A 2011 Social Media’s Impact on Customer Engagement report revealed that more than 70 percent of firms say they are no longer are able to avoid using social media in its marketing and communications with customers. Forrester Research reports that Best Buy and Amazon.com are two of the most proactive companies when using and implementing social media into their business operations. For example, Best Buy aids consumers through Twelpforece, where customers can send a tweet about consumer electronics problems to an account that is shared by 2,500 Best Buy employees. Amazon’s success with social media is based largely on its ratings and reviews from customers, providing both Amazon and potential customers meaningful information in pricing, quality, and features of the products offered. Although social media may seem as burdensome to some corporations, failure to take full advantage of this technology will likely leave corporations at a distinct disadvantage with rival firms.
Regardless if Schulze or someone else acquires Best Buy or the firm continues to operate on its own, a clear, detailed strategic plan will be essential for the firm to navigate such turbulent water ahead. Walmart and Amazon especially continue to take market share from Best Buy, and many other firms too are joining in the fray. If the company is not real careful, it will go the way of its former rival Circuit City and be forced to eventually liquidate. Some analysts ponder who will declare bankruptcy first, Best Buy or RadioShack, arguing that the writing is on the wall for both firms, unless an effective strategic plan can be formulated and implemented pronto.