Best buy is regarded as one of the best electronic retail selling companies in China because it produces a variety of products to the customers. The retail organization is normally said to be associated with a niche consumer market which results in a high demand for their products by the Chinese consumers. This factor has, in turn, led to the reduction in price pressure for the items that they produce. The best buy retail Inc. has identified this opportunity as a way of increasing its revenue by offering guarantees on financing options and on the products as well. From such kinds of approaches, it can be observed that indeed the retail organization is very strategic and capable of penetrating the electronic markets. This paper, therefore, tries to look at the effect that is brought about by the existence of consumer diversity when it comes to product marketing and distribution. Moreover, it discusses some of the theories and strategies that are utilized by the retail organization to improve their production process of the commodities.
Consumer diversity poses certain impacts on the marketing and distribution of the commodities. The first impact in is the fact that the where there is customer diversity like say as observed with the Best Buy Inc., then to some extent it promotes the reputation of the company because where there is diversity there are so many customers for sure (Bustillo, 2012). Many customers would want to be associated with companies that have a lot of customers because such kinds of companies are believed to produce quality and are also diversified in their production. Diversity is understood in the sense that the company is flexible enough to meet the diversified needs of the customers. Therefore, the existence of diversity in customers would boost the market sales and distribution of the commodities.
Use your promo and get a custom paper on
"Best Buy Inc. Case Study".
Another is the effect that is associated with diversity is that it may result in a lot of pressure from the customer’s. This is observed from the fact that some customers may be so arrogant and might criticize the firm when their demands are not met in time, or when they feel the price of the products they need are a bit high. Normally the company deals with a lot of customers who are different in terms of social class, tastes, and preference. If one considers the social class factors it can be observed that there are some rich customers who are choosy and they don’t just go for any product that everyone is going for (Matzler, Veider, & Kathan, 2015). They are very specific and would want to purchase products that are designed according to how they want it. In most cases, such a scenario is normally difficult to handle especially when the specific product is rare to find. The company, therefore, goes through a lot of burdens just to see to it that it doesn’t lose such kinds of customers by making sure that they get whatever they want when at the same time trying to consider the demands on the majority.
These are some of the challenges that the Best buy retail Inc. normally goes through. Anyway, they have been able to come up with some theories and strategies of combating such kinds of challenging situations. One of the strategies that they have managed to come up with is to diversify their products and the supply companies so that they have like almost every item that a customer might want (Laudon, & Traver, 2013). This way they have been able to meet the needs of almost every customer. More importantly, the company also developed a theory that there is need to conduct a research on the changing taste and preference of the customers and get the updates of the dynamic trends that pop up in the day to day life so that they are not left behind. This way if a customer happens to ask for the latest brand of a product they can be able to produce in the shortest time possible.
- Bustillo, M. I. G. U. E. L. (2012). Best buy forced to rethink big box. Wall Street Journal, (March 29), B1.
- Matzler, K., Veider, V., & Kathan, W. (2015). Adapting to the sharing economy. MIT.
- Laudon, K. C., & Traver, C. G. (2013). E-commerce. Pearson.
