In the retail industry, it is crucial for businesses to pay attention to the changing needs and demands of consumers before they can seriously impact company earnings. Individuals who plan to enroll in traditional or online MBA programs may be interested to learn how Best Buy Company plans to respond to its fourth quarter results.
Best Buy's fourth quarter net income dropped from $779 million a year ago to $651 million.
Though Best Buy is the largest electronics chain in the U.S., the company is facing competition from stores such as Wal-Mart and online retailers, who offer products at discounted rates, The Associated Press reported.
Online retailing made searching for electronics more convenient for consumers, who no longer need to visit big-box stores to learn which products are available, according to the news source. This, coupled with a decline in interest for high-price items, including flat-screen televisions and notebook computers has led Best Buy to rethink its business strategy.
The news outlet stated that the company plans to revise its business approach by opening smaller stores and catering to consumer interest in smart phones and tablet computers.