Best Buy's Two-Step Begins to Click...

[zalapski]

It appears Best Buy's strategy of buying Future Shop and maintaining the two brand name approach has worked out quite well. Doubling their market share with plans for further expansion. Link to Report on Business article.

.

Interesting comment:

"It increases the choice to the consumer," ... well, not sure that I 'buy' that. The two-brand strategy is, no question, a powerful corporate strategy. Don't kid yourself, it has NOTHING to do with what is good for the consumer. It has more to do with what the consumer perceives is good for them. Most consumers DO NOT realize that Future Shop and Best Buy are the same company. Where this strategy is most powerful is co-location... i.e. FS and BB locating their stores within blocks, or at least, km's of each other. FS and BB typically do not price similar products the same... especially advertised deals. The consumer shops one outlet, then checks out the other. They see the 'strategic' price difference and either buy from the lower, or ask for the price guarantee. As a result, the consumer walks out feeling good about how they shopped and got the best deal. But what the consumer did not do is shop somewhere else.

The real FS / BB corporate strategy is to become their own 'consumer perceived' competition, thereby, placating the consumer's need to feel they have done their homework and have the best deal.

[jaigandhi5]

DISTINCTIONS

FUTURE SHOP

commissioned sales staff

more high-end home theatres

attracts more immigrant customers

attracts more tech-savvy customers

BEST BUY

more self-service, no commissioned sales staff

more ready-made electronics packages

attracts more women customers

wider aisles, more interactive displays

[Badman]

lol how does FS get more immigrant customers?

interesting way and even i think thats a good business strategy.

[B40]

lol how does FS get more immigrant customers?

interesting way and even i think thats a good business strategy.

They feel more patriotic shopping at a store that's red/white

[joeschmo]

Theres a small article in todays financial post about their market share and how best buy wants to pursue tscc style smaller stores.

[aidzhsiah]

Most consumers DO NOT realize that Future Shop and Best Buy are the same company.

At least until they try to get Future Shop to give them the 110% PM with Best Buy

[atforum]

What is so surprising? Who are they competing with??

[CanadianN00b]

DISTINCTIONS

BEST BUY

more self-service, no commissioned sales staff

more ready-made electronics packages

attracts more women customers

wider aisles, more interactive displays

Does this go hand-in-hand

[just_For_ipod]

Does this go hand-in-hand

lol, dunno about the attracting more women part, but it does feel like the isles at best buy are wider... am I imagining things?

[Tijuana]

artificial competition

[illusion81]

More like immigrant employees

lol how does FS get more immigrant customers?

interesting way and even i think thats a good business strategy.

[gman]

I always say their strategy works well.