BUSINESS ANALYTICS IN BEST BUY

QUESTION

essay on the definition of business anlytics in business
in the pursuit of better decision making about the business,business anlytics has become an emerging discipline.in the attached article’inside best buy’s Customer-centric strategy’by ranjay gulati(2010),he discusses the approaches that two organisations took,namely,Best buyand circuit city.

using atleast ten peer reviewed scholarly journal articles discuss the following using your own words:
a)what the role f business anlytics in these organisations(state the type of organisation that ur focusing on)
b)the different methods of anlyses that are available to these organisations to improve business decisions and
c)compare and contrast the business analytics decisions used in the two organisations using the business anlytics frame work

SOLUTION

Role of Business Analytics

Business analytics is an important concept used in today’s organization, to analyse and streamline the various processes used in the organization for its proper functioning and growth. It helps to understand the various business processes, business procedures and how they are affecting the organization. For this the professionals analyze not only the external and the internal factors but also the opportunities and threats for the organisation and use this information to frame-out the plan where business should improve and move. Various technical tests are conducted and the development team ensure that these are implemented in the business.

Circuit city and Best buy are the retail stores of US selling consumer electronic like mobile, laptop, camera, desktop, digital appliances, home audio, GPS etc.

The business analysis done by these two organizations has contributed towards its growth and downfall. We will analyse separately what are the business analytics tools, method followed.

CIRCUIT CITY:

Circuit City  is one of the retail stores in US ,but time went by and there were many retail stores coming up, Circuit City lost its strength and consumer base and this was because the business analysis done by it was not correct. The central problem with Circuit City was that they were just focusing on the spent lots of operational funds on it. And less on how they were presenting the gods to the consumer NAD what was the after sale strategy and the customer satisfaction level.

They were still continuing with the same strategy. This was the most difficult problem with The Circuit City. And they were not changing or modifying their strategy to cut the competition with the new Retail upcoming stores of other competitors. The competitors took advantage of its slow and outdated strategy and could come up with new and innovative strategy to catch the customer and market. Overall the central problem was with the strategy formulation as per the need and requirement of the day and scenario. Circuit City was just enjoying its revenue generation formula in domestic market of US.

And they even did not realize that the new competitors from the private business came in that services and grabbed the market share of Circuit City. The tools used by them was helping them to generate large revenue for it was not helping them to retain their customers or attracting the customers. They could not realize what were their internal processes to be modified? and what were the threat for them in the market.

BEST BUY:

On the other hand Best buy retail store business analysis method and tools was fetching them not only large revenues and shares but also attract new customers nad retain the existing ones.

.It was because of its effective strategy formulation that it, was a Ble to build up a brand image for itself in the market .The brand image and its effective and fast customer service are the most effective strength for the BEST BUY in US domestic market.

The efficient customer service provided by the salesman, reamins the essence of the BEST Buy’s business. And this was because it was able to identify the opportunities in the market, and that were to grab the international market by identifying the need and demands all over the world, Collaborative with the effective and strategic consulting players to get the new and updated strategy for the long run and competitive advantage.

The various retail stores functioning in the market for digital goods selling were the biggest threat for the Best Buy. Losing market share and money was a crucial threat for Best Buy and for this they developed effective strategies, since, that money was going to its competitor’s pocket.

Quality of services and cost were two effective strategies for the Best Buy that could lead it on the top of the mailing services in the US domestic market. They were focusing towards every aspect of the market and services and this has made them effective and efficient market player in the consumer electronic retail stores.

Use of Business Analytics Framework by the two organizations- Best Buy and Circuit City

As we know both of the companies i.e. Best Buy and Circuit City are incorporated with the same kind of business i.e. consumer electronic goods. As per the recent scenario and business frameworks analysis it is quite clear that Circuit City is not doing good in their business and that is why they are losing their market share and the Best Buy is capturing more market share by using and effective business analytics framework and decision making strategy based on the business analytical tools and methodologies for the future prospective of the business and to gain competitive advantage. We can see the huge differences in their decision making abilities and strategies based upon the business analytics framework.

Best Buy: As per the Gartner Business Analytics framework that is the best suitable business analytics framework for the service sectors and being vastly used by the market players, we can see the effective and efficient utilization of the resources and their decision making abilities and that is helping Best Buy to enhance their performance and increase the market share in a competitive manner and also gaining the competitive advantage over the other market players.

Framework: The framework is based upon three main aspects of the business, which are as follows:

1. People: People are the main concern, on which the organization should put more focus at each phase of the business decision processes. Starting from consumer, buyers, suppliers and other stakeholders all are given weightage while making business decisions for the long term business prospective and growth.
2. Processes: There are various set of processes which helps the business to make better and improved decisions based upon the analytical tools and techniques for the optimal utilization of the available resources and to gain the competitive advantages. The processes may include analytical processes and decision processes mainly. If the organization is focusing over their processes and keeping a close eye over the processes, then there are immense chances of business growth and improvement. Best Buy is considering this aspect and that is why they are actually improving in their business process.
3. Platform: Platform gives the support to the overall performance of the business by means of supporting and improving business decision support systems and processes and also helps in analytical capabilities and the information capabilities to work upon these aspects and helps in better decision making and strategic formulation for the long term goal achievement.

These aspects are being taken care by the Best Buy management and they are increasing in all the aspects of their business improvement and also growing their market share as compared to the Circuit City.

On the other hand if we talk about the Circuit City and their business analytical framework and their implementation we can see their non innovativeness and non availability of the performance improvement is leading to the decrease in the customer base for the Circuit City.

1. People: They are not very much concerned towards the customer, supplier, buyers, competitors and stakeholders. This is resulting in the less effectiveness in the strategic formulation by the Circuit City.
2. Process: The business process is also not very much competitive and effective which is being utilized by the Circuit City and it is not concerned to the long term business growth and strategies.
3. Platform: Platform provides the base for the organizational capabilities, analytical capabilities to further enhance their business decision making strategies and its implementation.

These all are the most important things which lead to the business improvement based upon the business analytical tools and methodologies which is being supported by the management and the organization. If the organization will lack in following and utilizing these aspects then there are great chances of degradation of the business and the market share and this will work as a competitive advantage for the competitors.

Methods of Analysis:

Both the organizations are using various methods and methodologies to support their decision making abilities and to improve their performance.

1. Statistical modelling: There are various statistical modelling available to help and support in the business analytics and business decision making. These methods are based on the statistical data collection, problem identification, and analysis of the collected data and then the results orientation based on the various statistical tools and techniques.
2. Empirical study: It is a king of real life happing and the analysis of that happening for the future perspective and future concerns. It may be qualitative and quantitative as per the requirement of the research and the study. This method is again helpful for the business decision making and prediction based on the current happenings and the occurrence of the events which may have a direct or indirect effect over the business and the business decision system.
3. Hypothesis testing: Hypothesis testing is again a kind of statistical method for the business analysis and the business decision making that helps the management to make an effective analysis based on some hypothetical consideration and as per the results of the hypothesis testing and the effectiveness the decision is being made.

These are the various methods being used by the businesses to improve their business based on these methods and the results derived from these methods and the techniques. As per the present scenario and the growth of the business of Best Buy, we can easily conclude that they are effectively using the various methods for the business analysis and that is helping them to grow their business and on the other hand Circuit City is somewhere lacking in effective utilization and implementation of these methods which is leading to the decrease in their market share and growth rate.

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