Best Buy is the largest consumer electronics retailer in the USA, with 2015 sales of over $50 billion. The company competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and target, but it is also known by consumers for its first-rate customer service. Best Buy consumers have commented that the retailer' sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features that are valued by many customers. How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A Differentiation strategy? A best-cost strategy? Explain your answer.
Best Buy is the largest consumer electronics retailer in the USA, with 2015 sales of over $50 billion. The company competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and target, but it is also known by consumers for its first-rate customer service. Best Buy consumers have commented that the retailer' sales staff is exceptionally knowledgeable about the company's products and can direct them to the exact location of difficult-to-find items. Best Buy customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's Geek Squad tech support and installation services are additional customer service features that are valued by many customers.
How would you characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy? A Differentiation strategy? A best-cost strategy? Explain your answer.
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