Case 22 Best buy

III External Environment

Opportunities and Threats (SWOT)

1. Opportunities will be through acquisitions, expansion of their product line

2. Declining sale and are due to online competitors.

B. Societal Environment

1. Economic: Due to the current economic downturn consumers are not spending as much. Threat

2. Technological: The use of smart phone is currently affecting Best Buy market shares (T)

3. Political-Legal: Lawsuit due to unethical practices. (T)

4. Sociocultural: Consumer are make more and more purchases online – Threat

C. Task Environment

1. Threat

1. The use of the internet is -  moderate to High  

2. Circuits City Bankruptcy opens the door for new competition - High

1. Bargaining power of buyers (High)

1. 1. Price match program allow customers to purchase from other retailers Best Buy doesn't match the competitor prices

2. Threat of substitute products or services

1. 1. Best Buy customer service is hard to imitate. (Low)