Hoffman, 2014).
Analysis of the Case Study
The main issue that the company seems to be dealing with is the increase in competition, despite the fact that the needs of the consumer are also growing. The development and spread of internet may have brought about the certain benefits, such as the reduced costs of operations for the company, but with it some perils have come as well. This is in relation to the fact that there are several other stores that have also chosen to operate online, as well as on the ground. This has greatly reduced the loyalty of the consumers towards the products of this company, because when they go online to shop, they are either going to look up the best products among all those provided by the various companies, or they are likely to land on the first one they see when they are in a hurry or are not interested in details (Heinze & Hu, 2006).
Internet is the future. This is the first thing that the company should be reminded of all the time. This means that in the coming future (if it not here already), there will probably be no need for physical stores. Most companies will be operating online and will only have central stores, whose purpose is to make deliveries and pickups easy. Therefore, the company should greatly invest in their online presence. Apart from their ardent customers, the company should also look at the way they can get new consumers. This is first by making sure whenever there are searches for products that it provides, the name and website of the company is the one that comes up first. This is done through ensuring that the right people are contacted to the given information for the site, through the use of the search engine optimized wordings.
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Selection Decision Criteria
This decision was arrived at after certain considerations were made. The first one, as has already been mentioned, is the fact that internet is proving to be a preferred mode of transaction for both consumers and companies. The company is also aware of the fact that it needs to expand its markets in order to realize better revenues. However, if this is done without prior research and planning, it is likely to fail. The reason for this is that venturing into the new markets is often a tricky affair, which is also laden with fresh startup costs (Hoffman, 2014). However, if the internet is used in the correct manner, there will be less likely risks of major losses, since the company will not have to spend a lot of funds on the startups in their new locations.
An alternative that is given as a solution is that the company carefully studies the needs of the consumers (Heinze & Hu, 2006). This will help them in tailoring most of their products to match the customers’ needs. This will endear them to the consumer, since they will feel that the company is able to cater for all their needs. For this to take place there will have to be analysis that is done quite frequently owing to the fact that the kinds of products that the company is dealing with are diverse. More technology keeps coming up every day; thus, the strategy that works today may fail to yield the same results tomorrow.
Results of Evaluation
The evaluation has, therefore, revealed that in order for the company to stay afloat, there will have to be regular updates on the suggested consumer database that is supposed to equip the company with the specific needs of the consumers. Therefore, one of the major concerns of the company should be a market analysis that is carried out as frequently as possible. The company should also put into place a mechanism that helps to deal with and record any complaints received from the consumers regarding the products that are sold to them.
Action and Implementation Plan
The first action that should be taken is to revamp the company’s website in order to ensure that it conforms to the preference of the consumer and is able to provide them with the sufficient information for them to make informed choices on the company they will be purchasing from (Hoffman, 2014). The second action that will be taken is to make sure that the online presence of the company is top notch, so that not only does it level with those of the competitors, but is even able to beat them where it can.
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The table given below shows the actions that should be taken by the company in order of their importance.