Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
You are here: Home / Business Briefing / Best Buy Bets on a Connected World
Best Buy Bets $1.3 Billion on Connected World
Best Buy Bets $1.3 Billion on Connected World
By Jennifer LeClaire / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
In a move to capitalize on what it calls the growth of the "Connected World," Best Buy is making sweeping changes to its operations. Center to those efforts is the acquisition of Carphone Warehouse Group.

Best Buy on Monday announced it will purchase Carphone Warehouse Group's shares in the U.S. and Canadian Best Buy Mobile unit for $1.3 billion. That gives Best Buy full ownership of the business. The acquisition signals Best Buy's bet that the mobile industry will continue its rapid growth.

Best Buy is funding the deal with cash. The motive: tapping into what the company sees as a significant opportunity as connections migrate from phones to other connectable devices such as tablets, laptops, TVs and e-readers.

Connected World Focus

The connected world concept is one into which many tech industry titans are moving. Hewlett-Packard on Monday announced additions to its portfolio of solutions and services for telecom companies that aim to help them drive business growth with better service-management quality for customers.

Last week, Cisco released its 2011 Connected World Technology Report that revealed the next generation of workers expects to use social media, mobile devices and the Internet more freely in the workplace. And the Connected World Forum last week showcased next-generation mobile apps and services.

"We are seeing growth on the mobile side of the business significantly increase and a lot of that is being driven by smartphones and smartphone revenue," said Michael Gartenberg, an analyst at Gartner. "It's not really a surprise that Best Buy would want to invest even further in this type of activity."

Shifting Europe Strategy

Best Buy Europe, meanwhile, is closing the 11 big-box pilot stores it launched in the United Kingdom. Instead, the company will focus on its installed base of about 2,500 smaller stories. Best Buy Europe launched a big-box format test in the U.K. in April 2010. However, challenging economic conditions are leading Best Buy to close them at the end of 2012.

Finally, Best Buy launched a new venture called Global Connect to expand beyond North America and Europe. Best Buy plans to build on and recreate the success of its mobile businesses by providing expertise in select markets globally. Best Buy will take a partnership approach, contracting with third parties to work with its connected products and services business on a global scale.

In a separate announcement on Monday, Best Buy said it is acquiring mindSHIFT Technologies, a managed service provider that targets small- to mid-sized businesses, for $167 million.

MindSHIFT provides cloud services, data center services and professional services to more than 5,400 clients and 25,000 managed desktops in key markets throughout the United States. The acquisition is part of the retailer's plan to accelerate growth in the SMB IT services category. The acquisition aims to complement the Geek Squad and Best Buy For Business operations.

Image credit: Best Buy.

Tell Us What You Think


Like Us on FacebookFollow Us on Twitter

Over the past decade, hospitals have been busy upgrading their systems from paper to electronic health records. Unfortunately, spending so much on EHR may have left insufficient funds for security.
The British government officially blamed Russia for waging the so-called NotPetya cyberattack that infected computers across Ukraine before spreading to systems in the U.S. and beyond.
© Copyright 2018 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.