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Best Buy is the largest consumer electronics retailer in the United States, accounting for 19 percent of the market. Globally, it operates around 4,000 stores in the United States, Canada, Mexico, China, and Turkey. Its subsidiaries include Geek Squad, Magnolia Audio Video, Pacific Sales, and Future ShopBest Buy distinguishes itself from competitors by deploying a differentiation strategy rather than a low-price strategy. In order to become a service-oriented firm, it changed the compensation structure for sales associates and applied a customer-centric operating model to provide end-to-end services. It also heavily invested in the training of sales professionals so they can better understand products and better assist customers. As a result, the company is widely recognized for its superior service. Best Buy still faces competition, however, from large brick-and-mortar stores like Walmart, as well as e-commerce stores like Amazon. The economic downturn and technological advances (the frequent introduction of new products) have also put stress on its financial strength and the quality of its customer service. The key challenge for Best Buy is to determine the correct path to improve its differentiation strategy.
Assess the company's strengths and weaknesses by examining Best Buy's internal and external environments. Does the company have a competitive advantage? Your response should provide substance and be supported (cite sources.
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