Rocketfish - Corporate Affairs - Business Operations

Business Operations

Best Buy sells consumer electronics and a variety of related merchandise, including software, video games, music, DVDs, Blu-ray discs, mobile phones, digital camera, car stereos and video cameras, in addition to home appliances (washing machines, dryers, and refrigerators), in a non-commissioned sales environment. Each store includes installation of car audio and video equipment, on-site installation services, as well as a Geek Squad "precinct" for computer repair and warranty service and accidental service plans. The building exteriors are typically light brown, with the entrance designed to look like a blue box emerging from the structure. Older locations have a more utilitarian brick building without the blue structure. Corporate employees are under a policy of Results Only Work Environment, and is increasingly being integrated at the store level. In April 2005, the company was the first major retailer to announce the elimination of all mail-in rebates.

During September 2008, in an effort to eliminate losses from the Product Replacement Plan, an expanded warranty for smaller electronics, Best Buy changed their product guarantee system to Geek Squad Gadgets and Gizmos. A notable change under the plan sees customers' gaming consoles sent to a refurbishing site if a hardware failure occurs after 30 days, instead of replacing it with a new one. The title "Gadgets and Gizmos" has since been eliminated, without change to the service procedures. Its Performance Service Plan, offered on many bigger ticket items, became Geek Squad Protection. It includes variable levels of coverage; the standard-level plan operates similarly to the previous system, while new premium-level plans has extra services including limited, free telephone troubleshooting; multi-year Geek Squad anti-virus and spyware protection; HDTV calibration; preventative maintenance checks on major appliances; accidental damage coverage; a 20% trade-in bonus; and prioritization of service claims. Additionally, customers who purchase Geek Squad Protection can claim points that, when accumulated on a Best Buy Reward Zone account, can be used toward future purchases from the store or online.

As of December 28, 2008 (2008-12-28), the company operated 1,010 Best Buy Stores, 13 Magnolia Audio Video Stores (specializing in high-end electronics), 7 stand-alone Geek Squad stores, 3 AudioVisions Stores, 13 Best Buy Mobile Stores (standalone) and 17 Pacific Sales stores (in Southern California, Arizona, and Nevada), all through its U.S. retail subsidiary. They also operate 51 Best Buy and 140 Future Shop stores throughout Canada. In 2003, the company opened its first international global procurement office in Shanghai, and also operates sourcing offices in Beijing and Shenzhen, primarily to reduce costs and increase the speed to market by purchasing products directly from manufacturers. As of January 2009, Best Buy operated five "branded" stores in Shanghai, one "premium" store in Beijing, as well as 151 Five Star Appliance Stores in China. The company operates numerous Best Buy Mobile stores within the U.S. as a joint venture with The Carphone Warehouse, using its successful UK business model. Best Buy Mobile locations offer customers a wider variety of cell phones than their other locations, some of which are "unlocked" phones that can be used on any GSM network. Best Buy Mobile also offers services comparable to those from carrier stores, including but not limited to a number transfer machine, warranty service on any phone, loaner phones, and the most popular carriers. Most current Best Buy Mobile stores are located in or near the Northeast region of the U.S., though the company is expanding such that most or all U.S. locations will include Best Buy Mobile services by the end of 2008.

With the acquisition of Seattle-based Speakeasy, Inc., Best Buy will be able to offer broadband and VoIP services to small businesses through their Best Buy for Business unit. Best Buy launched Best Buy Connect on July 2010 to offer its own brand of mobile broadband to commercial customers. On March 28, 2011, with the partnership of Clearwire, 4G broadband was added to Best Buy Connect's offerings. The domain bestbuy.com attracted at least 159 million visitors annually by 2008 according to a Compete.com survey. On February 15, 2009, the company started an electronics recycling program. In late August 2010, Best Buy launched Video Game Trade-Ins and was now buying used video games, just like GameStop. The Game Trade-Ins were located in over 600 Best Buy Stores in the U.S. On November 12, 2010, the first "Connected" Best Buy were to open in South Charleston, West Virginia. The "Connected" store was the first of many prototype stores that were being tested in select stores in the Pittsburgh, Pennsylvania; and Las Vegas, Nevada, markets. These stores presented more opportunities for networking and connections outside of normal electronics. Former Best Buy chief executive Brian Dunn described it as a "connected world strategy" to set Best Buy apart from other electronics retailers. Customer Centricity is the name of a former business movement centered on catering to specific customer needs and behaviors. One of the things the company did for some segments was to create a personal shopping assistant, so that a customer could call and make an appointment for their shopping trip.