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SWOT Analysis Of Best Buy

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Best Buy is a popular American multinational retail industry that was formed during the year 1966 and is headquartered in Minnesota, United States. Best Buy started as an audio speciality store named Sound of Music by Richard M Schulze and James.

During the year 1983, it was rebranded under the current name by providing more emphasis on consumer electronics. The company sells consumer electronics and much-related merchandises that include video games, software, mobile phones, music, car stereos, and video cameras.

Under the Geek Squad brand, the Best Buy provides various computer repairs, warranty service, and other plans. It also provides online community forums where consumers can discuss the product; ask questions from other consumers or product experts.

Let us discuss the SWOT analysis of Best Buy.

Strengths in the SWOT analysis of Best Buy

SWOT analysis of Best Buy - 1

Market leader – Best Buy is the market leader in the electronics industry. The company has expanded its operations to many countries like Mexico, China, and Canada by means of various mergers. The company has about 1400 stores.

Brand loyalty and reputation – The Best Buy has battered the rise of the e-commerce giant amazon.com and also other online platforms. This brand is a best-bought brand for many Americans. It ensures that Best Buy is one of the best destinations for customers who look for any electronics either big or small.

High customer reachability- Best Buy reaches many customers with the help of online media. It has a strong and loyal customer base which is a boost to the business.

Huge product line – Best Buy has a wide range of products in consumer durable and it also has its own brand products. Few of their own brands are Dynex, Rocketfish, Insignia, Modal, Init, Pacific Sales, and Magnolia Home Theatre.

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Service plan – The Company has a great service plan for its customers.

Warranty policy – Best Buy products come up with an excellent policy for warranty.

Weaknesses in the SWOT analysis of Best Buy

Brand not popular outside the USA – Best Buy brand is not so popular outside the USA. This is a major weakness for Best Buy as its products are popular only in and around the USA.

High competition – The Company faces tough competition in the consumer durable category.

Price reduction – The price reduction of the products of Best Buy has placed a lot of financial pressure on the finance of the company.

Controversy – During the year 2000, two consumers from Florida has filed a case against the company stating its fraudulent business practices. It was related to the sale of extended warranties or service plan. The company had to finally pay a penalty for its wrongdoing.

Opportunities in the SWOT analysis of Best Buy

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Online media – Best Buy by having its presence in the online media, has attracted more customers. This is a huge opportunity for the company to sell their products to a wide range of customers.

Global visibility – The Company can penetrate into the emerging economies so that it can be visible in the international market.

More stores – Best Buy can increase its opportunities by opening more stores in far off areas of Canada and the US. This will provide an opportunity to increase their sales.

Emergent new technology – By having new technology introduced in TV, smartphones, LCD, LED, and other electronic devices, the company can produce more products and sell them to increase their business revenue.

The Necessity of electronics – Most of the electronic devices is a necessity for every individual and it is required in more numbers.

Threats in the SWOT analysis of Best Buy

Tough online competition – The online competition is tough. There are many companies that sell their products through online like Walmart. This is a serious threat to Best Buy as they should figure out ways to bring customers to their online market.

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Auction sites – The other serious threats to Best Buy is the increasing number of auction sites. When the customer gets products at a low price from the auction sites, they will tend to go for these products.

Change in government policies – The various changes made in the government policies can affect the business operations of the company.

Electronics sold in the US – The various electronics that are sold across the US provide huge discounts and offers. This kind of increasing competition forces setting up low prices for the company thereby leading to a serious threat to the future revenue generation.

