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Best Buy Swot Analysis

Posted by Anonymous on 250 Points
Hello,

I have been assigned a semester long project, and at this stage we are to do a SWOT analysis of the company (Best Buy). I have called corporate and they are not willing to give out "inside" information. As this paper is only to be about 1500 words, it does not have to be extensive, but I cannot even find the slightest bit online. Perhaps I am searching with the wrong query or something but all I get are "Term Paper" sites and official reports that cost hundreds of dollars. If anyone can point me in the correct direction, I would be immensely thankful.

  • Posted by wnelson on Accepted
    SWOT, like all marketing tools are analysis tools and a SWOT assignment is about analyzing the company situation and not a book report. The grade is in the analysis process, not the answer. Consider yourself lucky that you didn't find an answer either lying around the net or from corporate execs at Best Buy - or you would have come close to failing this part of your semester project.

    So let's look at the components of a SWOT analysis:

    First recognize that Strengths and Weaknesses are internal - so your analysis will look inward to the company.

    Strengths
    What elements internal to Best Buy can you identify as strengths? In particular, what elements can Best Buy use to develop competitive advantages and allow them to satisfy customer needs better than the competition? An example could be the Geek Squad provides Best Buy with better technical customer service then, say, Sears or online competitors like Tiger or CDW.

    Weaknesses
    Converse to strengths, what elements internal to Best Buy prevent them from satisfying customer demands as well as the competitors can? An example could be higher overhead associated with store design versus, say, Lowes (for appliances).

    Opportunities and Threats are environmental and outward looking.

    Opportunities
    What elements outside of Best Buy could allow opportunities to arise to their benefit? An example might be

    Threats
    What elements outside of Best Buy exist or could arise to limit Best Buy's Success? An example could be the national attitude toward protectionism could mean import restrictions or tariffs on imported products - raising costs at Best Buy.

    A good list of potential SWOT areas to run through is at http://www.businessballs.com/ Just listing the categories given here won't be adequate to say you did a "SWOT." You will need to provide an example or description of how it fits Best Buy.

    I hope this helps.

    Wayde
  • Posted on Author
    That helps tremendously, as we were only given basic definitions on each section. One last thing, would you say that a lot of this, with substantial backing, can be opinion based? Meaning, for example, one strength is the presence of employees that have a general knowledge of their section versus a store that doesn't have many associates to assist you and answer your questions (IE CompUSA).
  • Posted by wnelson on Accepted
    Let's talk "real world" versus academia. In any marketing analysis, nothing is based on pure opinion. Some analysis is based on "more solid" facts than others, however. For instance, if you have "personal experience" with a Best Buy store versus aCompUSA where the employees are more knowledgeable, then your analysis would include this, based on a sample of one store of each type - with a note that more research is needed to test out this conclusion. If, however, you have researched the training of both stores and find that Best Buy's regime is more extensive versus CompUSA and have sampled one store of each type and your experience bears out that Best Buy employees are more knowledgeable - then you have a stronger conclusion. Not rock solid, but better. If you know the training is better and you have statistically surveyed a significant sample of stores to prove this out, then you would have a conclusion with significant confidence. Follow me?

    All of these cases I describe are fact based, not opinion. Some of the conclusions are less sure than others because there is less data on which to base it. When you discuss the conclusions you make based on the data, you also qualify it with a measure of the certainty of the data on which it is based. And if you can see a path to increase the confidence in the conclusion, mention that as well. This is the way marketing analysis is done in the real world and this process will be valid for you to use in your projects.

    Does this make sense?

    Wayde
  • Posted on Author
    Thank you!
  • Posted on Member
    Hi,
    I have been given the assignment of performing a SWOT analysis on Best Buy as well and am having trouble with some of the details. I am having no problem finding lots of strengths but the weaknesses are hard to find. The website for Best Buy is obviously not giving anything away freely and I know I need to search but the question is where and what for. Adding to the problem is the fact that I must find at least 25 different weaknesses so I am afraid that I will run out of material quickly if I don't have a reliable resource. Also, I am worried that I will have trouble with the opportunities and threats as I must find at least 20 examples of each of these. If anyone can give me an idea of where to look and what to look for, I would be most appreciative.

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