Best Buy Elyse Devries, Christopher ragan, Isaac SHubert, James Tompkins

https://spark.adobe.com/video/EzDwjdGa0dYJ3

Proposed Change

Implement a discount on Geek Squad services to Best Buy's current membership program

Current Rewards Program

Three basic levels of membership

  • My Best Buy
  • Best Buy Elite
  • Best Buy Elite Plus

Exact implementation...

10%, 20%, 30%

Benefits

SWOT Analysis

Strengths

  • Geek Squad owning majority market share for electronic repair
  • 5.93 inventory turnover

Weaknesses

  • Loss of sales of $1 billion over the past two years
  • $52 million cash decrease

Opportunities

  • Decrease in long-term liabilities
  • stable sales drop of $1.5 billion from 2015 to 2017

Threats

  • Apple having 39.1% of the market share of the computer store industry
  • Total asset turnover of 2.84 compared to the industry average of 3.4

Kotter Change Movement Urgency

  1. Urgency: Improve customer traffic
  2. Guiding Coalition: Marketing team
  3. Strategic Vision: Improve Geek Squad's revenue stream
  4. Volunteer Army: Best Buy Employees
  5. Action to Remove Barriers: Pushing memberships to counteract initial loss from discount
  6. Short-term lens: Loss of profit
  7. Sustain acceleration: Pushing for membership through Geek Squad rewards
  8. Institute Change: Best Buy marketing management
Conclusion

Implementing this discount would increase Best Buy-customer relationship and would be able to increase profit without the cost of corporate restructuring.

Page Sources

http://donthatethegeek.com/geek-squad-agent-accused-searching-computers-fbi/http://minnesota.cbslocal.com/tag/geek-squad/

https://www.technobuffalo.com/2012/03/29/best-buy-to-cut-400-jobs-close-50-stores/

http://segmentnext.com/2014/08/11/elgato-game-capture-hd60-leaked-via-best-buy-ad-priced-at-179/

https://sibatmedia.wordpress.com/category/technology/page/2/

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