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Best Buy Co., Inc. (NYSE: BBY) is a company that is part of Fortune 500 companies specializing in selling electronic products in the United States, Canada, Mexico and China having 21% market share. [1] subsidiaries the company include Geek Squad, Magnolia Audio Video, Pacific Sales, and in Canada the Best Buy Canada subsidiary operates most of the branches under the name of Future Shop. In total, it operates about 1,150 stores in the United States, Puerto Rico, Canada, China, Mexico and Turkey. [2] The company headquarters are located in Richfield, Minnesota, USA. In the June 26, 2007, Best Buy announced a 40% increase in its operations, with plans to operate in more than 1,800 branches throughout the world including the 1400 U.S. Best Buy.

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Best Buy was named by Forbes magazine in 2004 as the 'Company of the Year

1966 - Richard M. Schulze and his business partner James Wheeler opened Sound of Music, a business specializing in audio, in Saint Paul, Minnesota [4] [5]
* 1967 - Sound of Music acquires Kencraft Hi-Fi Company and Bergo Company. The second and third branch of Sound of Music was opened near the University of Minnesota. Sound of Music ends its first year of sales with a profit of $ 173,000 (USD).
* 1979 - Sound of Music was the first to offer video and laserdisc equipment of including Panasonic, Magnavox, Sony and Sharp Corporation
1981 - A tornado reaches the branch of Roseville, Minnesota on June 14. Sound of Music responds with a "Tornado Sale" and becomes an annual event.
* 1983 - The Sound of Music directors approved a new corporate name: Best Buy Co., Inc., [4] and opened its first 'superstore' in Burnsville, Minnesota, featured an expanded retail space.
* 1997 - Best Buy is the first U.S. retail offer DVD software and hardware.
* 2000 - Best Buy enters Internet sales with the launch of your site, the cassettes are removed from almost all branches.

Branch of Future Shop in Halifax

* 2001 - Best Buy acquires Canadian company Future Shop Ltd. [4], which marks the company's entry into the international market, [5]
* 2002 - Brad Anderson succeeds Schulze as CEO, Best Buy acquired Geek Squad, and the first Best Buy Canada opened in Mississauga, Ontario east of Toronto

Best Buy branch in Shanghai, China.

* 2007 - June 26, opens the first Best Buy in China. Best Buy is the first retailer to exit the analog television business, offering only digital products [6].
* 2008 - Best Buy announced the launch of the first branches in Puerto Rico, Mexico and Turkey, as well as another branch in Shanghai. Best Buy decided to promote the Blu-ray over HD DVD. [7] Best Buy also announced it will open superstores in the United Kingdom and other European countries. Also announced it will begin selling musical instruments and related products in about 70 of its branches, causing the company is the second largest retailer of musical instruments in the United States [8].
* 2009 - Best Buy acquires 50 percent of The Phone House

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Exclusive Brands

Best Buy owns some brands the same company offers. Currently five private firms posse includes Insignia, Dynex, Init, Geek Squad, and Rocketfish. Insignia it focuses on electronic equipment, including televisions, monitors, home, stereos, home theater systems and portable audio players and video.

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Despite the recession, Best Buy steadfast in its plan of progress here, another 5 stores in 2009 and 50 million dollars investment

And the novelty is that the U.S. Best Buy will not stop its expansion project in the country, beyond the impact on consumption is recorded as a result of the recession.

By contrast, the chain of food stores and electronic services Eduardo Garcia Fabregat presides here, is preparing to open 5 more stores by the end of the year when most companies have opted for caution.

In the new units will invest $ 50 million and its workforce are also widened to a thousand workers, another great news as unemployment.

It happens that the horizon of business in Mexico is more favorable compared to other countries where Best Buy already operates outside the U.S., including Canada, Europe, China and Puerto Rico.

Moreover, a store designed will become the third largest in the world, only surpassed by another in Shanghai, and Mundo E, which in December 2008, Best Buy made its debut in 5000 800 meters surface.

This one with 5 000 750 meters, will be located in Polanco, a property of Gabriel Alarcón where he settled for some time, without curdling, Dave & Buster.

The start of the new Best Buy stores will be in the second half of the year. The first in the Galeries de Guadalajara in August, followed by a second in Acoxpa in Mexico City's Polanco, one in Interlomas and the last in the Citadel mall, like the Perla Tapatia.

It is noteworthy that the behavior in the only store in the World E was better than expected in the three weeks of December with 107,000 customers, and even in January and February with more than 166,000. The budget was exceeded by 4.35 percent and the average percentage of closed sales was 18 percent.

Best Buy has probed other AL markets like Brazil, Colombia, Chile and Russia welcomed, but in general Europe including Turkey, there is very recession-proof.

