The neutrality of this article is disputed. Please see discussion on the talk page. } } } } } } } } Best Buy Co., Inc. Type Public (NYSE: BBY) Founded 1966 Location Richfield, Minnesota call=Infobox_Company/key_people 1=1=Brad Anderson, CEO & Vice Chairman Richard M. Schulze, Founder & Chairman }} call=Infobox_Company/industry 1=1=Retail }} call=Infobox_Company/products 1=1=Retail-Electronics }} call=Infobox_Company/revenue 1=1=US$29 billion }} call=Infobox_Company/operating_income 1=1= }} call=Infobox_Company/net_income 1=1= }} call=Infobox_Company/num_employees 1=1=110,000 }} call=Infobox_Company/homepage 1=1=http://www.bestbuy.com }} Best Buy is sometimes called the "big blue box" because of the prominent design on Best Buy stores resembling a blue box. Best Buy Co., Inc. NYSE: BBY is a Fortune 100 company and 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. It is headquartered in Richfield, Minnesota. Contents 1 Retail offerings 2 History 3 Performance Service Plans/Product Replacement Plans 4 Accolades 5 Diversity 6 Criticisms 6.1 Sale Advertising 6.2 Lawsuits 6.3 Media appearances 7 Incidents 8 Company Core Values 9 Mission Statement 10 Past slogans 11 External links Retail offerings While Best Buy is primarily associated with electronics (largely audio-visual equipment), there are a variety of goods offered at the stores. A large amount of space is taken up by the "Media" department, which contains the store's selection of video games, music on compact disc (as well as some other formats such as SACD, DualDisc, and DVD-Audio), as well as their selection of movies and television programs on DVD. Following suit with most retailers, Best Buy stopped offering VHS in their stores in 2003, only offering the tapes via their website. In 2005, they stopped carrying VHS tapes entirely. Home appliances such as washing machines, dryers, and refrigerators are usually featured off to one side of the building, and a selection of office equipment (mostly desks and chairs) is usually nearby. Computer-related peripherals and software take up large sections, and a small section of cellular phones and PDAs is often present, as is an area devoted to still and video cameras. A fairly large area is taken over by televisions and related equipment. A selection of audio equipment for automobiles is often tucked into a corner, and the stores usually offer on-site installation services for car audio systems by way of a rear or side garage. The building exterior is usually light brown in color with the entrance in an area designed to look like a blue box emerging from the rest of the structure. Best Buy is also noted for being staffed with non-commissioned sales associates. History Best Buy's corporate campus moved to Richfield, Minneosta in 2002. Over 5000 of Best Buy's employees work at the corporate campus. 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. This was the predecessor to today's typical Best Buy store, lots of product, recognizable staff in polo shirts, and lots of marketing. 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. The company also acquired the Geek Squad®, a 24-hour computer support taskforce which borrows imagery from the FBI for its employees, which they refer to as "Agents." Their uniforms are crisp, white dress shirts, black pants, dress shoes and a black tie, and most Agents also wear a badge on their belt. The secret-agent imagery even extends into the store, where their area is referred to as the "Precinct." The Geek Squad, founded by Robert Stephens in 1994, offers around the clock technical support on any computer problem at flat rate prices. Their clients include celebrities such as Larry King, The Rolling Stones, Ice Cube, and Cindy Margolis. In 2004, Geek Squad put precincts in every Best Buy store, nationwide. In 2003, Best Buy began to segment their stores, which is considered a major part of the company's "customer centricity" transformation. Customer Centricity is the theory that, by placing the needs of the customer before the company (rather than attempting to maximize the profit of each sale), the company will in turn increase its growth by building "customer loyalty." As part of the change, Best Buy no longer refers to their employees as "Product Specialists," but as "Customer Specialists." While many are well educated about the product they sell, employees are trained to give "excellent" customer service by asking "lifestyle questions" to determine the most suitable product, services, and accessories for the customer. Segments are conceived primarily by the lead corporate office, and represent Best Buy's most profitable demographics. The current segments are given codenames for the groups they represent — Jill, Ray, Buzz and Barry. There is also a Best Buy for Business segment that caters to small business owners. The named segments suggest that certain profiles