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Case Study: Leadership at Best Buy
Type
case study
Date Issued
2021-09-13
Abstract
Best Buy was founded in 1966 as an audio specialty store named “Sound of Music” by Richard Schulze and James Wheeler. After a rebranding in 1983, Best Buy found its core business model in selling consumer electronics and related products. Its cur-rent subsidiaries include Best Buy Mobile (cell-phone carrier), the Geek Squad (con-sumer electronics services), Magnolia Home Theater (home theater solution brand) and Pacific Sales (home electronics & white goods retailer). In 2021 the company counted over 102’000 employees worldwide and had a sales revenue of USD 47.3B – making it one of the few companies able to compete in the same market as Amazon. This teaching case looks at the leadership styles of the company's past and current CEOs and their impact on its current position in the market.
Language
English
HSG Classification
contribution to education
HSG Profile Area
Global Center for Customer Insight
Publisher
Institut für Marketing und Customer Insight
Publisher place
Universität St. Gallen
Subject(s)
Division(s)
Contact Email Address
mauro.gotsch@unisg.ch
References
Baxter, A. (2012, May 15). Best Buy’s Richard Schulze: Stereo seller to retail giant | MPR News. Retrieved July 21, 2021, from MPR News website: https://www.mprnews.org/story/2012/05/15/best-buy-richard-schulze-legacy
Berenstein, A. (2012, January 20). Best Buy Christmas Debacle alienates Customers. Retrieved July 22, 2021, from Satisfaction Secrets website: https://www.satisfactionsecrets.com/customer-satisfaction/best-buy-christmas-debacle-alienates-customers/
Best Buy. (2017, March 1). Best Buy Reports Better-than-Expected Fourth Quarter Results. Retrieved July 22, 2021, from Best Buy Corporate News and Information website: https://corporate.bestbuy.com/best-buy-reports-better-than-expected-fourth-quarter-results/
Best Buy. (2021). Teen Tech Centers - Best Buy. Retrieved July 22, 2021, from Best Buy Wesbiste website: https://www.bestbuy.com/site/misc/teen-tech-center/pcmcat1530212400327.c?id=pcmcat1530212400327
Carlyle, E. (2012). Best Buy CEO Brian Dunn Gets $6.6 Million Severance Package After “Friendship” With 29-Year-Old Employee. Forbes. Retrieved from https://www.forbes.com/sites/erincarlyle/2012/05/14/best-buy-ceo-brian-dunn-gets-6-6-million-severance-package-after-friendship-with-29-year-old-employee/
Chakravarthy, B., & Lorange, P. (2007). Continuous renewal, and how Best Buy did it. Strategy & Leadership, 35(6), 4–11. https://doi.org/10.1108/10878570710833705
Coggins, B. (2020, April 3). Transformation, purpose, and resilience: Best Buy’s transformation. Retrieved July 22, 2021, from McKinsey & Company website: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/transformation-and-resilience-an-interview-with-best-buys-executive-chairman-hubert-joly
Downes, L. (2012, January 2). Why Best Buy is Going out of Business...Gradually. Forbes. Retrieved from https://www.forbes.com/sites/larrydownes/2012/01/02/why-best-buy-is-going-out-of-business-gradually/
Dunn, B. J. (2010). How I Did It: Best Buy’s CEO on Learning to Love Social Media. Harvard Business Review, 88(12), 43. Retrieved from https://hbr.org/2010/12/how-i-did-it-best-buys-ceo-on-learning-to-love-social-media
Forbes. (2021, July 21). Best Buy (BBY) Market Data. Retrieved July 21, 2021, from Forbes website: https://www.forbes.com/companies/best-buy/
Groth, A., & Bhasin, K. (2012). Brian Dunn’s Biggest Mistakes. Business Insider. Retrieved from https://www.businessinsider.com/brian-dunns-biggest-mistake-2012-4?r=US&IR=T
Harvard Business School. (2021). Hubert Joly - Faculty & Research - Harvard Business School. Retrieved July 22, 2021, from Harvard Business School Website website: https://www.hbs.edu/faculty/Pages/profile.aspx?facId=520131
Herhausen, D., Binder, J., Schoegel, M., & Herrmann, A. (2015). Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration. Journal of Retailing, 91(2), 309–325. https://doi.org/10.1016/J.JRETAI.2014.12.009
Johnston, L. D. (2012, April 12). Like retailers of past, Best Buy will have to adapt to survive. MinnPost. Retrieved from https://www.minnpost.com/macro-micro-minnesota/2012/04/retailers-past-best-buy-will-have-
Joly, H. (2021). Want to Take on Amazon? Here’s How Best Buy Did It. Retrieved July 22, 2021, from Inc. website: https://www.inc.com/hubert-joly/want-to-take-on-amazon-heres-how-best-buy-did-it.html
Kelly, J. (2020, January 21). Best Buy CEO Corie Barry Is A Corporate Icon—She’s Now Accused Of Having An Inappropriate Affair With A Co-Worker. Retrieved July 22, 2021, from Forbes website: https://www.forbes.com/sites/jackkelly/2020/01/21/best-buy-ceo-corie-barry-is-a-corporate-iconshes-now-accused-of-having-an-inappropriate-affair-with-a-co-worker/
Kieling, J. (2005). Brad Anderson 1949— Biography - Poor student who finds strengths, Starts in sales. Retrieved July 21, 2021, from Reference for Business website: https://www.referenceforbusiness.com/biography/A-E/Anderson-Brad-1949.html
Kwok, I., Dornbach-Bender, R., & Lange, R. (2009). Strategic Report for BEST BUY CO., INC.
