Best Buy ’s appliances sector implements a business innovation that strives to help customers choose between different brands of items that are more energy efficient to help the community protect the environment. They mostly sell ENERGY STAR certified appliances for homes to help customers save on their monthly electricity bill and consume less power when on standby or in use. Best Buy’s business model strives to ease the minds of the customer. They implement their services to help customers decide which product would suit their needs more and provide installation services for a fair price.
Rutgers Business School
When the ENERGY STAR Program was released in 1992, the goal was to standardize and save on the amount of electricity consumed from “refrigerators to TVs.” The innovation emerged into the company when they worked with appliance companies to implement the ENERGY STAR standards within their products so they can be marketed and sold through Best Buy. Best Buy has worked to grow customers' knowledge about what ENERGY STAR is. They work to raise the awareness of the certification and have recently been acknowledged for having an 88 percent success rate. Best Buy’s number one goal is to better the community and help customers save on bills by reducing monthly electricity use through the strict restrictions required to be considered ENERGY STAR certified.
Through this, the ENERGY STAR innovation helps the community grow steadily by reducing the consumption of electricity and giving more homes the financial leeway to develop economically. Furthermore, they expand efficiently because there are no downsides to purchasing these products unless the consumer does not have the capital in hand; in that case, Best Buy offers a payment plan to help homes in any condition possible. The innovation helps save on finances anyways, so many homes can take the investment at hand to save more money in the long run. This efficiency can be used as a marketing status for Best Buy to use to give trust to consumers so they can take the next step towards saving on energy consumption.
Hubert Joly, the CEO of Best Buy, is the one that started the movement behind the firm's commitment to the environment and other progressive practices. Best Buy was named No. 1 Most Sustainable Company for 2019, and this is due to Hubert Jolly pushing for environmental protection: “Sustainability is embedded in everything we do.” With climate change being a very hot topic in the 21st century, all of the employees were sent an email that informed them about the new sustainability initiative around 2.5 years ago. The employees are continually reminded of the company’s mission to help the environment. Andrew Loanzon stated about the impact of the sustainability movement in terms of sales tactics, “When customers come in looking for appliances, we usually steer them towards the ENERGY STAR certified products as they are attractive in terms of cost-savings and environmental appeal.”
The environmentally friendly initiative and sale of ENERGY STAR products can be linked to UN Sustainable Development Goal #12, Responsible Consumption and Production, because of the common goal to make sure energy and natural resources are used at an appropriate level that does not harm the world. There was no funding involved for the movement but instead acquiring suppliers/manufacturers that would provide ENERGY STAR certified products. This was based on the cultural outlook on being environmentally friendly and the CEO's wish to pursue selling cleaner appliances.
The short-term effects of the innovation include more disposable income for the customers who are buying these ENERGY STAR certified products and also more revenue for Best Buy itself because more people will buy their products if people start spreading the word. As for long-term effects, these ENERGY STAR certified products have significantly impacted the environment by reducing energy use, which greatly reduces unnecessary pollution. In a recent article about Best Buy’s ENERGY STAR certified products by Laura Bishop, she stated, “In fact, since 2009, through the purchase of ENERGY STAR products, our customers have realized more than $662 million in utility savings and avoided more than 9 billion pounds of CO2” (“Best Buy Named ENERGY STAR Partner of the Year for Fourth Year”). Climate change is a genuine phenomenon, and although there is a lot of pollution in the air, these products are a step closer to a healthier lifestyle for everyone. Another significant long-term effect is the fact that it is saving a lot of energy, and energy is a minimal resource; the more we can save, the better. Through the widespread use of these products, we can save a lot of energy overall, and with more and more people buying the products, we will only be able to save more energy, save more money, and avoid unnecessary CO2 in the environment.
The sustainability innovation has helped Best Buy grow as a company, and further benefit their customers and the environment. Best Buy has been going through a rebuild since their struggles around 2010. Their initiative "Renew Blue" is all about bringing back Best Buy and rejuvenating their brand and company. The sustainability effort by Best Buy and the collaboration with ENERGY STAR certified products has allowed Best Buy to benefit not only themselves but also their customers and community. Customers love hearing about the products and Best Buy's sustainability. This allows Best Buy to drive more revenue and increase profits through these sales. This also motivates thousands of employees. Evan Borros, a full-time appliance employee, talked about how proud he is of the company he works for and how it drives him. This all comes together to help bring back Best Buy's brand name and their reputation with their communities and customers. Customers trust the ENERGY STAR certified brand, and Best Buy could one day be the country's leading force in sustainability.
Best Buy’s appliance sector has a mission to achieve through their company. Best Buy’s innovation of focusing on ENERGY STAR certified products was meant to help spread awareness of the products and help the community save on electricity use and overall save economically throughout the years. Furthermore, their purpose is to market their products to the community to help the city grow as a whole by implementing the growth in technology to help save in utility costs. Best Buy promotes ENERGY STAR appliances to lower the cost of living significantly and improve the environment by restricting the release of CO2 into our atmosphere. They are working to protect the environment as well as helping consumers benefit from their products as much as possible.
The qualitative impact of the ENERGY STAR certified products is that they have created a much cleaner environment and reduced adverse environmental effects in the communities that Best Buy serves. There has been a significant decrease in CO2 in the atmosphere, which has created a much healthier environment surrounding us. The use of ENERGY STAR certified products has also significantly reduced energy usage, which once again creates a much cleaner environment because people can avoid unnecessary pollution. These products have also helped people save a lot of money because the less energy they are using, the less it costs for the products. Therefore, using these ENERGY STAR certified products has had benefits such as the positive economic impact it has on all the people using these products. It will help save a lot of money for people and help protect the environment from further pollution so that we can live in a healthy environment.
Andrew Loanzon, Appliance Manager
Evan Borros, Sales Consultant
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Manalapan, New Jersey, US
Business Website: https://www.bestbuy.com/
Year Founded: 1963
Number of Employees: 51 to 200
Best Buy has a huge selection of name-brand kitchen, laundry, and home appliances that deliver performance, value, and style. New appliances feature the latest energy-saving technology. The company ranks highest in customer satisfaction among the largest appliance retailers.