Retailers target consumers and sell goods to them, and they identify demand through the supply chain and provide goods and services. Retailers buy and assemble goods. Best buy and staples are big giant American retail companies. It’s their responsibility to buy supplies in the most suitable economical way and pass it on to the consumers.
Best Buy vs Staples
The main difference between best buy and staples is their products. Best buy sells electronics, cell phones, computers, video games, and tech and their focus is consumer electronics. Staples, on the other hand, focus on office supplies and office-related products. They sell via retail channels and even business-oriented delivery options.
Best buy got established on 22nd August 1966 in Minnesota, United States. It was founded by James Wheeler and Richard M. Schulz. It was an audio focussed store known as Sound of Music. It got rebranded as best buy in the year 1983, with its primary focus on consumer electronics. They sell electronics, merchandise, and home appliances too. All of this takes place in a non-commissioned sales environment.
The concept of staples was developed in 1985 and established by Thomas G Stemberg, Leo Kahn, and Myra Hart. It is an American retail business with its primary focus on office-related products and office supplies. It offers print services too. Staples has a wide selection of products, and they even use advertising slogans.
Comparison Table Between Best Buy and Staples
| Parameter of Comparison | Best Buy | Staples |
| Main product | Electronics | Office supplies |
| Rank | Best Buy is ranked 100 among the global top brands. | Staples is ranked 313 in the list of top 1000 brands. |
| Location | Best buy has limited stores. | Staples is operational in many locations. |
| Technology | Best buy is a major retailer of software and hardware. For tech issues, best buy offers aid in tech issues. | Staples offer IT services through easy tech. |
| Type of Company | Public | Private |
What is Best Buy?
The best buy was the sound of music before. It was an electronic store which used to sell stereos. In 1967, the sound of music got acquired by the Bergo company and Kencraft Hi-Fi company. The following year the sound of music made about 1 million dollars in revenue. With expanding to seven stores in 1983 with over 10 million in sales, it got renamed Best Buy Inc.
Best Buy performed well, and in the year 1985, the company decided to go public. Two years after making that choice best buy debuted on NSE (New York Stock Exchange). They offer warranty services, computer repair services, and service plans for accidents. They have an online community where members can discuss experiences regarding the products and get answers from experts.
Best buy even have few House Brands:
- Platinum: Products include cell phone accessories, cables, and digital equipment.
- Dynex: Products include power cables, webcams, and Blu-ray players.
- Pacific Sales: They are available in select Best Buy stores. They cater to high-end appliances.
- Init: Products include media storage and furniture.
- Insignia: HDTVs, mini-refrigerators, and adapters.
Marketing Strategy:
The marketing strategy of best buy prioritizes the four Ps(Product, price, place, promotion). It has helped Best buy to become a huge brand. These strategies help Best buy make proper decisions and function efficiently.
Product strategy: The Best buy product portfolio offers six separate categories of products. Some of the categories are consumer electronics, home appliances, and entertainment.
Pricing Strategy: Best buy provides affordable common electronic goods. The prices are lesser than the competitors.
Place Strategy: Best buy has over 1400 stores in the United States. It has over 200 stores in Mexico and Canada.
Promotion Strategy: Best buy use social media well. They advertise through Twitter and Facebook. They even use flyers and signs to promote their brand.
Financial Strategy:
Best buy is focusing on building a leading position, and the company incorporates technology in meaningful ways. Best buy is launching a tech support team for solving consumers’ issues. Best buy is committed to investing in technologies and help people.
What is Staples?
The idea of staples was born from the frustration of relying on local shops for basic stationery and printing needs. At the time, Stemberg was thinking of various business proposals too. With the combined knowledge of the groceries business and the need for a business venture, staples originated.
The first staples store got opened in 1986 in Boston. It had financial backing from Bain Capital (a private equity firm). From 1991, Staples started expanding overseas and opened its first store in Ontario the following year. In 1996, after ten years, Staples surpassed three billion dollars in sales and became a member of the fortune 500. It has gained a lot of success and won many accolades over the years.
Marketing strategy:
The marketing strategy of staples focuses on the four P’s (Product, price, place, promotion). It helps the company to have an advantage over the competitors and achieve business goals.
Product strategy: Staples’s product portfolio focuses on furniture, office supplies, appliances, and business services. Their portfolio aims to meet the needs of corporations and consumers.
Pricing Strategy: The prices offered to consumers are reasonable. They have products priced at low, mid, and high levels. It is suitable for customers who prefer lesser costs.
Place Strategy: They have over 1500 locations in the United States and over 200 stores globally. Staples even supports online shopping via their website and not any other online platform.
Promotion Strategy: Slogans have added to their popularity. Examples of some of the slogans are “That was easy.” “Yeah, we’ve got that.” and their “Easy button.”
Financial Strategy:
Staples are shutting down stores and focusing on their online platform. It has helped them as their online sales have increased a lot. They have expanded to over 500,000 products online and expect to triple their inventory. Staples have been reinventing and launched many online advertising campaigns.
Main Differences Between Best Buy and Staples
- Best buy is an American consumer electronics goods retail company. Staples is a retail company.
- Best buy was founded by Richard M. Schulze. Staples was founded by Thomas Stemberg, Leo Kahn, and Myra Hart.
- The main competitors of best buy are Home depot, Ali Baba, Target, and Cost Co. The main competitors of staples are Walmart, Amazon, Microsoft, and Target.
- Best buy has around 977 locations worldwide and a strong online presence. Staples has 2000 retail locations worldwide and a strong market presence.
- The headquarters of Best buy is in Minnesota. The headquarters of Staples is in Massachusetts.
Conclusion
Best buy generated over 45 Billion in annual revenue. They believe technology serves people best. Best buy strives for better customer service too. Staples, on the other hand, is the largest component player in the office product industry. They have many products and services. Both of these companies play a vital role in the economy and are successful in their markets.
References
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3027023
- https://dl.acm.org/doi/fullHtml/10.1145/953460.953498