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[DOCX File]Best Buy Strategy Management
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Amazon.com sells books, music, electronics, software, toys, and home improvement products online. In which product category does e-business offer the greatest advantage compared to a retail store chain? In which product category does e-business offer the smallest advantage (or a potential cost disadvantage) compared to a retail store chain? Why?
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Best Buy customer shopping behavior confirms accelerated growth in online influencing of offline sales. Best Buy customers are choosing to shop fluidly across stores and online channels. In December 35% of Best Buy retail purchases were directly related to visits to BestBuy.com.
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In fiscal 2012 Best Buy reported a net loss of $1.2 billion compared to net earnings of $1.3 billion in fiscal 2011. The 2012 net loss was primarily due to the buyout of Best Buy Mobile for $1.3 billion, which gave it full ownership of the fast-growing US mobile phone joint venture from British partner The Carphone Warehouse (TCW).
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