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BESTBUY NEW

SERVICE
STRATEGIC BUSINESS
IYAYI EMMANUEL | VANINI CLAUDE
MD ARIFDEVELOPMENT
HOSSAIN | ABDELRAHMAN RAGAB
SAHAN DE SILVA
Content
01 02 03
As-Is To-Be Strategy

04 05
M&A Plan Valuation
01
As-Is
Internal & External Analysis
Fig: Consumer electronic market growth in the USA
Fig: GDP per capita in the US (2000-2023) Fig: Unemployment rate in the US
Market Participants

Walmart Amazon Target


• Largest retailer ranked • Market Leader in E- • Revenue $104.4 Billion in
19th Commerce US
• Revenue $459.5 Billion • Revenue $217.8 Billion in • 1954 stores in USA
in USA USA

• 11500 stores in 27 • Main KPI is CEM


countries

https://www.statista.com/statistics
Market Participants

Asurion Micro Centre Ubreakifix


• Specialist in consumer • Specialist for electronics
•Top supplier of insurance electronics like computer, repair solution
and extended warranties laptop • Revenue $520 Million in
• Revenue $3 Billion in USA • Revenue $866 Million in USA
• Partnership with Best Buy USA

https://growjo.com/company/
Market share

4.12% 14.53% 3.1% 7.7%


Micro Centre Asurion Amazon Walmart
Customer Analysis

Leadinghome appliance retailers in the United States in 2019 and 2022 (based on a 1,000 point scale), by
https://customer.guru/net-promoter-score/best-buy customer satisfaction
Customer criteria for electronic
service-offering retailer selection
Entertainment Products Domestic Appliances Consumer Electronics

Eco-friendly initiatives
Quality and reliability
Online and offline presence
Customization & personalization services
Trade-in & upgrade programs
Technical expertise
Extended warranties and protection plans
Installation and setup services
Customer service & support
Availability of accessories and spare parts
Product reviews & recommendations
Price & value for money

0 % 1 0% 2 0% 3 0% 4 0% 5 0% 6 0% 7 0% 8 0% 9 0% 00 %
1
Customer preferences when it comes to choosing a channel to
access service offerings

100% 90%
90% 85%
80%
80%
70% 65%
60% 55%
50%
50% 40%
40%
30%
20%
10%
0%
rt e ns s t
es rt
o c ce en c o
pp an tio ur m rvi pp
su is
t tl a e e su
re s u so a g s e
to as ns re ng d ot
s co ce e se m
In
- i ne e vi p a e
nl n e r ap t-b R
O
P ho lf-
s
ile en
Se ob tm
M o in
A pp
Usage patterns of channels
preferred by customers

Consumer In Store Support


Electronics Online Assistance Channels

Domestic
In-store Support
Appliances
Phone Consultation

Online Assistance Channels


Entertainment
In-store Support
Products
Phone Consultation
Identifying  Tailor Best Buy’s
Customer channels
Preferences  Customer-centric
approach
Financial Performance
BestBuy Key Financials
60.00

50.00

40.00
Amount in Billions

30.00

20.00

10.00

-
FY2019 FY2020 FY2021 FY2022 FY2023

Key Metrics by Year

Revenue Gross Profit SG&A EBIT


Operational Performance
Operational Performance
Number of stores Retail Square Footage
1,260 45,000
1,240
1,220 44,000
1,200
43,000
1,180
1,160 42,000
1,140
1,120 41,000
1,100
1,080 40,000
2019 2020 2021 2022 2023
39,000
Number of stores 2019 2020 2021 2022 2023
Ch1
Retail channel performance data research contains
Ch1
Ch1
02
To-Be
Markets, Positioning and
Future Scenarios
Ch2
Intensity of competition
Market Life Cycle Phase
Life-cycle​ Embryonic​ Growing​ Mature​ Aging​

Market growth​ ​ ​ ​ ​

Market ​ ​ ​ ​
volume potential​
Market ​ ​ ​ ​
share distribution​
Production ​ ​ ​ ​
capacity​
Technology focus​ ​ ​ ​ ​

Impact of costs​ ​ ​ ​ ​

Total​ ​ ​ ​ ​
Market Attractiveness
Competitive Positioning
Strategy Path
Market trends

Rise of e- Artificial
commerce Intelligence
Investing in e-commerce Developing AI-powered
capabilities solutions

Augmented and Right-to-repair


Virtual Reality movement
Integrating AR/VR Supporting the right-to-repair
technologies movement
Future Scenarios
Scenario 01 Scenario 02
qCollaborate with AR and
VR technology firms to
qUtilize both AI-driven
develop AR-powered self-
diagnostics and AR
repairing services since
powered self-repair
inadequate existing AR
services
developments.
qLeverage on both
qUtilize AI-powered
technological
solutions such as repair
developments to achieve
diagnostics, chatbot
market growth.
support, and personalized
solutions.

