Best Buy Case Study Post


This blog post is my submission for the assigned blog post.

The advantages of being a privately owned company include shared ownership of the company, there is limited liability, the investors hold managerial control over the company, and a company can fluctuate in and out of stability with out any pressure from the media.

The advantages of being a publicly traded company include the ability to earn more money, the company can be traded on the stock market, the company can have access to more money in case of any future financial needs, and it is easier to promote the company as a whole.

In 2013 Best Buy differentiated itself from the rest of its competitors by creating a commercial for the 2013 superbowl featuring a well known comedian and focused on promoting the “blue shirt” experts in electronics and customer service. Also in 2013 Best Buy issued a news release that announced its ending of “showrooming” and its new focus of a low price guarantee.

“Showrooming” became a problem for Best Buy because its customers would come into the store test out the products in the store then order them online for a cheaper price than what was offered in the store.

Some other issues that affected Best Buy’s financial performance was when the CEO resigned due to improper relations with a co-worker and the founder also quit at the same time the CEO left. The best buy stores were too massive in size. Best Buy also declined any buyouts.

The former founder of Best Buy was working with a group of investors to purchase a minority stake in the company to help enhance the company’s financial position.

Best Buy, got rid of the showrooming problem and began to focus on offer best price guarantees, and have great customer service. They also developed connect stores a scaled down version of the massive brick and mortar store all apart of the overall marketing strategy.

The role of financial analysts for investors is to gather all the necessary information about a company and advise the investor about making good financial decisions.

Best Buy’s investor Relations website looks good to me, I have not looked at any other investor relations websites before. But this one isn’t over the top but it also isn’t lacking in information either.

Here is a link to the website:



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