An Analysis of Best Buy's Turnaround And Its Plans For FY 2016

Best Buy's return on equity, which is a widely used indicator of a company's profitability, stood at a negative 8% at the end of 2011. While other similar companies went bankrupt, Best Buy took its online rivals head-on and turned around its operations. By matching competitors on price and focusing on providing a superior customer experience, they were able to prevent a significant fall in sales. While price competition would have hit margins significantly, the company averted this by cutting do...