Question

Based on Best Buy SWOT Analysis, describe in detail two Business Strategic Alternatives and two Corporate Strategic Alternatives. For each of the alternatives, give specifics of what your alternative propose is and the justifications of your proposed alternatives.

• Strengths
  • Good reputation with customers
  • Large revenue flow that continuously improve each year
  • Strong marketing expertise in electronics sector

• Weaknesses
  • Customers loyal to vendor brands (Apple, Samsung) than retailer
  • Operating expenses in the stores are higher than those for online retailers.
  • Customers can bypass them and go directly to manufacturer page and buy direct

• Opportunities
  • The disappearance of similar competitors
  • The growth of ecommerce allows to increase sales volume without building new stores
  • Growing market for electronics, including mobile devices such as smart phones and video games

• Threats
  • Declining customer loyalty
  • A new generation of consumers seems to prefer online shopping for electronics online to visiting a brick-and-mortar store
  • Aggressive discounting of electronics by online retailers and big box retailers

Answer 1

answer-

the two business strategic alternatives are-

Creating differentiation in its products or service - the purpose of this alternative is to add new features in products or focus on customer service which has not offered by any other competitors like 24/7 tech support, real time problem solving of customers so that it can create customer loyalty and attract more customers.

Become low cost leader by improving business process like supply chain- The purpose of this is to make Best buy low cost business and cut down expenses by improving its supply chain in which it needs to focus on getting right material on right quantity on right time so that it can cut down inventory and supply chain cost and meet the demand of customers on time.

The two corporate strategic alternatives are-

Entering into Online field- The purpose of this strategy to grow the business and take the opportunity to grab customer base who likes to purchase online products . Best buy with good finance resources can be able to make this true and company does not need to setup more buildlings or brick mortar presence.

market development startegy means enter into new market. the pupose of this to tap the market which has not been used like entery into new cosuntries like India to grow its business.

*hope above answer would help you.