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Best Buy Co., Inc.: Competing on the Edge SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Best Buy Co., Inc.: Competing on the Edge


While Circuit City struggles, Best Buy has overtaken it to become the premier consumer electronics retailer in the United States. What has driven its success? How can it be sustained?

Authors :: John R. Wells, Travis Haglock

Topics :: Strategy & Execution

Tags :: Competition, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Best Buy Co., Inc.: Competing on the Edge" written by John R. Wells, Travis Haglock includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Buy Overtaken facing as an external strategic factors. Some of the topics covered in Best Buy Co., Inc.: Competing on the Edge case study are - Strategic Management Strategies, Competition, Strategy execution and Strategy & Execution.


Some of the macro environment factors that can be used to understand the Best Buy Co., Inc.: Competing on the Edge casestudy better are - – there is backlash against globalization, increasing energy prices, technology disruption, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, etc



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Introduction to SWOT Analysis of Best Buy Co., Inc.: Competing on the Edge


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Best Buy Co., Inc.: Competing on the Edge case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Buy Overtaken, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Buy Overtaken operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Best Buy Co., Inc.: Competing on the Edge can be done for the following purposes –
1. Strategic planning using facts provided in Best Buy Co., Inc.: Competing on the Edge case study
2. Improving business portfolio management of Buy Overtaken
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Buy Overtaken




Strengths Best Buy Co., Inc.: Competing on the Edge | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Buy Overtaken in Best Buy Co., Inc.: Competing on the Edge Harvard Business Review case study are -

Operational resilience

– The operational resilience strategy in the Best Buy Co., Inc.: Competing on the Edge Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Analytics focus

– Buy Overtaken is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by John R. Wells, Travis Haglock can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Strong track record of project management

– Buy Overtaken is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Innovation driven organization

– Buy Overtaken is one of the most innovative firm in sector. Manager in Best Buy Co., Inc.: Competing on the Edge Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Training and development

– Buy Overtaken has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Best Buy Co., Inc.: Competing on the Edge Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Successful track record of launching new products

– Buy Overtaken has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Buy Overtaken has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Sustainable margins compare to other players in Strategy & Execution industry

– Best Buy Co., Inc.: Competing on the Edge firm has clearly differentiated products in the market place. This has enabled Buy Overtaken to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Buy Overtaken to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Buy Overtaken are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Organizational Resilience of Buy Overtaken

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Buy Overtaken does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Effective Research and Development (R&D)

– Buy Overtaken has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Best Buy Co., Inc.: Competing on the Edge - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Highly skilled collaborators

– Buy Overtaken has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Best Buy Co., Inc.: Competing on the Edge HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Diverse revenue streams

– Buy Overtaken is present in almost all the verticals within the industry. This has provided firm in Best Buy Co., Inc.: Competing on the Edge case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.






Weaknesses Best Buy Co., Inc.: Competing on the Edge | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Best Buy Co., Inc.: Competing on the Edge are -

High bargaining power of channel partners

– Because of the regulatory requirements, John R. Wells, Travis Haglock suggests that, Buy Overtaken is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Products dominated business model

– Even though Buy Overtaken has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Best Buy Co., Inc.: Competing on the Edge should strive to include more intangible value offerings along with its core products and services.

Aligning sales with marketing

– It come across in the case study Best Buy Co., Inc.: Competing on the Edge that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Best Buy Co., Inc.: Competing on the Edge can leverage the sales team experience to cultivate customer relationships as Buy Overtaken is planning to shift buying processes online.

No frontier risks strategy

– After analyzing the HBR case study Best Buy Co., Inc.: Competing on the Edge, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

High cash cycle compare to competitors

Buy Overtaken has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Interest costs

– Compare to the competition, Buy Overtaken has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Best Buy Co., Inc.: Competing on the Edge HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Buy Overtaken has relatively successful track record of launching new products.

Slow to strategic competitive environment developments

– As Best Buy Co., Inc.: Competing on the Edge HBR case study mentions - Buy Overtaken takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Buy Overtaken supply chain. Even after few cautionary changes mentioned in the HBR case study - Best Buy Co., Inc.: Competing on the Edge, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Buy Overtaken vulnerable to further global disruptions in South East Asia.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Best Buy Co., Inc.: Competing on the Edge, is just above the industry average. Buy Overtaken needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

Increasing silos among functional specialists

– The organizational structure of Buy Overtaken is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Buy Overtaken needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Buy Overtaken to focus more on services rather than just following the product oriented approach.




Opportunities Best Buy Co., Inc.: Competing on the Edge | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Best Buy Co., Inc.: Competing on the Edge are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Buy Overtaken is facing challenges because of the dominance of functional experts in the organization. Best Buy Co., Inc.: Competing on the Edge case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Buy Overtaken can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Better consumer reach

– The expansion of the 5G network will help Buy Overtaken to increase its market reach. Buy Overtaken will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Buy Overtaken can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Buy Overtaken can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Learning at scale

– Online learning technologies has now opened space for Buy Overtaken to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Buy Overtaken to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Buy Overtaken in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.

Loyalty marketing

– Buy Overtaken has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Manufacturing automation

– Buy Overtaken can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Buying journey improvements

– Buy Overtaken can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Best Buy Co., Inc.: Competing on the Edge suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Buy Overtaken can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Buy Overtaken to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Buy Overtaken to hire the very best people irrespective of their geographical location.

Building a culture of innovation

– managers at Buy Overtaken can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.




Threats Best Buy Co., Inc.: Competing on the Edge External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Best Buy Co., Inc.: Competing on the Edge are -

Stagnating economy with rate increase

– Buy Overtaken can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Buy Overtaken business can come under increasing regulations regarding data privacy, data security, etc.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Buy Overtaken will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Buy Overtaken with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Regulatory challenges

– Buy Overtaken needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Buy Overtaken.

Consumer confidence and its impact on Buy Overtaken demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Easy access to finance

– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Buy Overtaken can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Best Buy Co., Inc.: Competing on the Edge, Buy Overtaken may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

Technology acceleration in Forth Industrial Revolution

– Buy Overtaken has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Buy Overtaken needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

High dependence on third party suppliers

– Buy Overtaken high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Buy Overtaken needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.




Weighted SWOT Analysis of Best Buy Co., Inc.: Competing on the Edge Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Best Buy Co., Inc.: Competing on the Edge needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Best Buy Co., Inc.: Competing on the Edge is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Best Buy Co., Inc.: Competing on the Edge is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Best Buy Co., Inc.: Competing on the Edge is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Buy Overtaken needs to make to build a sustainable competitive advantage.



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