In the U.S. Best Buy Bradbury headed Andersen and who leaves the post office in May to Brian Dunn, after 39 years at the company, shall be a beneficiary of the bankruptcy of Circuit City, one of his rivals in that its main market.

That Best Buy has 19 percent share versus 11 percent who had Circuit City. Clear today that sales have plummeted about 25 percent. There are also competing in several segments against Wal-Mart, RadioShack, Office Depot, Office Max and Sears.

6 Best Buy with a thousand stores, operates 9 brands, has revenues of more than 40 billion dollars and 155 thousand workers.

A Mexico probed with a partner and get to talked to Giant Angel Losada. At the end chose to walk alone with the support of Garcia Fabregat, an expert who worked 15 years for Liverpool, 8 years at Sears and Elektra. Is supported by Reinaldo Wences, former Philips, a former Nextel and extensive knowledge of markets such as Europe and Asia.

The concept of Best Buy tropicalized here and is such a big seller of appliances, in addition to computer equipment, accessories, entertainment equipment, cell phones, cameras and musical instruments.

A differentiator from competition is the training of its employees and the support offered even after the sale. Your salespeople do not receive commissions and there are no promoters of firms, not to influence the customer. Today, his shop offers over 20 thousand products and over 200 permanent promotions.

Best Buy was founded in Minnesota by Richard Schulze in 1966 as Sound of Music. Changed its brand to Best Buy in 1983 and listed on the NYSE. It ranks 66 among the Fortune 500.


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A clear lesson I have learned U.S. retailers this holiday season is that consumer electronics is a relentless business.

This month the chain Wiz Inc., which owns 50 stores Nobody Beats the Wiz in the northeastern United States, filed for bankruptcy protection laws, joining a long list of victims.

So why Best Buy Co. is doing so well? This month the big retailer of consumer electronics reported revenues of $ 26.4 million in the third quarter after a loss of U.S. sign $ 10.9 million in the same period in 1996. Its turnover for the quarter ended Nov. 29 was U.S. $ 2,100 million, an increase of 5%, surpassing even the income from their biggest rival, Circuit City Stores Inc.

Harsh reality one year ago, Best Buy faced the harsh reality of the business when he took a pre-tax accounting charge of $ 15 million due to its stocks of obsolete personal computers. The experience was disconcerting for a successful company whose 285 stores specialize in selling televisions, video cameras and PC.

The retailer, based in Eden Prairie, Minnesota, I knew I had to change his strategy to avoid being one of the many competitors who have left the business. In the last decade, the list of victims includes Highland Superstores, Crazy Eddie McDuff s megastores and Incredible Universe, Tandy Corp.

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One reason for the failure of many of these businesses is that when the economy stagnates, the first thing consumers are postponing purchases of electronic products. And although the retailer of these products has enjoyed booming years, thanks to the launch of color television sets, CD players and VCRs, such booms decreased rapidly after the products have lost their novelty and the market was saturated.

Today, many of these items are so familiar that consumers do not need the help of the seller, simply seeking the lowest price. That has helped the big discount chains like Best Buy and Circuit City to crush the smaller shops and has also led to competition from retailers like Wal-Mart and Target.

Meanwhile, the business has become a more risky because of its PC sales. Compared with other previous electronic innovations, PCs are more expensive, attracts a select market and become obsolete more quickly. The PC is perishable, said Ursula Moran, an analyst at Sanford C. Bernstein & Co. really rot with time.

One of the biggest mistakes made Best Buy was trying to sell PCs and other electronic products, with a large inventory that changed four or five times a year. Unlike other products that change once a year, they change every three months, said Richard Schulze, president of Best Buy.

After misjudging the demand for PCs in late 1996, the company was forced to record a loss of $ 15 million for obsolete inventory, its first quarterly loss since it went public in 1995.

To remedy the situation, the first thing Best Buy did was to stop its expansion rate to about 15 or 20 new stores a year, out of 50 that opened annually. To obtain more profits from existing stores, the company established more stringent controls on inventory, especially in PC sales.

To change the PC stocks about 11 times a year instead of four, the company began tracking weekly sales to determine which models to order. To reduce your risk for falling prices of the same, cut the inventory at hand and reduced the number of models from 35 to 24.

The result? The company now buys more products from fewer suppliers, which gives it a smoother flow of articles and fewer price cuts and returned merchandise.

Best Buy told Wall Street earlier this month that exceed analysts' expectations for the fourth quarter. Analysts then raised their profit forecasts for the company of $ 0.31 per share to $ 0.55. And last week, the company managed to exceed the consensus, when their titles were quoted at U.S. $ 0.57 each.

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