![]() ![]() The customers of Best Buy are individuals who are looking for computers and other electronic items in reasonable price. The bargaining power of the customers of Best Buy can be identified as low. Therefore, the threat of new entrants is low and Best Buy is taking the benefit of having a major share in the market in US, Canada and Mexico (Best Buy, 2018). This is one of the reasons why retailers are hesitant to enter the consumer electronics market. ![]() The handling of electronic goods requires effective supply chain processes, which is challenging to achieve with limited budget. As far as consumer electronics retail industry is concerned, businesses planning to enter in this sector need to have major capital funds to purchase electronic items, along with managing the logistics and after sales component of the supply chain. The threat of new entrants is defined by the investment needed to set up a new business, ability to attain economies of scale, the government’s regulations etc. The following section entails analysis of Best Buy and its industry dynamics using Porter’s five forces model. Best Buy is a US based retailer which supplies electronic items to the consumers, with main focus on home theater and computer related items. ![]()
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