Question

Five Generic Strategies

Best Buy (just bought a nice headset for my computer: Logitech H800 for better quality of sound for recording these lectures) is the largest consumer electronics retailer in the U.S. with 2013 sales of almost $50 billion. Best Buy competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and Target, but it is also known by consumers for its first-rate customer service. Best Buy customers have commented that the retailer's sales staff is exceptionally knowledgeable about its products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features.

Q. Based on the information above (and if you have ever been to a Best Buy) - how would you characterize its competitive strategy" Explain your answer.

There are 5 competitive strategies that companies can look to use to grow their business and make it stronger in the long run. These strategies are Broad Low-cost, Broad Differentiation, Focused Low-cost, Focused Differentiation, and Best-Cost.

Answer 1

answer-

Based on above information and my personal experience i would characterize its competitive strategy is broad differentiation strategy in which company offer products or services or some other attributes of them which are not offered by its competitors.

i say this because best buy offer best customer services as compared to its competitors like Costco, Sam's Club, Walmart, and Target.Company believes that if customers get the best service then they gets satisfied with their purchase.In its competitive strategy best buy attempts to outperform its rivals by offering best customer service that is perceived by consumers to be superior to that of competitors even though its price is higher or not.

The company strives to inspire their employees to have richer interactions with customers.they need to understand them better than their competitors so the company can gain customer loyalty.

the points which makes its competitive strategy is the staff who is eager and available to help customers when they are lost or in need at its stores. its policy to demonstrate the electronic devices at stores so that customers can fully remove their confusion about purchase. and last and very important its geek squad which helps customers 24/7 in tech support and devices installation related services.

all these points makes best buy's competitive strategy.

*hope above answer would help you.if did pls do give positive ratings, i would appreciate it. thanks