Best Buy 2005 Annual Report Download - page 3

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Key Wins
Best Buy 05 Annual Report
At Best Buy, customer centricity is about giving store employees more power to satisfy the unique needs of the people
who shop in their store. In fiscal 2005, we set the stage for accelerating our transformation to customer centricity:
• We completed a set of lab tests and
launched a group of 67 stores with
the successful, scalable elements
of this operating model.
• We expanded the Geek Squad®
to all Best Buy stores in North
America so more people could
access our 24-hour, rapid-response
technology support.
• We boosted the profits of our
Canadian stores, where we are
attracting more customers through
a dual branding strategy.
• We launched a three-year process
to re-engineer our supply chain
and expand our direct sourcing and
private label capabilities.
• We outsourced our information
technology function to simplify our
technology infrastructure, to build
capabilities and to reduce costs.
• We reorganized our resources
to support our long-term growth,
resulting in a smaller, more
focused executive team.
FISCAL 2006
Goals
• Launch a program to convert all
of our U.S. Best Buy stores to the
customer-centric operating model
within three years.
• Expand and strengthen our service
offerings, including the Geek Squad
and home theater installation.
• Boost employee retention in
order to deliver a better customer
experience while increasing
productivity.
• Add individualized marketing
capabilities to our skills in
mass marketing.
• Simplify our internal processes
so that they respond better to
changing customers’ needs.
Clearly, these five goals are linked. In order to reach our total shareholder return goals, we must deliver innovative
products and services that suit people’s lifestyles, through knowledgeable and tenured employees, supported by
individualized marketing programs and a more agile infrastructure.
FISCAL 2005