Best Buy Business Analysis

Increased Internet usage has creating a troubling concept for retail and wholesalers: showrooming. Showrooming is the idea that traditional, physical stores have become simply a showroom for what consumers will actually buy online. Consumers use smart phones to compare while they shop (Baginski, 2012). By using their phones, consumers can verify information, check pricing elsewhere, access customer reviews, and find better offers. All of these activities can dissuade a customer from immediately buying a product in stores. Both wholesalers and retailers lose sales because consumers are entering stores to obtain value (knowledge, assistance, demonstrations, experience, etc.) without paying the cost (Juntti, 2013). In order to compensate for

The store environment was strategically designed to attract consumers and encourage them to make purchases. Apple products were moved up front for people to interact with. Employees demonstrate the products and educate customers; these demonstrations add value to the experience and product. The introduction of their own products allowed Best Buy to sell products cheaply while still making money. The combination of more value and lower prices draw customers back into stores where they can also view everything else on display that might peak interest. Lower prices were achieved by price matching; customers are offered the same price they find online for identical products. Best Buy did a good job of remaining relevant and drawing customers into stores. However, they also intertwined their online sales into the stores profits. Most online orders are now picked up either in store or are shipped from a store. This increases store profits even though nobody actually stepped foot inside a store (FoxBusiness,

If marketers can keep this advice in mind, both retail and wholesale will continue to thrive. Immediate gratification of in-store purchases and urgent needs will continue to draw customers in to stores. Peter Chung, a general manager of a car dealership, arms each of his employees with an iPad mini so that sellers can view the same information seen by a potential buyer. With this added tool, salesmen can control the conversation better. Chung also incorporated interactive touch screens for customers to use. These touch screens not only strategically block competitor websites, it keeps customers busy so they do not use their phones to look up information (Barkholz,