Reference Scenario Alternative Scenario

1- Reference Scenario
2- Alternative Scenario
Future Scenarios cont.
Scenario 01
 High market growth since technological advances in both AI, AR, and VR
 Right-to-repair movement
 There are mobile and other electronic players that have already penetrated the services and
repairing market: Apple, Huawei, Samsung, MSI, Dell, etc.
 With above market players there will be serious competition in the marketplace since customers will
tend to use the repair services of their own brand
 Will be hard for Best Buy to penetrate the conventional repair market thus Best Buy must improve its
self-services featured with AI, AR, and VR to differentiate itself in the marketplace
03
Strategy
Blue Ocean, Resources and
Management
BALANCED SCORECARD
BALANCED SCORECARD
BALANCED SCORECARD
BALANCED SCORECARD
Ch3 Customer Objective
Ch3 Internal Process
Strategic Management
Capex allocation and FTE:

FTE

Number of hours 8

Number of 5
days/week

Weeks/year 52

Total 2080

Number of days/year 260

Total 10400

FTE/year 5
Financial Strategic objectives
Organizational Capacity objectives
Strategic project management Cont.
Targeted marketing campaigns Competitive pricing analysis
• Identifying and targeting specific • Analyzing market trends and
customer demographics with personalized competitors' pricing to make informed
messages and creative content pricing decisions that ensure
• Marketers, creatives, data analysts, and competitiveness and profitability
campaign managers • Marketers, pricing analysts, and data
scientists

Customer feedback system UIUX and functionality


implementation enhancement
• Choosing an appropriate feedback • Conducting user research, identifying
platform, designing feedback collection pain points, prioritizing adjustments, and
procedures, assessing customer data, and employing user-centered design concepts
responding to alleviate customer • Designers, developers, and product
complaints managers
• Customers, employees, and managers
Strategic project management Cont.
Referral system development and Conduct process analysis and
launch optimization
• Developing and launching a referral •Identifying inefficiencies in current
system to encourage customers to refer procedures, optimizing workflows to improve
others and generate new business. efficiency and reduce costs, tracking process
performance and identifying areas for further
• Marketers, product managers, and
improvement
customer service representatives •Process analysts, business stakeholders, and IT
professionals

Self-repair platform enhancement Platform content updates


• Incorporating user-friendly • Updating platform content to provide
troubleshooting capabilities, providing accurate and engaging information to
extensive self-help materials, and users by content creators, editors, and
regularly updating the platform based on marketers
customer feedback • Content creators, editors, and marketers
• Engineers, product managers, and
customer support representatives
Strategic project management Cont.
Course module development Employee career / wellbeing
•Developing engaging and interactive course development programs
modules that meet the learning objectives of •Evaluating employee skills, providing training
the course, by tracking student engagement and development, supporting work-life
with modules balance, and establishing a supportive work
•Instructors, instructional designers, and environment
developers •HR personnel, managers, and employees

Customer feedback integration


(process optimization
•Analyzing customer feedback data,
discovering areas for improvement,
incorporating input into decision-making
processes, and setting changes in place
•Customer feedback analysts, product
managers, and customer service
representatives
Project Portfolio Management
Strategic Fit Self-repair platform enhancement

Targeted Marketing campaign


Employee career/wellbeing development

UIUX and functionality enhancement

Customer feedback system implementation


Competitive price analysis

Course module development Customer Feedback integration (Process opt)


Conduct process analysis and optimization
Referral system development & launch
Platform Content Updates

Short term(0-1 year) Mid term(1-2 years) Long term(more than 2 years) Project duration
04
M&A Plan
Deal and Processes
Setup and Concept of M&A
Contact & Non-Binding Offer
Form Form a core team

Determine Determine a strategy to approach the target

Contact Contact the target

Sign Sign a nondisclosure agreement (NDA) and letter of intent (LOI

Receive Receive a confidential information memorandum (CIM)

Analyze Analyze the CIM and prepare a detailed business model

Conduct Conduct pre-due diligence.

Prepare Prepare a non-binding offer (NBO)

Obtain Obtain board approval

Send Send the NBO


Ch4diligence and the creation of a binding offer process

1 Structuring Transaction 2 Carry out Due Diligence


3 Visit Data Room and Analysis

4
Conference with Management
and Site Visits 5 Finalize Business Plan and
Financial Structuring 6 Equity Story

7
Create Binding Offer and after
Board Approval
Merger and Acquisitions Deals and Processes
Amalgamation Assessment Financing Documentation
scheme’ preparation

Negotiations, signing and closing Due diligence

Signing Final petition for


approval
05
Valuation
Buyer and Seller Perspectives
SELLER PERSPECTIVE
PROJECTIONS
iFixit Sales, COGS and Gross Profit Projec- iFixit SG&A and EBIT Projections
tions 60.00
180
50.00
160
140 40.00
120
100 30.00
80
20.00
60
40 10.00
20
0 0.00
2023 2024 2025 2026 2027 2023 2024 2025 2026 2027

Sales COGS Gross Profit SG&A Series2 Series3 EBIT


PROJECTIONS
iFixit Key Metrics iFixit Projected Discounted Rate Curve
180 1.20
160
Amount in Mio. Euro

140 1.00
120
100

Discounted Rate
80 0.80
60
40 0.60
20
0 0.40
2023 2024 2025 2026 2027 2028ff
Years 0.20

