Best Buy: Making waves in the American soil
"Best Buy Company is an American retail chain that sells a range of consumer electronic goods. In its home country in the US, the company has captured 19% of the market share. Best Buy sells a range of consumer electronics such as computers, software, video games, DVDs, mobile phones, cameras, and home appliances. Its stores comprise installation of car audio and video equipments, installation services and a Geek Squad service for computer repair and warranty services.
Apart from the US, the company also operates in Mexico, Canada, China, Turkey and the United Kingdom. There are more than 1,150 stores in the US and eight Best Buy stores in the UK. There are also retail outlets called Zoom Shops that are placed in malls and airports. The company is headquartered in Minnesota.
Best Buy was initially founded in 1966 by Richard Schulze and James Wheeler, under the name, Sound of Music. In1981, a tornado attacked the area and Sound of Music initiated a sale of its goods under the name Best Buy. The new name was registered and the company became the first store to sell a wide variety of discounted and branded goods.
Internationally, Best Buy opened its first store in Shanghai. In the Chinese markets, Best Buy acquired majority stake in the retail chain of Jiangsu Five Star Appliances. This was followed by a series of launches and mergers in various countries. By 2008, it shut its stores in China and planned to reopen later. In 2009, Best Buy was named the primary electronics retail store in eastern US. Best Buy ranks the first in the retail segment of mobile phones along with brands from reputed companies. Best Buy also has a detached mobile store outlet across shopping malls. Best Buy's prominent design is features across all its stores in the US and the company is also called the "big blue box".
The company eliminated commissions for its sales officers in 1990 and earned $1 billion as annual revenues. Following this, the company expanded to Maryland and Virginia. Best Buy ventured into the online retail industry after the launch of Bestbuy.com.
In 2008, the best buy company unveiled a product replacement plan that comprised a strategy wherein there were variable levels of coverage. According to this plan, there are extra services such as limited free telephone troubleshooting, multi-year spyware protection, preventative maintenance checks, and so on. The company witnessed a slight decline in its profits in 2011. However, it generated a profit of $651 million and revenues of $16.26 billion. It remains to be seen if the company can survive in a market of uncertainties and stiff competition from rivals.