Lubbers, P. (2021, June 24). Best Buy to spend $1.2 billion with diverse businesses by 2025 | Fortune. Retrieved July 22, 2021, from Fortune website: https://fortune.com/2021/06/24/best-buy-commits-to-spending-1-2-billion-minority-owned-businesses-by-2025/
Meyersohn, N. (2021, February 25). Best Buy just laid off 5,000 workers and will close more stores - CNN. Retrieved July 22, 2021, from CNN Business website: https://edition.cnn.com/2021/02/25/business/best-buy-store-closures-workers/index.html
Miller, T. (2016, June 14). 35 Years Ago Today, A Tornado Transformed Best Buy - Best Buy Corporate News and Information. Retrieved July 21, 2021, from Best Buy website: https://corporate.bestbuy.com/35-years-ago-today-a-tornado-transformed-best-buy/
Reagan, C. (2019, September 25). Best Buy CEO Corie Barry wants to “double down” on strategy, despite tariffs. CNBC. Retrieved from https://www.cnbc.com/2019/09/25/best-buy-ceo-corie-barry-wants-to-double-down-on-its-strategy-despite-tariffs.html
Reiss, R. (2021, April 20). Former Best Buy CEO Hubert Joly Shares The Secret To Company Turnarounds. Forbes. Retrieved from https://www.forbes.com/sites/robertreiss/2021/04/20/former-best-buy-ceo-hubert-joly-shares-the-secret-to-company-turnarounds/
Riecken, G. (2014). Best Buy: Reconquering the electronics market? Journal of Business Cases and Applications, 1–6. Retrieved from http://www.ww.aabri.com/manuscripts/131663.pdf
Tomczak, T., Reinecke, S., & Kuss, A. (2018). Strategic Marketing - Market-oriented corporate and business unit planning. Wiesbaden: Springer Gabler.
Trefis Team. (2020, September 14). Can Best Buy Survive The Amazon Threat? Retrieved July 21, 2021, from Forbes website: https://www.forbes.com/sites/greatspeculations/2020/09/14/can-best-buy-survive-the-amazon-threat/
Wells, J. R., & Ellsworth, G. (2018). Reinventing Best Buy. Harvard Business School Publishing, 9-716–455, 38.
Berenstein, A. (2012, January 20). Best Buy Christmas Debacle alienates Customers. Retrieved July 22, 2021, from Satisfaction Secrets website: https://www.satisfactionsecrets.com/customer-satisfaction/best-buy-christmas-debacle-alienates-customers/
Best Buy. (2017, March 1). Best Buy Reports Better-than-Expected Fourth Quarter Results. Retrieved July 22, 2021, from Best Buy Corporate News and Information website: https://corporate.bestbuy.com/best-buy-reports-better-than-expected-fourth-quarter-results/
Best Buy. (2021). Teen Tech Centers - Best Buy. Retrieved July 22, 2021, from Best Buy Wesbiste website: https://www.bestbuy.com/site/misc/teen-tech-center/pcmcat1530212400327.c?id=pcmcat1530212400327
Carlyle, E. (2012). Best Buy CEO Brian Dunn Gets $6.6 Million Severance Package After “Friendship” With 29-Year-Old Employee. Forbes. Retrieved from https://www.forbes.com/sites/erincarlyle/2012/05/14/best-buy-ceo-brian-dunn-gets-6-6-million-severance-package-after-friendship-with-29-year-old-employee/
Chakravarthy, B., & Lorange, P. (2007). Continuous renewal, and how Best Buy did it. Strategy & Leadership, 35(6), 4–11. https://doi.org/10.1108/10878570710833705
Coggins, B. (2020, April 3). Transformation, purpose, and resilience: Best Buy’s transformation. Retrieved July 22, 2021, from McKinsey & Company website: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/transformation-and-resilience-an-interview-with-best-buys-executive-chairman-hubert-joly
Downes, L. (2012, January 2). Why Best Buy is Going out of Business...Gradually. Forbes. Retrieved from https://www.forbes.com/sites/larrydownes/2012/01/02/why-best-buy-is-going-out-of-business-gradually/
Dunn, B. J. (2010). How I Did It: Best Buy’s CEO on Learning to Love Social Media. Harvard Business Review, 88(12), 43. Retrieved from https://hbr.org/2010/12/how-i-did-it-best-buys-ceo-on-learning-to-love-social-media
Forbes. (2021, July 21). Best Buy (BBY) Market Data. Retrieved July 21, 2021, from Forbes website: https://www.forbes.com/companies/best-buy/
