1. Best Buy is currently underperforming due to several circumstances. It is at a disadvantage compared to some large companies such as Wal-Mart and Amazon in terms of supply chain and distribution, which impacts the customer in terms of price. Additionally, Best Buy has experienced a shift in strategic direction that focuses more on smaller, specific stores, and less on the larger, more expansive operations they are currently known for. While this may bode well for the future, this process has had financial consequences. As shown in Exhibit F, Best Buy has 1,055 primary locations consisting of standard large-format stores and 406 mobile-focused Best Buy Mobile locations. sales. To supply these locations, Best Buy has 23 distribution centers located across the country. In comparison, Wal-Mart has 4,625 stores supplied by 158 strategically located distribution centers. This gives Wal-Mart a huge advantage in several ways. Not only is Wal-Mart much more likely to have a store near a given customer, but it is also better equipped to keep its products in stock at all times. This means more customers visit and, with stock, more customers can make the purchase they want. Internationally, Wal-Mart also surpasses Best Buy's few hundred stores with 6,308 stores in more than 11 countries. This strengthens Wal-Mart's availability to customers and gives them an advantage over Best Buy. Additionally, the growing scale of Wal-Mart's retail and distribution operations makes them extremely competitive on price, a major aspect of purchasing decisions for big-ticket items like consumer electronics. Amazon is also competitive on price because it does not have physical stores. at o...... middle of paper ...... the company has had to recall a number of products that failed or injured customers in recent years. Another potential source of competitive advantage is Best Buy's Geek Squad. While this is a thriving business for Best Buy, it could also become obsolete. Already an expensive part of Best Buy, Geek Squad's costs would most likely increase if they wanted it to be more widely used. The probability of Best Buy overcoming this problem is arguably even lower than its probability of competing with Amazon's fast inventory - between 30 and 40 percent. With the evolution of technology and the trend toward more user-friendly interfaces and products, consumers may not need the help of Geek Squad representatives to help them with their product, as they can solve any problem on their own or by searching online for troubleshooting or product help. blogs, customer reviews, etc...