Best Buy

Intangible assets: Best Buy’s brand, Geek Squad, and service credentials engender trust for high‑ticket tech and installation, but brand alone does not prevent price comparison. I view this at 55/100 for durability.

Scale and vendor relationships: Five suppliers accounted for roughly 55 percent of merchandise purchased in FY25, reflecting deep partnerships and vendor funding, yet also concentration risk. Scale helps on working capital and co‑marketing, but it is not unique in the face of Amazon and Walmart. Score 60/100. Switching costs: Low.

Customers can and do compare price and delivery across retailers. Membership perks and Geek Squad raise stickiness modestly. Score 30/100. Network effects: Historically minimal, but the new Best Buy Marketplace and Best Buy Ads introduce potential two‑sided dynamics as sellers and advertisers follow traffic. Too early and small to be decisive.

Score 35/100. Efficient scale: Physical store presence supports same‑day pickup and service, but the market is not capacity constrained and leases are manageable. Score 45/100. Weighted together, moat quality is modest and execution‑dependent.