Submitted By: Group 8_Sec B

• Sriparna Banerjee (P18005)

• Tafsir Alam (P18112)
• Ajay Kumar (P18051)
• Priyank Pawar (P18028)

Best Buy
 Background- 5C Framework
Company Competition Consumer
• Online Retailer: Amazon, e-bay • Customers in United States,
• Best Buy: World’s largest
• Brick and Mortar: Walmart, Canada & Mexico
electronic retailers.
Target, Old Navy, J.C.Penney, and
• 2000 stores and over 160,000
Crate & Barrel
employees
• Products: Electronics,
Computers and entertainment
products Context Collaborator
• Despite the increase in store No collaborator identified from
traffic sales had fallen down by the case facts.
over 4%.
• Post 2008: Online shopping
increased
• Post 2012: Store traffic
increased due to Apps like
Shopkick yet sales decreasing
because of showrooming.
 Decision Could Best Buy afford to sell its products by matching price of
Problem online retailers despite having higher operating costs ?

1. Maintain the status quo

Alternatives
2. Go Online along with demo stores
 Evaluation of Alternatives

Criteria Maintain Status Quo Online along with demo stores

Operational cost Same Will decrease with the reduction in
the no of stores
Profitability Slight increase or constant With increase due to decrease in
operating cost
Customer satisfaction Will be higher Will be a bit less due to no sales
representative
Competitive advantage Will be less Higher competitive advantage as it
will be an integration of online as well
as offline retailer
 Recommendations

 Online marketplace model with only demo pieces in showroom

 Having its own mobile app for better customer experience
 Reducing brick and mortar stores and employees, operational cost will reduce.
 The demo stores will have less stock
 Instant gratification- few hours delivery when ordered online
 Store within a store concept- spaces paid for by brands