Best Buy - Definition and Overview

Best Buy Co., Inc. (NYSE: BBY (http://www.nyse.com/about/listed/lcddata.html?ticker=BBY)) is the largest specialty retailer of consumer electronics, personal computers and related goods in North America. The company's subsidiaries include Geek Squad, Magnolia Audio Video, and Future Shop in Canada, which together operate over 700 stores in the United States and Canada.

Slogans

• "Turn on the Fun"
• "Thousands of Possibilities, get yours, Best Buy."

History

In 1966, Richard M. Schulze opened Sound of Music, an audio specialty store, in St. Paul, Minnesota. The company grew over the following years, expanding to nine locations by 1980. In 1981, Schulze's most successful store was destroyed by a tornado. This event resulted in a highly successful sale that combined a large selection with low prices and heavy advertising. Similar "Tornado Sales" became an annual Sound of Music event.

In 1983, the company's name was changed to Best Buy Co., and the store shifted its focus to consumer electronics. Over the following decades, the company continued to evolve and grow.

In 2002, Brad Anderson succeeded Schulze as Best Buy's CEO.

In 2004, Best Buy brought their 24/7 computer support division known as, the Geek Squad, nationwide. The Geek Squad, founded by Robert Stevens in 1994, offers round the clock technical support on most any computer problem at flat rate prices. Their clients include celebrities such as, Larry King, The Rolling Stones, Ice Cube, and Cindy Margolis.

Diversity

Best Buy received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report.

Criticisms

Best Buy has been accused of bait and switch tactics, advertising a product and then refusing to sell it. They have also been accused of being outrageously pushy in the promotion of extended warranties, (Performance Service Plans) or (PSP's), often lying or misrepresenting the terms. A consumer advocacy website targeting Best Buy, BestBuySux.org, has received thousands of letters from disgruntled employees and customers, and ranks among the most popular consumer advocacy websites on the Internet.

In late November 2004, Dell ran an advertisement claiming Best Buy wishes to 'fire' 20% of its customer base. The advertisement was based on an article in Wall Street Journal with the company's CEO, Brad Anderson.

External links

• Official Best Buy website (http://www.bestbuy.com)
• Best Buy Sucks (http://www.bestbuysux.org) - Best Buy consumer advocacy site with comments by employees and customers who feel they've been victimized.