Want Profits? Avoid Best Buy’s Example as Low-Price Leader

Best Buy provides lessons for small business. In adversity, there are two things a company must be hesitant to do: Cut marketing and human resources. Best Buy is a troubled company. Yet in 2014, it cut its marketing budget 26 percent, including its TV advertising budget 69 percent.
Some of it’s challenges stem from unfair Internet competition, and again it felt compelled to match the prices of online competitors in the 2013 holiday selling season. Once you start focusing on being the low-priced leader, you’ll stay there. Or worse, you’ll go out of business. In other ways, the company has caused its own problems.

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