Mini Strategic Audit comparison between Best Buy and TigerDirect With the present and the future of our society using the internet for everything from gathering information to shopping, retail giants and other companies like Best buy and TigerDirect. com are flooding the internet with their products and services. With the competition to be the number one rated online retailer, the companies mentioned above and many others like it are constantly improving how to gain new customers.
The purpose of this assignment is to provide a mini strategic audit of the two companies above, showing how they differ in strategy management and implementation while simultaneously identifying the importance of strategic management. Let us begin with a brief history of both companies. Best Buy Mission Statement: Best Buy’s vision is to make life fun and easy for consumers. The company? s stated mission is to treat customers as unique individuals, meeting their needs with end-to-end solutions, and engaging and energizing its employees to serve them, while maximizing overall profitability.
Best Buy is the world’s largest multi-channel consumer electronics retailer with stores in the United States, Canada, China, and Mexico. This company was founded by Richard Schulze in 1966, and was originally known as the Sound of Music. The name was changed to Best Buy in 1983. The company’s value is almost $50 billion annually. More than 145 thousand people are employed globally. Best Buy has over 14 thousand stores and locations in the United States, including large-format and Best Buy Mobile stores.
The Essay on Company strategic plan
According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are: ●poor sales due to economic downturn ●increases in expenses such as wage expenses. In addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its ...
This company also has about 1 billion visitors shopping online and 600 million shoppers visiting their conus stores annually. BestBuy. com is among the top ten retail websites in the United States and its has the number one customer loyalty program of its kind. TigerDirect Mission Statement: TigerDirect’s vision is to take care of every customer like they are a member of their immediate family. From the inception of the company’s beginning, the top priority was to provide unmatched customer care and to help every customers understand how technology could assist them.
TigerDirect is a computer and electronics retailer with a large online presence and several physical stores. TigerDirect also has six call centers. The entire company structure is linked together and powered by Avaya Communication Manager; where the industry-leading IP telephony software is established and positioned for use. This capabilily enables the company to service thousands of customers on a weekly basis. TigerDirect also uses home-based agents to benefit customers’ needs.
TigerDirect handles up to 60,000 calls on average per week from its main contact center in Miami, Florida (this figure usually spikes to over 100,000 during the crucial end-of-year holiday season. TigerDirect. com was established to serve the needs of computer users, and today they are one of the industry’s top computer and computer-product retailers. There web site has been ranked among the New York Times’ “Top 25 Online Retailers” and the catalog has become a textbook for computer users. Now, that we have discussed the history of both (Best Buy and Tiger Direct), lets analyze the companies using the SWOT framework.
According to the assigned textbook, Contemporary Strategy Analysis, Strategy is defined as the pattern of objectives, purposes, or goals and the major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. Kenneth Andrews, The Concept of Corporate Strategy (Homewood, IL: Irwin, 1971) TigerDirect’s business strategy has always invited intelligent, courteous men and women to staff call center; to answer questions, make recommendations and deliver solutions.
The Essay on Brookshire Grocery Company Employees Texas Customer
Brookshire Grocery Company, known for its commitment to excellent customer service, was established in 1938. The company began with one store in downtown Tyler, Texas under the name Brookshire Brothers. Soon after, the company changed its name to Brookshire Grocery Company and expanded to four stores in Tyler and Longview, Texas, which included the first air-conditioned store in East Texas (brooks ...
They stock the web site with the latest products, pride themselves by offing the best deals and ensure plenty of information is available to assist the customer in the decision making process. Best Buy’s business strategy is to maximize long-term revenue growth, and is based on two main aspects: consumer centricity, and international expansion. They both take pride in recognizing each and every member of their staff, emphasizing “people are there greatest asset” and that they do make all the difference between success and failure of a company. Best Buy Strengths Company size and extensive global distribution network
Core competency in technology service through the Geek squad Well-known brand Robust internet presence and online infrastructure Strong past performance Best Buy Weaknesses Major governance issues Too many brands Poor inventory management Weakening financial situation Best Buy Opportunites Emerging global markets Online purchasing is becoming more prevalent Increasing need for IT outsourcing Economic recovery Best Buy Threats Shareholder lawsuits against value destruction Limited number of suppliers Exchange rate fluctuation Unemployment and recession impacts on discretionary income
Tiger Direct. com Strengths Core competency in technology Robust internet presence and online infrastruture Carry the largest selection of computer components Have established BUYING POWER, meaning, they can purchase products far below competitors Tiger Direct. com Weaknesses Major governance issues Lack of physical buildings Bad consumer reviews Tiger Direct. com Opportunities Emerging global markets Online purchasing is becoming more prevalent Increasing need for IT outsourcing Economic recovery Tiger Direct. com Threats On line competition Rising labor wages
The Essay on Benefits of Conducting a Business Online
What benefits do you think Knight Enterprises Ltd and their customers could gain from conducting their business online? An online presence for Knight Enterprises Ltd is a powerful marketing and communication tool, an incredible source of cost-efficiency, an environmentally friendly way to work, a sign of professionalism and pretty much a requirement today. Benefits for the organisation The first ...
Pressure from competitors to reduce prices Unemployment and recession impacts on discretionary income Having spent the last 30 years in the Air Force, I find it true that enterprises need business strategies for the same reasons the armed forces need military strategies; to give direction and purpose, to deploy resources in the most effective, efficient manner and to coordinate the decisions made by different leaders. Strategy is a key ingredient used to achieve successes for individuals and corporations. Sound strategic management cannot guarantee success, but it can definitely enhance your chances.
Strategic planning is the process of devising a plan of both offensive and defensive actions intended to maintain and build competitive advantage over the competition through strategic and organizational innovation. Business strategies can also play an important role in organizational structure development. Regardless of the size, environmental challenges or strategy used, companies operate their business with one purpose, to have a sound organizational structure for a successful business. Without this vital element and a common vision implemenataion, time and money is wasted on that organization ability to obtain sucess.