Best Buy Mobile was developed after acquiring a 50% share in Best Buy Europe (with 2,414 stores) from the Car phone Warehouse; It intended to open small-store formats across Europe in 2011. INDUSTRIAL ENVIRONMENT the consumer electronics industry managed to grow to a record high of IIS$694 billion in sales-a nearly 14% increase over 2007. In years immediately prior, the growth rate was similar: 2007 and 17% 2006. This momentum, however, did not last. Sales dropped 2% in 2009, the first decline in 20 years for the electronics giant.
A few product segments, including televisions, gaming, mobile phones, and Blue-ray players, drove sales for the company. Television sales, specifically LCD units, which accounted for 77% of total television sales, were the main driver for Best Buy, as this segment alone AC- counted for 15% of total industry revenues. The gaming segment continued to be a bright spot for the industry as well, as sales were expected to have erroneous room for growth. Smart- phones were another electronics industry segment predicted to have a high growth impact on the entire industry.
The consumer electronics industry had significant potential for expansion into the global marketplace. There were many untapped markets, especially newly developing countries. These markets were experiencing the fastest economic growth while having the lowest ownership rate for gadgets. Despite the recent economic downturn, the future for this industry was optimistic. A consumer electronics analyst for the European Market Research Institute predicted hat the largest growth will be seen in China (22%), the Middle East (20%), Russia (20%), and South America (17%).
