Juan Valencia Saravia
Interpreting The Dual-Brand Strategy of Best Buy in its Canadian Operation © 2011
This research investigates how the consumer electronics retailer Best Buy, which acquired Future Shop in 2001, implemented the ―dual brand‖ strategy for internationalization. This research examines how the ‗dual brand‘ strategy has been executed spatially, the differentiations between the two brands, and the effectiveness of the strategy. The chronological development of both companies is reviewed, and trade area analysis for the Toronto Census Metropolitan Area is performed. The study reveals that Best Buy used a spatial proximity strategy to locate its stores in the larger metropolitan markets. In the Toronto CMA, the two brands have minimal geographical differentiation, very similar product offerings, and similar price structures. Trade area analysis for the stores in the Toronto CMA reveals that the Best Buy stores are located in areas with high average household income, and high proportion of the population with post secondary education. In contrast, the Future Shop stores are established in less affluent areas, with relatively high proportion of immigrant population.