Best Buy Inc. – Dual Branding in China Harvard Case Solution & Analysis

Issues identification

            Best Buy Inc. was the largest retailer of Consumer Electronics (CE) market in the United States that acquired Five Star, which was the third top retailer in 2006 of home appliances and consumer electronics in China. The management of the Best Buy Inc. was considering the dual branding option. The issue in the case rotates around whether Best Buy Inc. acquired Five Star to compete in the market or to promote its brand image individually. If Best Buy Inc. would acquire Five Star as a result of it, then Five Star would lose its brand image or would be viewed from a better perspective as a Best Buy Inc. stakeholder in the Chinese market. Best Buy Inc. successfully implemented Dual Branding strategy in Canada in the past that was one of the main reasons for the company to opt an option again in the Chinese market. The biggest risk involved in this strategy was the Dual Branding itself because it was not easy to promote multiple brands simultaneously. The founder of the Best Buy Inc. also had concerns over the implementation of Dual Branding strategy because he said that it was never done before. Best Buy Inc. and Future shop got ample amount of success while working together as an independent brand in Canada. However, one of the questions was that whether Dual Branding strategy was effective in China keeping in view the different retail environment?


Management plan

            A management plan gives researchers the opportunity to explicate the goals, objectives and planned procedures of their anticipated projects in detail. It comprises the standard ways for adopting various strategies and goals. The shorter the organization; the smaller is the management plan of the company and the larger the organization; the more diversified and detailed is the management plan of that company.

Objectives and Goals

            Best Buy Inc.’s prime objective was to enter in the Chinese market via Dual Branding Strategy. Keeping in view, the level of competition and other macroeconomic factors, Best Buy Inc. aimed to achieve a sufficient amount of success in China by utilizing low labor cost element and other factors.

How to achieve the Goals

            Best Buy Inc. should be aggressive in its approach and revise its promotion and advertising activities to further boost the business in the Chinese market. According to the McKinsey Global Institute, China will become the world’s third biggest consumer market by 2025, so this is one of greatest opportunities for Best Buy Inc. because they are also dealing in the consumer market. Best Buy Inc. also needs to hire the services of dedicated and professional sales and marketing personnel to effectively motivate and attract customers to become a part of the company. They should focus on customer oriented approach as per the Chinese market and buying behavior of the people. Pricing strategy should be effectively implemented and the price penetration strategy should be adopted by Best Buy Inc. so as to encourage customers. Market segmentation strategy should also be implemented as per the consumer demographics in the China. Usually, people in China prefer their own brand so Best Buy Inc. needs to look seriously on this factor and motivate customers by offering various discounts and other schemes efficiently and effectively.

Delegation of Authorities

            Best Buy Inc. should consider the previous successful management strategy adopted in Canada of giving value to the district managers. Each division should be divided into number of regions under the leadership of Vice President by monitoring the store performance via regional managers. District managers should effectively monitor the entire store operations. One of the core responsibilities of the manager is to assign the right candidate the right job for the organization’s best interest. Every employee should participate in the organization’s success. The biggest responsibilities of the top managers should be to identify the employees as per their best capabilities and expertise so as to ensure the highest performance level..................................

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