Best Buy Company is one of the companies that initially failed in offshoring decision making. The company is one of the popular companies in the United States. The company was founded by James Wheeler and Richard Schulze in 1966, with its headquarters located in Richfield, Minnesota State ( Hess, 2017 ). Initially, the company was called Sound of Music and later rebranded to Best Buy in 1983 after emphasizing consumer electronics.
Currently, Best Buy Company is located in the United States, Mexico, and Canada. Before 2012, the company operated internationally with locations in Europe, Turkey, and China. Best Buy Company had operated in China for a couple of years until February 2011 when it merged with China's Five Star Company. The company merged with Five Star Company because it failed to differentiate its product lines attributed to China's Market Research group ( Xie et al., 2016 ). According to CNBC contributor, Best Buy Company also failed in determining the local consumers’ shopping preference.
Delegate your assignment to our experts and they will do the rest.
In 2011, Best Buy Company closed their shops in Europe because their poor marketing strategy failed to attract Europeans to purchase their products. Furthermore, the company failed to understand that Europeans preferred to purchase electronics from local vendors ( Groth, 2016 ). Best Buy Company also closed its premises in the United Kingdom due to stiff competition from the British market, economic downturn, and low brand recognition.
Despite Best Buy Company dominating the United States markets, it has proven that the company can significantly struggle to compete with known vendors and social issues. Before Best Buy Company could establish themselves overseas, they needed to delay their expansion until its economy stabilizes. Instead of closing its stores in the United Kingdom, the company could have paired with other UK companies to insure it. Best Buy Company closing their British stores was the most significant admission of failure of the United States overseas expansion strategy.
References
Hess, E. D. (2017). Best Buy Co., Inc. Darden Business Publishing Cases . https://www.emerald.com/insight/content/doi/10.1108/case.darden.2016.000040/full/html
Xie, Y. A., Chen, Z., Huang, X. B., & Qiao, S. Y. (2016, August). Learning from Failure: How to Succeed in the Chinese Retailing Market. In 2016 International Conference on Management Science and Management Innovation . Atlantis Press. https://www.atlantis-press.com/proceedings/msmi-16/25861780
Groth, A. (2016, November 4). Best Buy's Overseas Strategy Is Failing In Europe And China. Retrieved from https://www.businessinsider.com/best-buy-europe-2011-11 (Links to an external site.)
