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Buggle Chip Core

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In the case of Best Buy Inc.-Dual Branding in China, a strategy is explored as to how the existing consumer giant will potentially coexist with a company that it also will own in a new market. Best Buy was founded by Richard Schultz in 1966, which at the time was called the Sound of Music, specializing in the sale of retail audio components. Upon further expanding, the company departmentalized the categories of devices, connections and content which aided the growth of the sales of digital products to an increasing demand by consumers. Best Buy had tremendous growth rates year over year, at an average 17.5% yearly. By 2006, profits were at $30.9 Billion and ownership of 20% of the US market share of consumer electronic sales. Best Buy moved its headquarters to Minneapolis, MN where it fostered a median between technology and consumers and its goal of educating the consumer in a new digital age. The target customer for Best Buy were identified as being males between the ages of 15-39, educated and maintained a good standing financial situation. As the company grew, leaders created Standard Operating Platform that identified the highest revenue generator, customer segmentation, positioned stores to meet needs of consumers and empowered sales associates to continue to drive customers into the stores. In the early 2000’s the company had explored entering the international market and further expanded northward to Canada, where it would acquire a top Canadian CE retailer. Best Buy used a dual branding strategy, where the Canadian brand Future Shop would co-exist with the American icon Best Buy. This proved to be profitable and beneficial to adding brand awareness in the new international market. The company would be further challenged with expanding internationally, as it pursued the purchase of a top seller in the Chinese market a company called Five…...

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