I read an article about US retailer Best Buy's challenge to the European market. They recently 50% of Britain's Carphone Warehouse. And it cost them about $2.1 billion. They are a great electronic retailer and they achieved high performance in US, even in the recessions. Then what made them so urgently? It's because of their globalization. The world is changing day by day and markets of the world are integrating. Though Best Buy is a giant retailer, the advantage can disappear within a few years. The integrated labor force and supply chain can make a great retailer company. If Best Buy satisfy themselves and don't try to change their strategies, they will fail in business.
Best Buyer's choice is European market. Europe's customers have slow buying tendency and they don't change their elecronics rapidly. Because of these difficulties, they decided to progress their strategy step by step. Though they shared most of Europe retailers, they will not use their name immediately. Actually, they use other European retailer's brand. Of course, a few years later, they will use their own brand names. But in the market development process, companies have to inform customers their brands. If they just injected their name through ads, they cannot get positive image.
But there are many criticisms about Best Buyer. Critics say that the planned process can be harder than first thought. Firstly, European customers buy electronics less frequently than US customers. And also recessions of European economies are obstacles of Best Buy's challenge. Thirdly, the main product of Best Buy is carphone. And carphones are not translated into mainstream products.
I think Best Buyer's challenge is essential to the future of Best Buyer. If they don't do any challenges they will fails soon. Korean companies also face situations like Best Buyer. Many of our global companies are now facing some difficulties in competing with world class companies. We have to find the Blue Ocean. If we cannot do things like that, we will lose in global competition. Change is dangerous but necessary to the survival. It's time to change and innovate our entire structures.
Author: Mark Scott
Title: 'Best Buy Barges into Europe'
Date: May 8, 2008, 1:28PM EST
Page: 1
20700067 entry # 9
No comments:
Post a Comment