In this article we conduct a competitive analysis of Best Buy and analyze the top Best Buy Competitors. Best Buy has the distinction of being the largest specialty retailer in the retail industry of consumer electronics in the United States. It occupies 72nd position in the Fortune 500 list of the year 2018 as one of the largest corporations in the United States in terms of total revenues. It has been declared The Most Sustainable Company in the United States in 2019 by Barron’s.
Best Buy is a public company of American origin that was founded in the year 1966 by its founder Richard M Schulze. It serves in Mexico, Canada, and the United States with headquarters based at Richfield, Minnesota in the United States and has spread its presence with nine hundred and ninety-seven outlets by February 2019. The company posted revenues and net income for the fiscal year 2019 at 42.88 billion US dollars and 1.46 billion US dollars respectively. It operates with the help of several subsidiaries Pacific Sales, Magnolia Home Theater, Geek Squad, and Best Buy Mobile along with the domain BestBuy.com.
Best Buy is associated with the retail industry and deals in products related to appliances and consumer electronics and offers a free consultation as part of its services. Its product portfolio includes musical instruments, audio, TV and home theatre, cameras, computers, appliances, video games, etc.
The retail industry is very vast with some key players dominating the field exclusively. Best Buy is no doubt one of the important players in the market but let’s have a look at other participates to understand how and who fits right in.
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Top Best Buy Competitors
1. Alibaba Group Holding Limited
Alibaba Group Holding Limited is a Chinese origin company that was founded in the year 1999 by its founder Jack Ma. It serves a worldwide area through headquarters based at Yuhang District, Hangzhou in China.
Alibaba Group Holding Limited is associated with several industries like technology, internet, retail, and e-commerce. It offers B2B, B2C, and C2C sales services through electronic payment services, web portal, cloud computing, and shopping search engines. It offers stiff competition to Best Buy in the offline and online retail business
Alibaba Group Holding Limited operates with the help of Alibaba, Taobao, and Tmall. By the end of June 2018, it had seven hundred and fifty-five million users and on 13th November it had sold 30.8 billion products on a single day creating a world record. With revenues and net income posted for the end of the fiscal year 2019 at 56.152 billion US dollars and 11.955 billion US dollars respectively the high-profile company is considered one of the strongest Best Buy competitors in the world.
Costco is an American origin public company that was founded in the year 1976 by its founders Jeffrey Brotman and James Sinegal. It serves with headquarters based at Issaquah, Washington in the United States and has spread its presence with seven hundred and eighty-five warehouses in thirteen countries.
Costco is associated with the retail industry and operates membership-only warehouses clubs. It is the largest retailer in the world of organic foods, prime beef, and wine. Its product portfolio includes home appliances, furniture, wine, computer software, apparel, caskets, books, art, jewelry, fresh baked goods, etc. In 2019, the Best Buy competitor was ranked at first position as the largest United States corporations in terms of total revenues by Fortune 500 rankings.
Costco serves the global retail industry through seven hundred and eighty-five warehouses in thirteen countries like United States, United Kingdom, Japan, Mexico, and Canada along with its domain costco.com. It competes with regional, national, and international retailers and wholesalers for the market space and has been able to show growth in these competitive times.
Amazon is an American origin public company that was founded in the year 1994 by its founder Jeff Bezos. It serves with headquarters based at Seattle, Washington in the United States and has spread its presence to seventy-three cities in thirty-three countries.
The company posted revenues and net income for the fiscal year 2019 at 280.522 billion US dollars and 11.588 billion US dollars respectively. It has a product portfolio that exceeds one hundred and nineteen billion items and boasts of one hundred million active users in its domain amazon.com.
Amazon is a technology-based company associated with numerous industries like e-commerce, Artificial Intelligence, Cloud Computing, Consumer Electronics, Grocery Stores, and Digital Distribution. Amazon is one of the Big Four tech companies and has been declared as one of the biggest brands, the most valuable company, the largest online marketplace, biggest cloud-computing platform, largest AI assistant provider, and the largest internet company by revenue in the world.
4. Target Corporation
Target is an American origin public company that was founded in the year 1902 by its founder John Geisse and George Dayton. It serves in the United States with headquarters based at Minneapolis, Minnesota, and one thousand eight hundred and sixty-eight outlets.
Target is associated with retail industry and deals in a diversified product portfolio that includes products related to categories like toys/games, footwear, pet supplies, food, small appliances, lawn and garden items, jewelry, furniture, health, electronics, accessories, apparel, beauty, and bedding, etc.
Target Corporation is the 8th largest retailer in the United States with revenues and net income for the fiscal year 2019 at 75.356 billion US dollars and 2.937 US dollars respectively. It operates a chain of retail outlets in the form of small-format, hypermarket, and discount stores along with an e-commerce initiative Target.com. The Best Buy competitor has launched schemes like Expect More Pay Less and Low Price Promise to increase its customer base and effectively deal with rival brands.
Walmart, Inc is an American origin public company that was founded in the year 1962 by its founder Sam Walton. It serves with headquarters based at Bentonville, Arkansas in the United States and has spread its presence with eleven thousand five hundred and three outlets and clubs in twenty-seven countries.