populate certain areas and thus, shop at certain stores. For example, stores in larger shopping centers are usually "Jill" stores — a customer segment that represents the average soccer mom and differs from other Best Buy stores by stocking products and offering services for her and her family. Typically, this includes a greater emphasis on home and kitchen appliances, Hello Kitty and Disney products for the kids, and even the addition of personal shopping assistants. Customers that fall into the customer segment "Buzz," however, are young men on the cusp of technology. Buzz wants all of the newest stuff. When a new video game system is released, he purchases it. Best Buy plans to add more customer segments as their customer centricity plan grows. Segment stores usually start out as "lab stores" to test the area's acceptance to the theme and segment products and services. While the renovation of stores is expensive, sometimes nearing $1 million per store, CEO Bradbury Anderson claims that stores that have already been transformed have doubled their growth rate versus stores that have yet to be transformed. As of September 2005, only about 120 Best Buy stores have been segmented. The company set a goal of Q4 2007 for complete company-wide transformation. Best Buy plans to move globally, as the electronics market in North America is already becoming saturated. China is the most likely location Best Buy will open stores in. While the North American market is dominated by specialty but genre specific retailers (electronics store, clothing store), Best Buy would enter a market dominated by retailers who are also brands (Samsung store, Sony store). Best Buy Asia Offices Best Buy is itself trying to become a customer orientated retailer, not a product orientated retailer. This is seen as a better way to serve customers while improving the bottom line by company executives. It is not yet known if Best Buy plans to enter the electronics manufacturing business, but Best Buy is steadily adding more of its private label brands (such as Dynex, Insignia, and Init) alongside its more mainstream offerings (Sony, HP, Samsung, etc). Best Buy avoids using the "Best Buy" name on these products to avoid the typical negative connotations of buying a store brand, and uses more than one brand name to give a bigger sense of selection. Controlling the brands ties into Best Buy's overall customer centricity strategy, as controlling brands gives Best Buy better control to create products that fit the needs of its customers. Best Buy is not related to Best Products, a defunct U.S. retailer of electronics and home furnishings. Performance Service Plans/Product Replacement Plans Like most electronic retailers, Best Buy offers a service plan on many classes of products they sell. Best Buy's service plans are backed and insured by AIG International (American International Group, Inc.). Their in-home service plans for electronics and desktop PCs are administered by N.E.W. (National Extended Warranty). Best Buy offers 1-3 year Performance Service Plans (from here on refered to as PSP) on computer products, and up to 5 years on audio & video electronics and appliances. The PSP is designed to act as a plan to cover repair service for a product that fails due to wear and tear, dust, heat damage, surge, defectiveness etc. By default it does not cover intentional or accidental physical damage of any kind, or theft. Best Buy does offer an accidental damage service plan on notebook computers, as well as a "Platinum PSP" for notebook computers that provides a 72 hour repair turnaround time as well as data backup before being shipped out at a local store by the Geek Squad. These two options are an upgrade from the regular PSP and have an additional cost. The Product Replacement Plan is for lower priced products where repair is not possible or uneconomical. Items such as CD players, XBOX and Playstation and other game consoles have a Product Replacement Plan (here on referred to as PRP) available for them. A PSP covered product, in general is brought to the store where they will either ship the product to a service center for repair; or for products such as large-screen Television sets and appliances; a technician will be dispatched to the customer's location. Best Buy's PSP has a "No Lemon" policy that guarantees that after 3 completed, documented and valid repairs to a product, if it still failures a fourth time afterwards, will be replaced or a voucher issued for it's value. The PRP is a replacement only plan that is handled either by calling an 800 number to receive a voucher for the price of the product and a box with a pre-paid label to send the product back to Best Buy. PRP covered products can at times, also be replaced at the store, per the store's discretion. Best Buy specifically trains its employees not to misrepresent the terms of the plan (or of any maufacturer's warranties), and customers also have the official brochure containing all information related to the plan to rely on. Customers can also return service plans at any time. Within thiry days, the customer will receive a full refund. After thirty days they will recieve a prorated refund. Accolades Most recently, Best Buy ranked in the top 10 for "Best Customer Service" by National Retail Federation in 2005, a winner in Fast Company magazine's 2005 Customers First Award, named "Company of the Year" by Forbes magazine in 2004, and "Specialty Retailer of the Decade" by Discount Store News in 2001. 