Building the New Blue?
- Alye
- Aug 30, 2017
- 3 min read
Best Buy is dealing with a company transformation strategy that has over 50 years of baggage. They are the “largest retailer of consumer electronics and appliances” (Wells, 2017) and have expanded internationally to accommodate the growing demand for bargain shopping. Their advances into the space have been highly scrutinized and their growth has still proven to be elusive. A new CEO and the “Renew Blue” turnaround efforts may be incomplete in their ability to understand the entire nature of their company’s problems. Companies like Amazon, Target, and Walmart are beginning to take share of the marketplace leaving Best Buy to wonder, what next?
Best Buy has been known as “part-superstore, part showroom, and employed with people that are energetic about selling their stock of products” (Wells, 2017). The emphasis of the company has always been on their ability to upsell their customers once they are in the store; but, provide them quick and efficient means (as well as cost effective) to receive those products. This model has worked for many years; but, Amazon is quickly beginning to cash in on single day shipping. This changes the model and the behavior of Best Buy specifically with the layout of their stores, the products offered, and their employee training.
The “Renew Blue” campaign is the strategy that Best Buy is hoping to use to grow out their business and create longer lasting relationships with their customers. Addressing the main concerns highlighted in the previous sections; Best Buy has a long way to go. There are a few crucial items they must first address to address the flat line growth in projected years to come.
Partnerships have been how the company has looked to renovate their store space. Apple and Samsung are among their top boutique partners that provide products and services to the Best Buy customer. The mobile phone market has been constantly growing throughout the years. By having in-store presence from these retailers; Best Buy will serve as the hub for technology and innovation. This hub of excellence will provide services to Best Buy customers. They must be the “solution center” in the marketplace. Amazon has an engaged community online and Best Buy will need to break through this eventually with their marketing tactics. In the meantime; they can continue to grow out their in-store brand and focus on providing efficient and quality service to customers.
The store experience must be easy and quick. Customers that are coming to purchase goods in store must be able to navigate the layout and services quickly. Best Buy renovated their store layout; but, they must make sure that it continues to be reviewed for better efficiency. Studying a customer’s behavior in their stores will allow them to strategically put digital ads within eyesight level. They can provide service that is located at prime hub zones and make sure that the customer feels taken care of; but, not overwhelmed.
Going digital is a large task for the company to take on and implement immediately. This will require longer time and investment. The “Renew Blue” campaign must align to the company’s core values and be a part of their mission statement as a firm. Buy-in is needed at every level of the company and the strategy must be carried out in every decision. It will be the backbone for future decisions and help Best Buy navigate the future of retail.
Leaders and the people working in the company are the company’s most valuable asset. Their service and the programs they’ve built around that service are why people continue to shop at Best Buy. Leaders must be groomed and taught how to rejuvenate the customer experience. The front lines of the stores must feel empowered to make decisions and provide the support necessary to help Best Buy sell their goods.
Best Buy must look at a way to measure their changes in the organization in a SMART way. Measurable goals must be attainable. The environment and competitors are constantly changing. Evolving in this marketplace requires agility and the ability to predict the unknown. By innovating and looking to constantly outperform themselves, they will be able to predict growth in the company instead of flat line sales.