Walmart acquired several online platforms of diversified categories. Its huge product portfolio includes grocery, automotive goods, party supplies, craft supplies, pet supplies, hunting products, fitness items, health and beauty, jewelry, clothing, home and furniture, electronics and movies and music, etc. Services include Walmart-Walmart, Walmart Pay, Financial Services (bill payment, check to cash, prepaid cards, and money orders, etc.), Pickup Today and Walmart MoneyCard,
With revenues and net income posted for January 2020 at 523.964 billion dollars and 14.881 billion US dollars respectively Walmart is considered one of the prominent Best Buy competitors in the world. It operates a chain of retail outlets in the form of grocery stores, discount department stores, and hypermarkets along with domain Walmart.com. As per the Fortune Global 500 list of 2019, it is the largest company by revenue in the world and also the largest private employer with 2.2 million employees.
6. eBay Inc
eBay Inc is an American origin public company that was founded in the year 1995 by Pierre Omidyar. It serves with headquarters based in San Jose, California in the United States. It has operations in nearly thirty countries and facilitates B2C and C2C business through its online site.
With revenues and net income posted for the fiscal year 2018 at 10.746 billion US dollars and 2.530 billion US dollars respectively eBay Inc is considered a top Best Buy competitor in the retail segment.
eBay Inc is an online shopping site and auction website associated with the e-commerce sector. It is free to use for the buyers but the seller has to pay a fee for listing items. An important scheme to increase its consumer base includes “Buy it Now” which has been a huge hit amongst the consumers. Online money transfers via PayPal, a fully-owned subsidiary of eBay is also possible on this website.
eBay has expanded its services to include shopping by SKU number or through Universal Product Code ISBN, online event ticket trading through StubHub, and classified online advertisements through eBay Classifieds and Kijiji.
7. Staples Inc
One of the Best But competitors in the lifestyle and retail industry is a Fortune 500 company Staples Inc. It operates via retail channels and B2B delivery options and serves with the help of forty fulfillment centers and one thousand ninety-three outlets in the United States.
Staples Inc is an American origin private company that was founded in the year 1986 by its founders Myra Hart, Thomas G Stemberg and Leo Kahn. It has a presence in the United States and Canada with headquarters based in Framingham, Massachusetts in the United States. Since the year 2017 Staples Inc acts as a subsidiary of its parent company Sycamore Partners. It takes the help of its subsidiaries, for instance, Mondoffice, Staples Office Centre, Staples Argentina, and Quill Corporation during business operations.
Staples Inc is associated with the retail industry and its product portfolio includes office furniture, facility, and janitorial supplies, school supplies, printing services, snacks, electronics, beauty and health supplies, industry-specific supplies, office, and data center technology, office supplies and IT consulting
8. Kmart Corporation
Kmart is an American origin company that was founded in the year 1899 by its founder S S Kresge. With outlets in more than one hundred locations, the company serves in Guam, United States Virgin Islands, Puerto Rico, and the United States. It has headquarters based at Hoffman Estates, Illinois in the United States and acts as a subsidiary of its parent company Transform SR Brands LLC.
Kmart is associated with the retail industry and deals in several products like pet products, appliances, automotive, hardware, sporting goods, food, toys, health and beauty, accessories, electronics, jewelry, bedding, footwear, and clothing.
Kmart operates as a retail chain of big-box department stores along with the domain kmart.com. Low pricing policies have been one of the major reasons for the popularity of the Best Buy competitor in the retail market.
Kroger is an American origin public company that was founded in the year 1883 by its founder Bernard Kroger. It serves in the United States with headquarters based in Cincinnati, Ohio.
Kroger is associated with the retail industry and is the largest supermarket in the United States by revenue and fifth-largest retailer in the world. It is a fully-integrated retail chain dealing in manufacturing, sales, and promotions. The company posted its revenues and net income at 121.16 billion dollars and 3.11 billion US dollars respectively for the fiscal year 2019.
By 2nd February year 2020, Kroger was involved in direct and indirect operations via two thousand seven hundred and fifty-seven department stores, superstores, hypermarkets, and supermarkets along with two hundred and forty-two jewelry stores. It also operates through one thousand five hundred and sixty-seven supermarket fuel centers, thirty-five manufacturing facilities, two hundred and twenty-one medical clinics, and two thousand two hundred and seventy pharmacies.
JD.com. is a Chinese origin public company that was founded in the year 1998 by its founder Liu Qiangdong. It serves via headquarters based in Beijing, China, and deals in B2C transactions on a massive scale. It is one of the most worthy Best Buy competitors in the e-commerce sector.
JD.com is a member of Fortune Global 500 Company and has been able to create a distinct name for itself in the retail industry. The company posted revenues and net income at 82.865 US dollars and 1.708 US dollars respectively at the end of the fiscal year 2019. As per the Alexa ratings, it was ranked at 12th position on 1st April 2020.
JD.com has created a strong presence in both internet and online retailing sector. It has investments and dealings in AI and high-tech deliveries via drones, robots, and autonomous technology and possesses the largest capability, infrastructure, and drone-delivery system in the world. The Company has expanded its horizons and started testing for robotic delivery services, operating driverless delivery via a first-of-its-kind autonomous truck and building drone-delivery airports
There are numerous Best Buy competitors in the world with a product portfolio that is quite similar and sometimes more diversified. The common thread that has bound them together is their zeal to offer quality products at reasonable prices. This has helped in creating a customer base that is loyal to the brands and ultimately helps them to survive the cut-throat competition.