With Best Buy (NYSE:BBY) struggling as a transformational shift from big box retail, to online distribution, more bad news occurred today with the announcement that the CEO is stepping down due to an internal probe. Best Buy is a company that had a great model which is just becoming outdated due to the changing landscape so what they need to do to survive is adjust. They need to build a stronger online presence, and they need to reduce costs so that they can compete price wise with Amazon (NASDAQ:AMZN) and Wal Mart (NYSE:WMT). They have mostly remained profitable so strong capital allocation and strategic downsizing are going to be keys to their future success. I'm not sure if Brian Dunn was the right guy or not but the timing of this is certainly not opportune for the company.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.