Best Buy Value Chain Analysis in 2022 (Detail Analysis)

Best Buy is a global multichannel electronic shop that uses technology to improve the quality of life. The company modernizes its distribution network to thrive in the current digital economy. It keeps producing operational advantages that appeared unattainable in the past.

The firm, so far, has accomplished a better supply chain operation by integrating advanced expertise, such as efficient and effective stock controls. Combined, these factors make the company manage upper-level customer service, optimum cost savings, and a high conversion rate.

Background of Best Buy

As of 2022, Best Buy is a retailing business that sells consumer electronics and gadgets. However, the company’s sales are not limited to electronics but include repair services, consultation, and maintenance.

Whenever customers consider buying the target appliances, they are likely to consult with the firm before purchasing.

To enhance consumer expectations, the entity is reshaping all of its regional distribution centers (RDCs) and establishing metro e-commerce centers (MECs).

It also collaborated with other related-service solution businesses to unite pre-set storage, retrieval tools, mechanical handling equipment, and warehouse operating systems to create a broader provision for potential clients.

What is Best Buy Value Chain Analysis in 2022?

Best Buy’s value chain analysis assists the company in identifying and developing its overall operations to get a substantial cutthroat over competitors. Many giant corporations such as Sharp and Toshiba also see value chain analysis as a strategy for gaining a canniness where they invest extensively in R&D execution of their value chain.

As a result, Best Buy must establish its unique selling points where it can receive a better approach to needed materials. This might consist of intangible resources, property, expertise, or a logistics system. That is why Porter’s general tactics work best for attaining competitive advantage in the wide-ranging business industry.

Therefore, if you have ever wondered how Best Buy became the biggest consumer electronics shop in the United States, or what the firm’s value chain looks like in 2022, here is the place to find out!

Best Buy Primary Activities

Inbound Logistics

This analysis follows a company’s surveillance at all processes, from raw resources to the final product. It also includes obtaining raw resources, storing the inputs, and internally distributing the raw materials and parts to begin manufacturing.

Cultivating a solid engagement with suppliers is indeed super crucial. The reason is suppliers need to take part in proper receiving, storing, and delivering the product.

Best Buy may encounter various issues throughout the product improvement cycle if inbound logistics are not thoroughly examined.


Manufacturing, packaging, constructing, and inspecting are characteristics of operational operations. Evaluating operational operations is critical for expanding production, mounting efficiency, and assuring the entity’s competitiveness.

Hence, once the resources arrive, the importance of evaluating systematic operations enlarges.

In addition, Best Buy is ready to turn the raw material into finished goods and feature it in commerce. This segment also covers repairing and maintaining the equipment.

The efficient operation may assist the firm in accumulating constant market growth, aggregating revenues, and creating a resilient competitive advantage.

Outbound Logistics

Outbound logistics operations may include:

  • Material management from warehouses.
  • Ordering processes, lead time.
  • Transportation.
  • Distributing to the desired location.

These include the arrangements of product shipments to customers through agents. Best Buy can study and optimize its outbound logistics to identify its core competencies and meet the company development goals.

Once these operations are handled on time cost-effectively, delivery procedures are less likely to impact product quality negatively. Therefore, it maximizes customer satisfaction and expands the corporation’s growth potential.

The organization should prioritize its outbound logistic operations when its items are volatile and need immediate delivery to the end consumer.

Marketing and Sales

Manufacturing decent items at a reasonable price with extraordinary features is not enough. Clients need to feel that the supplied items are superior to other rivals so that the organization can maintain its brand image.

Consequently, Best Buy must engage in sales and marketing to make the users believe that they are using the right items.

The corporation’s vivid efforts of advertisement, salesforce, promotional campaigns, pricing, channel distributions, and relationship management with all stakeholders of the advertising team are fundamentally crucial in supply chain analysis.

Effective sales and marketing may help the firm build brand authority and distinguish the business from its rivals. As a result, the organization has to prevent misleading promises regarding item features that the manufacturing department cannot achieve.

After-Sales Services

Best Buy’s pre-sale and post-sale services highlight a significant part in building consumer trust. Both before-sale and after-sale facilities are as critical as sales and marketing.

In today’s digitally sophisticated world, the impact of negative publicity caused by irresponsible customer service cannot be underestimated.

To secure excellent entitlement, the firm should examine its core operations and turn them into a positive brand image, such as rapid, responsive, and supportive.

Best Buy Support Activities


Quality assurance, legal affairs administration, budgeting, finance, scheduling, and corporate strategy are all examples of business infrastructure.

Best Buy can optimize the importance of the entire supply chain with an active network infrastructure. The organization may exert control over infrastructure operations to increase its market position, also known as overhead expenditures.

Human Resource Management

Best Buy filters human resources by examining recruitment, selection, coaching, incentivizing, performance appraisal, and other management operations. Meanwhile, the firm’s reliance on talents will heighten the connection of this supporting activity.

With the right motivation, dedication, and abilities of each staff, the company’s human resource management may push the business to less competitive pressure.

Moreover, the corporation may accomplish cost-cutting goals by comparing recruiting and training expenditures to their proportional return.

Technology Development

Advanced software, automated customer service, supreme product design, and data science are some examples of technology development.

This category highly includes the company’s research and development department, which incorporates manufacturing, marketing, sales, and human resource operations.

For instance, the firm separated its technology expansion into two categories: product and process technical innovation segmentations.


Procurement in the value chain refers to the activities associated with acquiring inputs such as tools, machines, materials, facilities, and other resources required to produce the final goods.

Since Best Buy takes part in numerous operations, it should carefully analyze its purchasing behaviors to elevate the inbound and outbound moves. Recognizing the significance between these correlated pursuits is necessary to adopt a worthwhile value chain analysis.

The entity should indicate fragments where worth can be constructed, the wise investment could be achieved, and workflows would be multiplied right after establishing the relevant components of its value chain undertakings.

Key Takeaways

As promising as it is, Best Buy can use value chain analysis to make the most of its cost advantages via operations, marketing, and other relevant activities, such as technology, human resources, extra facilities, and service.

Therefore, the business may restructure the entire supply chain or modify particular entities to establish the distinguishing foundation.

Remember that the sources of a strategic edge could be broadly classified into two areas: expense and differentiation.

Depending on the depth and breadth of its breakdown, the organization may get the advantage from one or both sources. Otherwise, it can get a competitive edge by getting unique and valuable inputs that rivals do not have easy access to.