Best Buy Company Inc.
), a multinational specialty retailer of consumer electronics, home
office products, entertainment software, appliances and related
services recently announced the launch of campus deals for college
The program makes available special offers and discounts on
technology products, for which they will have to register
themselves on the company's website using their college email
address. After the registration, the students will receive discount
and offer coupons on select products from Apple Inc (
) and Microsoft Corp (
) among others, which will be redeemable at Best Buy stores.
The timing of the announcement is perfect, since students will
soon be making purchases for the school year and will naturally
welcome offers on MacBook Pro, MacBook Air, iMac and other
Windows-based laptops. It is also a good way of disposing of
Windows 7 inventories prior to the launch of Windows 8.
Best Buy also initiated a new advertising campaign that focuses
on dorm room technology innovators. The campaign is intended to
further portray the company as a one-stop, forward-looking
technology purchasing destination for college students.
Best Buy has undertaken strategic initiatives to enhance its
long-term profitability. With its multi-channel strategy, the
company intends to augment its stores portfolio, which includes
closing of some underperforming stores, revamping of stores with a
new Connected Store format, and adding Best Buy Mobile stand-alone
The company faces intense competition from a diverse group of
competitors, such as
Wal-Mart Stores Inc.
), other consumer electronics retailers, mass merchants, mobile
phone service carriers, specialty home office retailers, and
numerous direct-to-consumer websites. This may adversely affect
both top and bottom line growth.
The company carries a Zacks #3 Rank, which implies a 'Hold'
rating for the next 1-3 months and correlates with our long-term
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