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, based on their positions on the treatment of GLBT employees. Best Buy is an equal opportunity employeer. Criticisms Like many retailers its size, Best Buy has it's critics. The company has continued to evolve from a "sales" based company to a company focused on catering to its customers and their demographics, and places a large emphasis in their training and policies on ethics and fairness. Sale Advertising An incident in 2001 involving a video card pre-order being advertised on Best Buy's website at $99 due to a mistake when the actual price was much higher, spurred a nearly five hundred page thread on the forums of a computer hardware site HardOCP. Best Buy claimed it was a pricing mistake but some accused Best Buy of bait and switch, and pointed to various state trade laws that require all retailers to sell product at the advertised price, regardless of mistakes in pricing. Best Buy claims that these incidents are rare and usually due to the fact that Best Buy advertises on a national level. Individual store stock levels are not checked when the circulars are produced (sometimes up to 3 months in advance of publication). The company's policies strictly prohibit bait and switch tactics or the misrepresentation of product and services. It is virtually impossible to "bait and switch" at Best Buy, as every product price is pre-programmed into the system by the corporate office and an intentional bait and switch would do much more harm to the company than good. Some accuse Best Buy of manipulating stock levels so that advertised items sell very quickly and are no longer available. It should be noted the price mistake only occured on its online store and not in its brick and mortar stores. Best Buy has not been found of any wrongdoing legally in this incident. Another alledged incident occurred in a Portland store during the initial sale of the XBox 360. An employee, whom the media labeled "Chris," informed local media that his Best Buy store was selling the systems only as part of a package, and denying the sale of Xbox 360 to anyone who didn't buy an expensive "bundle" of accessories and services with the device. [1] According to Chris, an 11-year old gamer was denied the purchase of the Xbox 360 because he only had enough money to cover the cost of the system. He also stated that management was refusing to allow returns of the bundled accessories. Best Buy has released a statement apologizing for this particular incident. Any unhappy customers are allowed to return undesired bundled accessories. * [2] However, even though the general advertisements are the same on a national level, they do differ slightly from region to region. In New York, all retailers must legally provide rainchecks for any product that is advertised but out of stock. The advertisements Best Buy issues in New York do not contain the wording "no rainchecks" on many advertised products. Lawsuits Best Buy is a large target of lawsuits in the United States. Most lawsuits are minor and filed by customers in small claims court. These cases are defended by store managers, as lawyers are not allowed in small claims cases. However there are some cases that are major and sometimes class action or filed by attorney generals on the public's behalf. On May 26, 2005, Wisconsin Attorney General Peg Lautenschlager filed a lawsuit against Best Buy Co. for alleged mistreatment of customers. This mistreatment included the alleged misrepresentations of product rebates, service plans, and the return & exchange policies. According to Best Buy's spokesperson, Susan Busch, "Based on our view of the allegations in the complaint, we intend to vigorously defend the lawsuit and cannot comment any further on the pending litigation at this time." The suit follows an investigation in 2004 by Wisconsin's Department of Agriculture, Trade and Consumer Protection agency, after receiving complaints about the retailer's stores in that state. [3] On October 19, 2005 the Daily Herald reported that a woman is suing Best Buy after she was stalked by a Best Buy employee. It appears that the employee was already a convicted felon named Gregory Schaffter. The woman brought her laptop computer to the Best Buy