1. Environmental and SWOT Analysis for Best Buy Co., Inc.
Kurt Mullins

2. Macro- and Micro-Environmental Analysis
Macro-Environmental Analysis
Technological advances
Economic downturn
Political and regulatory
Socio-cultural
Micro-Environmental Analysis
Industry
Competition
Suppliers

3. Macro-External Environmental Analysis
Technological advances
Frequent introduction of new products.
The emergence of online competitors in comparable markets.
Product lifestyle and prices decrease causing margins to decrease.
Economic Downturn
Not necessity products
Less disposable income
Low-interest financing are given to customers.

4. Macro- External Environmental Analysis
Political and Regulatory
Federal Reserve Regulations due to credit card crisis
Restricts companies from offering differed interest financing to customers.
Socio-cultural
Change in leadership in an economically tough time.
The new CEO is a new-blood CEO.

5. Micro-External Environmental Analysis
Industry
Electronics industry grew during the financial crisis.
Barriers to entries have diminished due to globalization.
Internet purchasing has negated customer loyalty barrier.
Barriers to entry still include economies of scale and advertising.
Supplier
Geek Squad
Magnolia Audio Video
Pacific Sales

6. Micro-External Environmental Analysis
Competition
Brick and Mortar Competitors
Wal-Mart Stores, Inc. (Customer Service Market)
GameStop Corp. (Video Game Market)
Radio Shack Corp. (Music and Sound Market)
Online Competitors
Amazon.com, Inc. (Online Retailer Market)
Netflix, Inc. (Online Video Streaming Market)

7. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

8. Strengths
Accounts for 19% of their market as a consumer electronics retailer.
Trained employees with extensive product knowledge.
Recognize each customer is unique and knowledge how employee can gain maximum enjoyment.
Plenty of high-quality suppliers.
Superior customer service.
Top-notch products.

9. Weaknesses Inexperienced CEO.
High priced products during a economic downturn.
The financial stress.

10. Opportunities Continued expansion and acquisitions.
Great time to “rev-up” the current strategy in an attempt to not fall behind.
Create more innovative products.
Even more extensive training for upper- and lower-level managers and even employees.
To lower long-term debt compared to cash from the discrepancy in

11. Threats Best Buy’s financial strength.
Quality of Best Buy’s customer service.
Federal Reserve restrictions on credit cards.
Increased competition within their market.
The economic downturn.

12. Conclusion
The company’s Environmental and SWOT analysis shows where the company is compared to it’s external information and how and where the company can go ahead in the future.

13. Thanks for your attention! Any questions?

14. References
Hill, C. W. L., and Jones, G. R. (2013). Strategic management, an integrated approach (pp. C17-C25), 10th ed.). Mason: South Western. ISBN