Groth, A., & Bhasin, K. (2012). Brian Dunn’s Biggest Mistakes. Business Insider. Retrieved from https://www.businessinsider.com/brian-dunns-biggest-mistake-2012-4?r=US&IR=T
Harvard Business School. (2021). Hubert Joly - Faculty & Research - Harvard Business School. Retrieved July 22, 2021, from Harvard Business School Website website: https://www.hbs.edu/faculty/Pages/profile.aspx?facId=520131
Herhausen, D., Binder, J., Schoegel, M., & Herrmann, A. (2015). Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration. Journal of Retailing, 91(2), 309–325. https://doi.org/10.1016/J.JRETAI.2014.12.009
Johnston, L. D. (2012, April 12). Like retailers of past, Best Buy will have to adapt to survive. MinnPost. Retrieved from https://www.minnpost.com/macro-micro-minnesota/2012/04/retailers-past-best-buy-will-have-
Joly, H. (2021). Want to Take on Amazon? Here’s How Best Buy Did It. Retrieved July 22, 2021, from Inc. website: https://www.inc.com/hubert-joly/want-to-take-on-amazon-heres-how-best-buy-did-it.html
Kelly, J. (2020, January 21). Best Buy CEO Corie Barry Is A Corporate Icon—She’s Now Accused Of Having An Inappropriate Affair With A Co-Worker. Retrieved July 22, 2021, from Forbes website: https://www.forbes.com/sites/jackkelly/2020/01/21/best-buy-ceo-corie-barry-is-a-corporate-iconshes-now-accused-of-having-an-inappropriate-affair-with-a-co-worker/
Kieling, J. (2005). Brad Anderson 1949— Biography - Poor student who finds strengths, Starts in sales. Retrieved July 21, 2021, from Reference for Business website: https://www.referenceforbusiness.com/biography/A-E/Anderson-Brad-1949.html
Kwok, I., Dornbach-Bender, R., & Lange, R. (2009). Strategic Report for BEST BUY CO., INC.
Lubbers, P. (2021, June 24). Best Buy to spend $1.2 billion with diverse businesses by 2025 | Fortune. Retrieved July 22, 2021, from Fortune website: https://fortune.com/2021/06/24/best-buy-commits-to-spending-1-2-billion-minority-owned-businesses-by-2025/
Meyersohn, N. (2021, February 25). Best Buy just laid off 5,000 workers and will close more stores - CNN. Retrieved July 22, 2021, from CNN Business website: https://edition.cnn.com/2021/02/25/business/best-buy-store-closures-workers/index.html
Miller, T. (2016, June 14). 35 Years Ago Today, A Tornado Transformed Best Buy - Best Buy Corporate News and Information. Retrieved July 21, 2021, from Best Buy website: https://corporate.bestbuy.com/35-years-ago-today-a-tornado-transformed-best-buy/
Reagan, C. (2019, September 25). Best Buy CEO Corie Barry wants to “double down” on strategy, despite tariffs. CNBC. Retrieved from https://www.cnbc.com/2019/09/25/best-buy-ceo-corie-barry-wants-to-double-down-on-its-strategy-despite-tariffs.html
Reiss, R. (2021, April 20). Former Best Buy CEO Hubert Joly Shares The Secret To Company Turnarounds. Forbes. Retrieved from https://www.forbes.com/sites/robertreiss/2021/04/20/former-best-buy-ceo-hubert-joly-shares-the-secret-to-company-turnarounds/
Riecken, G. (2014). Best Buy: Reconquering the electronics market? Journal of Business Cases and Applications, 1–6. Retrieved from http://www.ww.aabri.com/manuscripts/131663.pdf
Tomczak, T., Reinecke, S., & Kuss, A. (2018). Strategic Marketing - Market-oriented corporate and business unit planning. Wiesbaden: Springer Gabler.
Trefis Team. (2020, September 14). Can Best Buy Survive The Amazon Threat? Retrieved July 21, 2021, from Forbes website: https://www.forbes.com/sites/greatspeculations/2020/09/14/can-best-buy-survive-the-amazon-threat/
Wells, J. R., & Ellsworth, G. (2018). Reinventing Best Buy. Harvard Business School Publishing, 9-716–455, 38.
Additional Information
This teaching case was used in the introductory course "Introduction to Marketing Management" in the Master of Marketing Management 2021
Eprints ID
264329
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