Best Buy vs. Walmart in Electronics
With Circuit City out of the picture, Wal-Mart plans to be Best Buys’ leading competitor.
With Circuit City out of the picture Wal-Mart is looking to take a piece of the pie in the market of electronics. Right now Best Buy is leading the competition in market share of electronics, and they want to keep that lead so they are coming up with new and improved strategies to stay the leader. Wal-Mart is starting to adopt some of Best Buys strategies to become a competitor in the market.
The marketing mix of both companies can use a bit of improvement in the electronic department. In the product section of the marketing mix both companies have strengths and weakness. Best Buy’s products are everything electronic, that’s there main focus. Best Buy also has excellent service. All their employees on the floor know all the latest and greatest products and they can match you up with the product that fits your needs. Best Buy also has a section in their store called geek squad and they can come to you or your company and fix an issue you have with one of their products. Wal-Mart carries name brands also, but their selection is far less than Best Buys. Although Best Buy’s employees know more about electronics Wal-Mart employees know the basics and their return policy is outstanding. Wal-Mart is known for low prices and you can pick up certain electronics cheaper but Best Buy is working on competing will Wal-Mart’s low prices.
The distributions of both stores are very similar, for example in Kalispell Wal-Mart and Best Buy is visible along roads that have a high volume or traffic passing through each day. They both have online stores where you can order what you want and then pick it up when you are ready to. One aspect that Best Buy has over Wal-Mart is supply and demand there are more products at Best Buy because they have more room to store there electronic products because they don’t have to worry about storing anything but electronics for their store. Wal-Mart doesn’t have as much space because they have to keep all of their other products in stock.
Promotion is another aspect of the two company’s. Best Buy is going to start setting up stations where you can interact with the products such as video cameras, gaming systems, music and home theater systems. The concept try before you buy will let people know the capabilities of what they are looking to buy. There are also black and white VW bugs driving around with a geek squad sign on them to catch people’s attention. The name is also a good promoting tool when you hear Best Buy you automatically think electronics. Wal-Mart also has good promoting aspects to there company. The name reminds you of low prices and customer satisfaction.
4 Comments
*Ahem* Best Buy already offers price matching, therefore the lead is still in Best Buy’s hands. As far as the return policy, 30 days on most everything except laptops, cameras, camcorders etc which are 14 days. Wal*Mart has knowledgeable employees which are hard to find at that. Then again maybe it’s just my point of view.
Errr make that **WalMart doesn’t have knowledgeable employees** sorry
I prefer the employees at walmart over the snobby kids who often work at best buy. When I check out, I don’t want to be hassled about four different things. I just want to come in and be left in peace. I hear those chumps over at Best buy do not even make commission, whats tools!
Yeah the whole non-commission means the employees are geared to getting you what you should get not what’s affecting their paychecks. Most people who are shopping electronics don’t know what they want, or have an idea but don’t know what’s best for them. I don’t know about the Best Buy’s in your area but the ones in mine are fantastic, very knowledgeable and helpful. If I just want to look, they let me just look. If I need help, it’s there. Wal*Mart, on the other hand, you have to go in there knowing what you need and not expect any help. *psst…. Wal*Mart doesn’t give their employees commission either, Richard!*