Best Buy Company, Inc Analysis Case Study Example | Topics and Well Written Essays - 1250 words

Best Buy Company, Inc Analysis - Case Study Example There are few factors which can effect the company i.e economic forces, social forces, cultural and environmental forces, Political, legal and governmental forces, technological forces, and competitive forces. There always been ups and downs in the economy. Either there is inflation or deflation. If the GNP is higher in the economy the income also increases and people can spend their incomes on different items. From last few years US is enjoying healthy economy. That factor is helping the retail industry as well. In future Best buy company profit may increase by as the trend shows. â€Å"Increasing GDP would be good for companies like Best Buy; however the smaller increases in GDP can have a negative effect on not only Best Buy’s sales, but Best Buy’s stock price if investors predict that GDP will fall in the future.†Ã‚  Best Buy Company is also socially committed and believes in literate people about technology. They are socially responsible. The company spent $ 13 million in teach Awards for the school to aware them from the new technologies about the classrooms. They also gave scholarships to the students all over the world. â€Å"Best Buy stores have awarded over $13 million in scholarships to nearly 11,000 students nationwide.†In this modern world, where every day new technologies are coming up and frequently they are becoming outdated. Under this scenario, the Best buy company has to keep itself up to date and must have to keep watch on the new technologies.... Social Forces: Best Buy Company is also socially committed and believes in literate people about technology. They are socially responsible. The company spent $13 million in teach Awards for the school to aware them from the new technologies about the classrooms. They also gave scholarships to the students all over the world. "Best Buy stores have awarded over $13 million in scholarships to nearly 11,000 students nationwide." (http://communication.bestbuy.com) Technological forces: In this modern world, where every day new technologies are coming up and frequently they are becoming outdated. Under this scenario, the Best buy company has to keep itself up to date and must have to keep watch on the new technologies. In this way the company can survive under intense competition. Legal and governmental Forces: Wisconsin State Attorney General's office took a serious civil action against Best Buy Company In 2005. They stated that the company is violating the consumer protection law by misleading the people about service plans, supplemental magazine subscriptions etc. Competitive forces: Where the company is enjoying healthy profits, there the company is also facing intense competition. The biggest competitors of Best Buy Company are Dell, Wal-Mart, Circuit City and all those retailers which are supplying those products on reasonable prices. The company should also bring some changes in their business to stay in the top line. Like, they should also offer their products online as other companies are doing. "To help overcome online competitors, Best Buy allows consumers to purchase their items online. Consumers then have an option of