3 million shares. In 2000, the company launched its online retail store: BestBuy.com. which allowed customers a choice between visiting a physical store and purchasing products online. The first entranced during 2001 into the international market was in Canada, making Best Buy an international business and also acquire a local chain called "Future Shop." Eight years later, Best Buy became the largest electronic store on the east coast. .
Issues.
Some of the issues Best Buy faces are the highly competitive electronic market, but the main problem is Best Buy exhibition for online retailers, as a result Best Buy had lost millions of dollars in sales. This is reflected in its poorly financial performance with million in operating losses. Best Buy's main competitors in the United States are retailers, online retailers and club warehouses like Wal-Mart, Amazon.com, Costco and Target. Additionally, Best Buy's inventory is no longer being produced or used due to the continuous technological changes and innovations.
Long Term Objectives.
The main objective for Best Buy is to sustain growth and increase profit. Due to Walt-Mart price penetration strategy, in order for Best Buy to distinguish itself and overcome challenges from their competition, the company should keep offering great customer service and the knowledge that their employees have to provide and exceptional service. A great objective will be to reducing store sizes by 35% within two years, which will reduce expenses as a result of increasing earnings. The last objective will be Best Buy expanding its website by offering employee expertise which will be implemented during costumers visiting websites, holidays and special occasions so that customer are able to choose from a wider range of products.
EXTERNAL AUDIT.
Opportunities.
As the demand for online goods expands, Best Buy has the opportunity to combine their stores to operate better with online sales.
