Continuous renewal, and how Best Buy did it

PurposeAs an alternative to the two extremes of protecting and extending the core business versus transforming it, the article aims to propose two other renewal strategies, “leverage” and “build,” that together provide a pathway for continuous renewal.Design/methodology/approachThis article looks at the case of Best Buy, which has progressively used “leverage” and “build” strategies to modify its competence platform from an early emphasis on operational excellence to complement it with modularity, flexibility and customer centricity. Correspondingly, its market reach has grown from Minnesota to all of North America with recent forays into China.FindingsWhen the firm's performance did not meet expectations, top management did not focus merely on better execution; rather it questioned if the firm's vision needed to be revised. Best Buy's renewal journey is guided by a continuous re‐visioning of the company, or in Best Buy's jargon continuous re‐“Concept”ualization of the company. Best Buy has transformed itself via six concepts, Concepts I‐VII, with the change from one to the next accelerating over the years.Practical implicationsThe article explains how a firm can use these two renewal strategies to perform a dramatic transformation, but through an evolutionary process not a revolutionary one.Originality/valueThe case illustrates the implementation of “leverage” and “build” strategies that together provide a pathway for continuous renewal.