Best Buy 2014 Annual Report Download - page 4

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capabilities. Two, we believe there are multiple growth opportunities we can pursue,
including deepening our relationship with our customers and better serving them around key
buying occasions.
Successfully implementing our strategy has implications across all facets of our business and
we have outlined a clear road map of initiatives that we will be pursuing over the next two
years. All of these initiatives are in pursuit of our long-term goal of generating an operating
margin of 5-6% and a Return on Invested Capital of 13-15%.
For example:
Our merchant teams are focused on creating compelling assortments online and in
our stores with a superior end-to-end customer experience that yields enhanced
financial returns. They are also working on strengthening vendor partnerships for the
benefit of our customers, our vendors and our shareholders.
Our marketing teams are focused on evolving our approach from “one-size-fits-all” to
targeted, relevant and personalized marketing. They are also developing our strategy
to better serve customers around key life events and gifting occasions, such as
moving or marriage, which often motivate customers to make a purchase.
Online our goal is to continue to capture share and serve customers based on how,
where, and when they want to be served. Our aspiration is to present a rich end-to-
end digital experience that inspires customers to select and purchase complete
solutions to meet their technology needs.
In stores, we are evolving our organization to better support the mission of retail,
which is (1) the flawless execution of category and functional strategies; (2) the
development and implementation of strategies that take into account local
specificities; and (3) lifting performance in terms of employee engagement, sales,
customer satisfaction and profitability.
Our services team is intent on leveraging our distinct competitive advantage in Geek
Squad by delivering a superior experience for customers. A reinvigorated Geek
Squad will complement the products we offer and cement its proud history as the first,
largest and best consumer electronics services organization in the nation.
We will deliver on another key opportunity by further leveraging our supply chain to
provide our customers with increased inventory availability, improved speed and a
superior in-home delivery experience.
Beyond this road map, we will continue to pursue cost reduction opportunities in
support of our recently increased target of $1 billion. These opportunities include
returns, replacements and damages, logistics and supply chain, procurement, and the
continued rationalization of our organization.