ANALYSIS

1. Improve the in store experience:

Pros: Focus will be in providing excellent customer experience. Employees will be trained to provide
product information to both online and offline users, hence making the product information easily
accessible. By matching customer needs to products availability , Best buy will be able to fill gap
between the demand and supply.

Improve the representation and service of millenials in both online and offline channels

Store within store(Re-balancing) would create incremental revenue for best buy. More customers will
visit the store because of the presence of prominent brands within the store.

Increase in sales would be 1-2% by managing products and by leasing stores as well as charging margin
per incremental revenue.

Cons: High training cost of employees and cost of maintaining frequent database. (190 million)

2. Enhancing ownership experience

Pros: Would create a price category and hence can cater to each category (wrt price points) of users. An
incremental revenue of 1125+1150+575(Platinum, Gold and Silver) per customer will be generated.
(Total revenue = 1 billion)

Cons: Installation repair and insurance cost. (approx 200 million)

3. Innovating on the business model

Pros: Useful for customers with bad credit as leasing is not dependent on credit checks. Customers who
cannot pay the fee of electronic appliances upfront will also be attracted to this model. This will be
specially advantageous in case of millenials where most of them are price sensitive.

Cons: Phones will lost to default

RECOMMENDATION

Best Buy should focus on strengthening its customer service . Millennials looks for brand value rather
than loyalty hence, product matching with customers to ease the process of buying for millenials can be
advantageous. Millenials have a general perception that Best Buy has costly assortment of products (as
compared to Amazon), hence interacting with employees having product expertise(by creating in store
experience) would help them understand their needs better.

Whatever the offline stores are losing in revenue can be covered by leasing the stores(to brands) within
the Best Buy store. Additionally, it would also improve the customer experience.