CASE STUDY ON BEST BUY

MD. IMRANUZZAMAN
M16232001
PORTER’S FIVE FORCES
5 Forces
Rivalry among the competitor
Threat of entrants
Bargaining power of supplier
Bargaining power of buyers
Threat of substitutes
Analysis
Market dominators like HP, Compaq, Sony, Dell etc.
Lack of brand awareness
Industry growth rate declined
Opportunity to gain the position of merger brands
Exit of many companies from business
Differentiated product positioning
Lowest earning in PC sales
Economic prices for PC with upgraded machines
Bundled package offer for PC
Dealing with third party to assemble PC
Emphasize much on product development
Price war increased
Less customer loyalty
Lack of brand value to customers
Direct sale of upgraded machines at reduced costs
No low power PC
Less price than competitors
Switching cost
ANSOFF’S MATRIX
 ANALYSIS
New Product

Product Development
Product: Personal Computer
Market: USA, Canada, UK, China, etc. (through all retail
Existing Market

stores)
Strength: Product quality, integrity, value, consumer
focus, differentiated product, less price than
competitors.
Weaknesses: Advertising, dependence on retail stores,
lack of brand awareness, market growth declined.
FIVE GENERIC COMPETITIVE STRATEGIES
 Type of Feature Low-Cost Provider Strategy Broad Differentiation Strategy

Strategic target Having a lot of retail stores helped Loyal customers would buy PC like
catch a lot of customers other products

Basis competitive Provided high configuration Provided differentiated products

advantage machines at lower costs than
competitors
Product line Brought good quality products with Different configuration PC of
few supplements different prices

Production emphasis Selling in own retail stores reduced Provided high power and featured
cost without reducing product machines
quality
Marketing emphases Market positioning with product Customers will buy whatever
differentiation features there

Sustaining the Offered economic prices for PC with Focused on product development
strategy upgraded machines
THANK YOU