Best Buy is one of the strongest retail models around, that encounter
some of the more complex marketplace challenges, and have found
solutions allowing them to push on through these difficult times. The
New York Times and Matt Richtel tells
the "Best Buy" story well.
This retailer is faced
with product lines that encompass most segments of the electronic
revolution. They are purchased by a diverse digital consumer navigating an
economy that has stressed those shoppers with limited disposable income and
narrowing purchase options. However, by reading that landscape well, Best
Buy are implementing solutions that are leading to their
differentiation. As the sole surviving national consumer electronics
chain, the "last man standing" designation certainly
applies to them but others, namely Walmart, Target, Amazon and Apple
all compete in "what they do" (sell consumer electronics
products) however, Best Buy has chosen a clearly identified
Service Strategy as their path to differentiation (" how they do what
they do".)
As their competitors' failed (Circuit City and Comp USA)
Best Buy understood what was happening and as those retailers
deemphasized service as a cost avoidance, Best Buy embraced it as as their
lifeline. They retrained their salespeople, formed the Geek Squad,
reshaped their stores, kept changing their product assortment and through it all
kept the focus on SERVICE. Perhaps their best
service positioning "Walk out Working" is
an adaptation from a joint venture with a European mobile phone
retailer. This service plan makes certain that customers leave their
stores with a fully operating device , ready for immediate use.
However, what's really happening at Best Buy is the result of
a classic transformation to a culture deep rooted in Service
Excellence as the road-map to competitive differentiation. It is about
understanding your own Purpose and Values, identifying your customer
needs, pro-actively planning to satisfy them and continually seeking improvement
by getting better at getting better. I continue to be convinced, that coming
through this recession companies that embrace Service
Excellence as a defining characteristic of who they are and make Service
their hallmark, will be best positioned for a strong recovery.