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OLX is a platform where the buyer and seller of an exchange item come on a common platform to buy and sell. For this, each of them should be a registered user of this platform. Once they are registered on this platform, the seller can place their products with its features. Once the seller posts their products, people who are registered on this platform can view the details shared by the buyer. This platform has a unique feature wherein the search is tuned as per the location. Buyers and sellers in the nearby area can see each other on the platform and communicate using messaging services. The SWOT analysis of OLX differentiates all the main strengths, weaknesses, opportunities, and threats that give guidance to the company to scale up more. Readout this article, to get an understanding of where OLX stands. The SWOT analysis of OLX indicates the strengths of the brand in which the brand is good and what differentiates it from its competitors, its weakness that stops the brand from performing well and should focus on to improve. It lists its opportunities that the brand can use to increase its market share and brand value. It also throws light on the threat that has the potential to harm the brand. To make sure that OLX meets the long-term competitive advantage, it must address the various concerns highlighted in the SWOT analysis of OLX. Let us discuss on the SWOT analysis of OLX. Strengths in the SWOT Analysis of OLX 1) Large Presence – OLX has its presence in more than 100 countries. This is an excellent strength for the brand. Having a significant presence in many countries would see many users created on the platform. When there are more users on the platform, it means that people make use of this platform to buy and sell. 2) Brand Image – OLX has a strong brand image and has about 11 billion page views. Also, it sees about 200 million active users per month, 8.5 million transactions per month, and 25 million listings. This shows that the brand is visible across the country, and it is known to many people. Having a strong brand image is the main strength of the brand. 3) Strong Backup – OLX sees a strong back up by Naspers. It has a lot of experience in working with various eCommerce giants. Because of this, there can be a lot of input from the backup. This is the main strength of the brand. 4) Strong Advertising Campaign – Yet another strength of the brand is its strong marketing efforts. It has an excellent marketing strategy, and its advertisements are popular on television, radios, many online channels, etc. Due to its marketing efforts, its brand value has increased. Many people are aware of this online platform and use it. Its advertisement is quite popular in online media. 5) Strong Vehicle Category – OLX has a strong place in the vehicle category. It sees many sellers placing ads to sell their vehicle, and there are many buyers to purchase as well. The vehicle category alone sees around 850 million page views per month. This is indeed a vast data and the main strength to highlight the brand. 6) C2C Market Leader – OLX seems to be India’s market leader in the C2C business. This is also the main strength of the brand. It has fewer competitors and one reason to have many users on its platform. 7) No Specific Product – OLX has no limitations with regards to products. It has a massive portfolio of products where users can place their advertisements. 8) Business Model – OLX is one of the biggest free online classified platforms. Its business model is unique and presents it finely. It has an online platform where people buy or sell products. It is spread across many cities in India. 9) Many Functions – On the OLX platform, a user can easily design many rich advertisements with beautiful images. A user can also control the buying and selling activities in the OLX platform. It also has a feature where a user can display their ads on any social networking platforms. Users can access the OLX website from anywhere, and it also has an app to support. 10) Easy Availability of Products – This platform gives easy access to customers to get any products at less cost. Customers can access their beautiful websites with rich and featured listing. 11) Huge Market Share – OLX has managed to get about 60% of the online classified market share. This is a significant strength to the brand, and its traffic has also grown to 55 times over the past few months. Even, the OLX app has exceeded 3.2 million downloads in India. Weaknesses in the SWOT Analysis of OLX 1) Technology-oriented – OLX is heavily dependent on technology, and it lacks features to convert non-internet users as potential customers. This is a great weakness for the brand because the number of users would reduce. 2) Competition – There are many competitors from the offline mode as well. Many people try to sell their products using many other ways like WhatsApp, word of mouth, etc. This is also a weakness for the brand because the users would reduce. 3) No Quality Assurance – As many buyers and sellers meet online, and various discussions take place online, there are chances that the quality would go off. Till the buyer sees the product and understands its features and use it, there is no guarantee on the product. This is also a weakness for the brand. 4) Online Fraud – As OLX is entirely an online platform where many people meet online and discuss their sale and purchase, there is a chance that it can enter fraudulent activity as well. 5) Fake Ads - As OLX is entirely an online platform where many sellers post many ads, there are chances that people post fake ads as well. 6) Delay in Response – As OLX is entirely an online platform, it is dependent on people to log in to check for an update on their products. There would be a delay in response and for the product to be sold. Opportunities in the SWOT Analysis of OLX 1) Increasing Products – OLX sees more opportunity if they diversify on its products listing. It could have many subcategories of products, and this would bring more opportunity for sellers and buyers to glance through their requirements. 2) Increase in Offline Channel to Advertise – OLX can increase on its advertising channel by setting up an offline channel so that it could bring more brand awareness about its platform. This would also get more customers to get into their platform. The brand can brief the audience about its features and ways to use it. 3) People Choice – This platform is ideal for users who can wish to purchase their products as per their wish at less cost. So, there is a lot of opportunity for this platform. 4) Many Sellers – This platform brings a lot of opportunity for the sellers as they can sell their products and benefit out of it. With this, the online platform also sees more users using it, ultimately leading to huge traffic. 5) OLX Jobs – This online platform can increase its offering by listing job opportunities as well. This would see more chances of its business and improve the user count as well. 6) Real Estate Property – OLX has also entered listing of real estate and sees many opportunities to expand. Threats in the SWOT Analysis of OLX 1) Competitors – OLX sees many competitors at a similar domain, and this is a big threat for the brand. Investors have funded its competitor Quickr. So, OLX is at threat. 2) Offline Stores – Many offline stores sell second-hand products at a discounted price. This is also a threat to the brand. People would prefer to visit the offline store so that they could see and feel the product before purchase. Conclusion The SWOT analysis of OLX mentioned in this article has highlighted the main strengths of the brand that comes up from its brand value, having a significant presence in the country, having a strong backup, excellent marketing efforts, a strong presence in the vehicle category, being a market leader in C2C, availability of many products, having a unique business model, easy accessibility, and a considerable market share. The weakness of the brand is its technology-oriented platform where it is tough to get many non-internet users to the platform, having many competitions from the online and offline mode, no quality assurance, online fraudulent, fake ads, and delay in response. Its opportunities are seen on increasing its product listing, entering the offline mode to raise its brand awareness, having many sellers, allowing people to select their products, OLX jobs, and entering real estate business. It sees a threat from its many competitors like quickr, eBay, and many more, and many of the offline stores that sell second-hand products.SWOT Analysis of OLX SWOT ANALYSIS OF PATANJALISWOT analysis of Patanjali – Patanjali SWOT analysis SWOT Analysis of AdobeSWOT Analysis of Adobe
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About Hitesh Bhasin

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