0.00
13 12 12 11 11
Sales COGS Series3
Gross Profit Series5 SG&A Net Present Value
Free Cash Flow
TARGET SYNERGIES

+3
-5% -4%
%
Marketing Procurement Admin
(Sales (COGS) (SG&A)
Growth)
BUYER PERSPECTIVE
Thanks!
Do you have any questions?
Content
01 02 03
As-Is To-Be Strategy
Describe the topic of Describe the topic of Describe the topic of
the section briefly the section briefly the section briefly

04 05 06
M&A Plan Valuation Financial Plan
Describe the topic of Describe the topic of Describe the topic of
the section briefly the section briefly the section briefly
Contents of this template
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Mission
Statement
Lists help you make your point
clearer because:

● They’re simple
● Organize your ideas
● Be specific
Our
company
Mercury is the closest planet to
the Sun and the smallest in the
Solar System. It is only a bit
larger than our Moon
01
Business Overview
You could enter a subtitle here
if you need it
Market trends
JUPITER
Jupiter is the
23
biggest one
%
55 MARS
It’s a very cold

VENUS 22 % place, not hot

Venus has a
nice name
% If you want to modify this graph, click on it, follow the link,
change the data and paste the new graph here
PROBLE SOLUTIO
M
Mars is cold. Its N
Saturn is ringed and
atmosphere is full of composed of helium
iron oxide dust and hydrogen
Competitors

MARS VENUS SATURN


Despite being red, Venus has a Saturn is the
Mar is cold beautiful name ringed planet
US THEM
Mars is cold. Its Saturn is composed
atmosphere is full of mostly of hydrogen
iron oxide dust and helium
02
Market Analysis and
Competition
You could enter a subtitle here
if you need it
Target
35 85 30 55
K K K K

60% 40%
Mars is actually a Venus is hot but
very cold place has a nice name
Market size

45% 75%
MARS MERCURY
Mars is cold. Its Mercury is the
atmosphere is full of smallest planet in the
iron oxide dust Solar System
Market share

45% 60% 45% 95%


VENUS MARS MERCURY SATURN
Venus has a Mars is a cold Mercury is the Saturn is the
beautiful name place, not hot smallest planet ringed planet
Competition analysis

Saturn Mercury
Saturn is the Mercury is the
ringed planet smallest planet

Mars Venus
Mars is a very Venus has a
cold place beautiful name
03
Sales and marketing plan
You could enter a subtitle here
if you need it
Our services

MERCURY MARS URANUS


Mercury is the Mars is a very cold Uranus is the coldest
smallest planet place, not hot planet

SATURN NEPTUNE JUPITER


Saturn is the ringed Neptune is the Jupiter is the biggest
one and a gas giant farthest planet planet
Break-even analysis

SALES
PROFI
Mars isTa
cold place,
not hot

LOSS
Venus is hot
but has a
nice name UNITS
A picture always
reinforces the
concept
Images reveal large amounts of
data, so remember: use an image
instead of long texts
Our plans

PLAN A PLAN B
Mars is a cold place. Mercury is the
Its atmosphere is full smallest planet in the
of iron oxide dust Solar System
Sales and distribution

Channel 1 Channel 2 Channel 3 Channel 4


Saturn is the Mars is a very Uranus is the Jupiter is the
ringed planet cold place coldest planet biggest planet
Advertising
and
promotion
If you want to replace the image
on the screen with your own
work, right-click on it, choose
“Replace image” and add yours
04
Management plan
You could enter a subtitle here
if you need it
Our team

ALFIE FRANK ADA


EVANS
Mars is a cold BROWN
Saturn is the WRIGHT
Venus has a
place, not hot ringed planet beautiful name
Organizational chart
● It’s a cold place
MARS ● It’s full of iron oxide dust

● It’s terribly hot


VENUS ● It’s second from the Sun

● It’s the ringed one


SATURN ● It’s a gas giant
Our partners
01 02

VENUS MARS
It’s hot It’s cold

03 04

MERCU JUPITE
RY
It’s small
R
It’s big
05
Operating plan
You could enter a subtitle here
if you need it
Our process
Day 1 Day 2 Day 3 Day 4
Saturn is the Neptune is the Jupiter is the Mars is a cold
ringed planet farthest planet biggest planet place, not hot
A picture is
worth a
thousand words
AWESO
ME
WORDS
Because key words are great for
catching your audience’s attention
06
Financial plan
You could enter a subtitle here
if you need it
Predicted growth

Surface
Mass Diameter
gravity
(earths) (earths)
(earths)
Mercury 0,06 0,38 0,38

Mars 0,11 0,53 0,38

Saturn 1,16 9,4 1,16


Balance sheet
1
3K 7K
M ASSETS
What the company
owns at the
LIABILITIE
What theScompany
owes at the
EQUITY
The difference
between assets and
moment moment liabilities
4,333,000,000
Big numbers catch your audience’s attention
«This is a quote. Words full of wisdom
that someone important said and can
make the reader get inspired»
—SOMEONE
FAMOUS
Thanks!
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info@slidesgo.com
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yourcompany.com

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JANUARY FEBRUARY MARCH APRIL MAY JUNE

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