International Expansion of the Best Buy Company
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This report explores the benefits of international expansion for the Best Buy company. The paper examines the history of the company and focuses on the UAE as a potential market, with a legal, technological, political, demographic, and cultural analysis. In addition, the report discusses entry mode strategies, including the benefits and disadvantages of doing business in this foreign market. The paper finds that despite drawbacks associated with business initiatives in the UAE, there are more extensive advantages that mostly relate to high income, environmental stability, and low taxes.
From the Paper:"Best Buy is a Minnesota-based company, which is a leading electronics retailer in the United States. In 1966, Richard Schulze and his partner opened the first store of a company identified as Sound of Music, Inc., in St. Paul, Minnesota, with the sole purpose to capture a share of the Twin Cities' home and car stereo market. In 1970, Schulze demonstrated persistent intentions to expand the retail chain, and thus a relevant decision was to buy his partner (Best Buy Official Website, 2011). Yet a certain limitation faced by the company in the 1970s related to the fact that offered products were only represented by audio components. This situation was quite persistent until the 1980s. During that period, Schulze realized that his company could not progress with limited resources. He showed strong willingness to explore various dynamic possibilities that could enhance the position of the company.
"One of the improvements was associated with expanding the product line of Sound of Music in the sense of including appliances and VCRs. This obvious change in organizational strategies led to a significant increase in the company's sales. In 1983, the company Sound of Music renamed itself Best Buy, and it openly claimed its orientation toward older and more stable customer base."
Sample of Sources Used:
- Abraham, A. (2011). 'UAE citizens' adopting humble spending habits.' Arabian Gazette.Retrieved on December 17, 2011, from http://arabiangazette.com/uae-citizens-adopting-humble-spending-habits/
- Best Buy Official Website. (2011). Company information. Retrieved on December 17, 2011, from http://www.bestbuy.com/site/olspage.jsp?id=cat12114&type=page
- "Doing Business in the UAE." (2009). Communicaid Group Ltd. Retrieved on December 17,2011, from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20the%20UAE.pdf
- Holmes, D.E. (2003). Dual branding: Legal structures and choices, operational and other issues. HolmesLofstrom.com. Retrieved on December 17, 2011, fromhttp://www.holmeslofstrom.com/z_pdf/articles/franchise_operations/The%20Dual%20Branding.pdf
- Suter, B. (2005). Labour migration in the United Arab Emirates: Field study on regular andirregular migration in Dubai. Master Thesis. IMER, Malmo University, Sweden.
Cite this Case Study:
International Expansion of the Best Buy Company (2014, January 02) Retrieved August 22, 2019, from https://www.academon.com/case-study/international-expansion-of-the-best-buy-company-153782/
"International Expansion of the Best Buy Company" 02 January 2014. Web. 22 August. 2019. <https://www.academon.com/case-study/international-expansion-of-the-best-buy-company-153782/>