Best Buy Research Paper

4052 Words Jul 6th, 2005 17 Pages
The roots of Best Buy Co., Inc. can be traced back to St. Paul, Minnesota. This is where founder Richard Schulze opened the doors of his Sound of Music store in 1966. Understanding a demand for consumer audio components and systems in the St. Paul area, Schulze managed to provide a combination of great prices and excellent service, thus building a strong customer base, which quickly prompted an expansion into home appliances and video products.
The eighties prompted change as well as the opening of Best Buy's first superstore. During 1983, a new corporate name was approved and the Sound of Music Company became known as Best Buy Co., Inc. With mounting consumer support Best Buy continued its road to expansion by opening an additional
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enlists the expertise of a centralized marketing staff to purchase store merchandise (FAQ). Stationed at the company's corporate office in Richfield, Minnesota, this team is responsible for all aspects of merchandising; including assortment, pricing, and promotion. Product lines carried within store locations fall into four principal categories: consumer electronics, home office, entertainment software, and appliances. Consumer electronics including but not limited to TV's, DVD players, home theater systems, personal audio and video, cameras, mobile audio, satellite systems provide 39% of annual sales. Home office products such as computers, printers, paper, wireless communications, scanners, ink contributed to 34% of revenues. Providing 22% of the company's revenue, the entertainment software segment includes DVD's, CD's, video games, and computer software. Approximately 6% of the company's reported revenues results from the sales of appliances, which include all major household appliances, microwaves, vacuums, refrigerators, and more (FAQ). In addition to providing brand name products to the consumer retail market, Best Buy store locations provide customers with a large selection of accessories designed to complement the principal products as well as boost revenues. Additionally, store locations provide installation and service programs on many products sold.
Another consumer favorite, Geek Squad, was purchased by Best

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