Granted, Best Buy has a last-man-standing advantage in these partnership deals. The company has an ability to reach customers across multiple areas, such as online, in stores and in their homes. Competitive advantage is what makes an entity better than opponents. In total over hundred of the company’s store adopted this strategy. However various business and management scholars have come to a conclusion that having these strategies is not important unless they are adequately managed; hence competitive advantage management (Pfeffer 142). It is worth noting heretthat this I in line with the notion brought forth by Mentzer in his article titles ‘Achieving Competitive Advantage through Supply Chain Management’ he suggested that not all customers are created equally because there are those that are very crucial to success of any organization while some are not as crucial as other and thus need to be treated by using a different approach. According to the vice chairman and CEO of the company, this is what gives them a cutting edge in the business environment. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. The company has an ability to reach customers across multiple areas, such as online, in stores and in their homes. Competitive advantage refers to set of strategic advantages … The low cost leader strategy would save Best Buy since through it factories are constructed and sustained. Stock quotes provided by InterActive Data. Today's robust results from Best Buy serve as a reminder that with focus and effort it is possible for any retailer to succeed against Amazon and other online players. The stock is up 60% Y/Y and may have benefited from the melt-up in financial markets. Still, Best Buy had to lean hard on its digital sales channel, which delivered in spades.Total domestic revenue (store and online) was $9.2 billion, up 4% Y/Y. Best Buy customer centered strategy . This carries with it a number of advantages for instance convenience and lack of being pressurized by sales persons to buy (Pfeffer 164). Bookmark of this page has been deleted. The strategy that has been adopted by Bes Buy is differentiation. Today's robust results from Best Buy serve as a reminder that with focus and effort it is possible for any retailer to succeed against Amazon and other online players. The company may also benefit from a competitive advantage in its tech support offering, which has already contributed to improved customer satisfaction levels. Competitive advantage refers to set of strategic advantages a business have adopted that make it be in a better position to compete or even out shine its rivals. For instance, since the plan was rolled out, the profit margin for the organization rose by almost 3% (Jaynie & Flanagan 122). Best Buy was one of the first retailers to embrace digital sales, which allowed it to beat back the Amazon (Last quarter, Best Buy's margins were relatively stable, despite not having in-store customers. Get our Low Price Guarantee, online or in store, on a huge selection of electronics, appliances, furniture, fitness, travel, baby products and more! This followed a 155% increase in the May quarter. Data from the YouGov BrandIndex survey suggests customer satisfaction levels have risen since the tech support subscription service was launched on May 21. The ability to grow revenue while cutting SG&A was phenomenal.The fallout was that EBITDA of $775 million rose over 50%. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.The paper is a critical examination of Best Buy managing for competitive advantage. Best Buy also appears to have a competitive advantage over a number of its sector peers when it comes to its business model. This quarter, the company's EBITDA margin ticked up. The paper recognizes Best Buy competitive advantage as being it customer-centricity this implies delivering modified and extremely personalized service to clients. Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Thus attaining Competitive Advantage fortifies and places an organization in a better position within the competitive business world.According to Mentzer 1 after successfully carrying out a survey, which included slightly over thirty of its stores, Best Buy started rolling the strategy of computerizing the quote-to-order process aimed at making it possible for customers to buy in a 24/7 hour basis even if it is on holidays. Analysis: Kohl’s going through ‘soft’ periods, but still has a lot going for it This refers to set of mechanisms and plans that not only places and organization at an upper hand as compared to its competitors but making it stand out in the business environment.On the same note, the company has adopted a way of distributing its goods that is inline with customers demand and aspirations. The company began allowing customers to shop by appointment in mid-June, which helped improve sales through physical locations. People working remotely often need to troubleshoot computing problems. Even when stores open for customer shopping, online sales growth continued to be extremely strong, in fact, last seven weeks of the quarter, online revenue grew approximately 180% over the same period last year. An example where customer centricity was attained through the efforts of store employees is in Pasadena store in which there was a reconfiguration of the place to appeal to suburban mothers (Peppers & Rogers 4) It entailed transferring small electrical appliances to a low rack situated on the walk way of the store from high shelves, this boosted sales of the same to almost two folds.One strategy that was a milestone in taking the business where it is to day is customers’ segmentation. It represented 92% of the company's total revenue. We're here to answer any questions you have about our servicesTo export a reference to this article please select a referencing stye below:Similarly, it is worth mentioning that Best Buy has successfully adopted technological innovation whereby customers need not to come to their stores to select or see those appliances they plan to buy. When I ask men to name their favorite store, the answer is almost always Home Depot, Lowes, or Best Buy.