With the holiday season here, there is more talk about Best Buy — which is also the focus of the chapter opening scenario we use for our retailing and wholesaling chapter. A BusinessWeek article “Why Tech Bows to Best Buy” (December 10, 2009) the company’s strategy now that its direct competitors have largely gone out of business (see Circuit City) and new competitors Amazon and Wal-Mart are emerging. Consequently Best Buy has changed its strategy. The article supplements discussions of competition (chapter 3), strategy planning (chapter 4) and retailing.
You can also watch a Wall Street Journal video below, “Best Buy’s Battle Between Sales and Margins” (December 15, 2009) includes an interview ith an analyst who discusses how competition and the need to lower prices has eroded Best Buy’s margins. A bit more finance oriented, this video might complement a classroom discussion of pricing.