store to Mr. Schaffter, for repair. The computer contained her personal information such as her e-mail address, street address, phone number and credit card. Schaffter repeatly called her cell phone and sent her e-mails containining numerous threats. Media appearances In 1997, a Reston, Virginia man, Ronald Kahlow, was arrested twice for trespassing while comparison shopping. Kahlow had first taken a laptop into the store to record prices on televisions, then a notepad. Kahlow later filed a civil suit against the company. In late November 2004, Dell ran an advertisement claiming Best Buy wishes to 'fire' 20% of its customer base. The advertisement was based on a Wall Street Journal interview with the company's CEO, Bradbury Anderson. Both the Dell ad and the Wall Street Journal article were claimed by Best Buy to have taken comments out of context, and confused Best Buy policies with ideas presented in a consultant's book. On March 8, 2005, the Baltimore Sun reported on a bizarre incident involving a Best Buy store in Lutherville-Timonium, Maryland. The technicians there incorrectly told Mike Bolesta that they were going to waive a $114 car stereo installation fee since they had previously been wrong when they said a certain model would fit in his son's car. When he was later called and told that he had to return to pay the fee, he decided to pay in fifty-seven $2 bills. Apparently, he keeps the rare bills around as a gimmick for the children whom he hosts as owner of Capital City Student Tours. The cashier at first refused to accept the $2 bills, not knowing that they were valid legal tender. The staff at the Best Buy store believed the bills to be counterfeit, because they had never seen such a denomination before, and the ink smeared when the bills were rubbed with a counterfeit detection pen. They called Baltimore County police, who promptly arrested Bolesta and took him to jail. He was freed only after a United States Secret Service agent explained that the ink on U.S. dollar bills is capable of smearing. The incident was subsequently publicized on numerous blogs and Web sites as an example of the incompetence of Best Buy personnel, and was also seen to be an example of a company working above the law. Incidents On May 27, 2005, a New Port Richey, Florida, resident named Marlene Anne Bagnall allegedly held a Best Buy service technician at gunpoint, due to his inability to repair a television. The aforementioned television had been serviced several times that week, though had not worked to Bagnall's satisfaction. Apparently, the 58-year old John Meyer was held at gunpoint, with Bagnall demanding that the retailer give her a new television. Meyer could not call the police as she, allegedly, threatened to kill him as well as turn the weapon on herself (see: murder suicide) were he to do so. Once an unnamed Best Buy employee verbally promised the 44-year old Bagnall that she would receive a new television, Meyer was allowed to leave. After leaving the premises, Meyer immediately called the local sheriff's office, which resulted in Bagnall's arrest. She was summarily charged with aggravated assault and unlawful imprisonment. She was subsequently released on a $10,000 bail prior to May 29, 2005, and has apparently had a history of mental disorders, which her husband claimed were being treated with medications. (Sources: [4], [5]) Company Core Values Have fun while being the best Learn from challenge and change Show respect, humility and integrity Unleash the power of our people Mission Statement "Making life fun and easy." Past slogans "Turn on the Fun!" "Thousands of Possibilities. Get Yours. Best Buy." "The intersection of technology and life." "Now that's a great idea!" "Just the Store You've Been Shopping For." "More to Buy" External links Best Buy Main Site — Best Buy's main website, products can be viewed and purchased online. Best Buy Canada — Best Buy's presense in Canada. Geek Squad — Best Buy's computer repair division, capable of 24/7 on-site service as well in in-store service during business hours. Magnolia Audio Video — Best Buy's high end home theather division, as well as audiophile store. Best Buy for Business — Best Buy's division to cater to the unique needs of small businesses. Future Shop Canada — A store Best Buy purchased in Canada that also sells consumer electronics. Best Buy Cares — A site were customers can lodge complaints or compliments with the company. This site is owned by Best Buy. Best Buy Philanthropy — Best Buy donates 1.5% of it's profit to charity. This is the home of Best Buy for Children and other charity programs. Search Term: "Best_Buy" Categories: NPOV disputes | Companies traded on the New York Stock Exchange | Retail companies of the United States | Consumer electronics companies | Companies based in Minnesota | Fortune 500 companies | Multinational corporations