Best Buy in China

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Case Details:

Case Code : BSTR299
Case Length : 20 Pages
Period : 2003-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Best Buy Co. Inc. Industry : Electronics / Consumer appliances Retail
Countries : China

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Best Buy's history dates back to 1966, when Richard Schultz (Schultz) and his partner opened an audio specialty store called 'Sound of Music' at St. Paul, Minnesota. Business grew, and the partners opened two new stores near the University of Minnesota in 1967...

Going International

Initially, in 2001, Best Buy began looking at options to expand its operations internationally. But company also went about transforming its US business at around this time and the international plans were put on hold. It transformed its US business based on 'Customer Centricity'...

Best Buy Moves to China

After tasting success in the Canadian market, Best Buy planned to move beyond North America, to take advantage of the growing markets in other regions of the world.

According to Patel, "If Best Buy is going to be the leading or biggest player globally in an industry that is already global, it's our inevitable destiny to be in international markets."...

Entry through Acquisition

In May 2006, Best Buy acquired a stake of 75% in Jiangsu Five Star Appliance Co. (Five Star), the fourth largest electronics retailer in China, for US$ 180 million. Five Star operated in the country through 136 stores in eight of the 34 provinces and its revenues were around US$ 700 million in 2005...

Best Buy Opens its Store in China

For its first store, Best Buy found a property owned by Feidiao Electrics Co. Ltd. in Shanghai. It bought four floors of the building for around RMB 250 million...

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