Best Buy is cashing in as Americans grow older
Americans are getting older and Best Buy used it as an opportunity by buying GreatCall for $800 million. GreatCall makes cellphones with big buttons and bright screens designed specifically for senior citizens. By buying GreatCall, Best Buy has been able to expand their customer base overnight.
- Best Buy is increasing its chances of attracting more elderly customers by acquiring products that are designed specifically for their population
- GreatCall says it has close to 1 million subscribers and $300 million in annual sales. The deal, expected to clear in the next few months, will be the largest in Best Buy's 52-year-history
- Best Buy is looking for opportunities to sell services and not just products and this acquisition has allowed them to expand on their now available services
- How does Best Buy's new focus on attracting senior citizens allow them to expand their brand name?
- How does Best Buy compete with Amazon in this space?
- Wat benefit do companies have in acquiring other companies rather than building their own capabilities?