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Showrooming-Best Buy Case FINAL Eng

Amazon has helped drive consumers from traditional stores to online shopping through convenient mobile apps and fast, free delivery options. This prompted other retailers like Best Buy to match online prices and introduce their own mobile payment and pickup options to better compete. While e-commerce grew, many customers still preferred to see electronics in person before purchasing, so physical stores remained important.
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0% found this document useful (0 votes)
594 views3 pages

Showrooming-Best Buy Case FINAL Eng

Amazon has helped drive consumers from traditional stores to online shopping through convenient mobile apps and fast, free delivery options. This prompted other retailers like Best Buy to match online prices and introduce their own mobile payment and pickup options to better compete. While e-commerce grew, many customers still preferred to see electronics in person before purchasing, so physical stores remained important.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Most Retailera have offered weekly and weekend actions offering a special discount.

Amazon and
ebay have made an application that they have offered to easily find the actions that will satisfy them.
This move has made it easy and easy to find all the actions in one place. During 2012 27% of mobile
users was using the application. This move has caused many retailar to pull new moves in business.
So the Macys changed their stores allowing consumers to pay their bills via cell phone and tablet
time the economic crisis online store in the USA amounted to a maximum of 5%, while most of the
sales were carried out via offline sales. The unemployment rate was high, which resulted in
consumers spending less and saving more. The Online shopping period between 2008 and 2012 was
increased by 42%. At the time of the most famous Black Friday activity, American consumers spent a
record 1.4 billion.

Amazon is one of the companies that has in a successful way dragged consumers from traditional
shops to online stores. The extra move that was built by the Amazon was to give an additional 15%
discount for each downloaded application. At 2014, the Amazon introduced a new, better application
flow. Certainly one of Amazon's main moves is the introduction that for all orders above 79 dollars
consumers can get a free delivery within 2 days. Which caused 2009 18% of consumers to browse the
products, while 2011 30% of consumers were inspecting, while Google used 13%.

Amazon has been a starter in the online shopping market. Thus, other companies as a redlaser,
Loopot, shopkick have introduced many advantages that allow their consumers to buy more easily.
As for example, scanning barcodes makes it easier to find products in stores, GPS locator allows you
to locate product in stores and discounts.

Consumers quickly accepted a new way of shopping through mobile applications. By the end of 2012,
37% of consumers accepted this way. For reasons because showrooming has had better discounts,
see the product before buying, and see if there are products in stock. All of this led to a combination
of psychological aspects and prices did not have to be generally concerned about payment of
deliveries. One way to get customers is to have a loyalty program where some customers gave and 1-
2% return on the card.

Best buy je uveo novu politiku uspoređujući cijene na amazonu i drugim stranicama koja je razvijana
u koracima. U 2012 best buy promised to match prices from nearby brick and mortar stores. Ovaj
način je doveo da se uvede price matching. After 2012’s disappointing sales results and another
same-store sales drop of 1.1% in the fourth quarter, best buy took price matching one step further.
In early 2013, best buy announced it would make price matching permanent.

Despite the growth of e-commerce, customers who purchased electronics items still preferred to visit
physical stores to look into the new electronic items.
Swot

Strenght, Uni

 Lower prices that allow customers to find the best price on the market, and Certainly
advantages over other competitors.
 The power of a brand that is definitely recognized by many consumers
 Različiti portfolio proizvoda koji omogučuje potrošačima da pronađu sve za sebe i svoju
rodbinu. This has enabled bestbuy to build diverse revenue source and profit mix.
 Internet retailer estimated that best buy’s online sales were growing at a rate of 16.7% a year
in march 2015. Best buy generated around $3.54 billion from its online sales.

Weeknes

 Economy crises, global instability – we are now in period when global economy reach the
top, so we can predict that everything will go down
 The high cost that the company invests in the entire marketing to maintain its leadership
position.
 Organization culture – it seems that organization culture of bestbuy is still dominated by turf
wars within various divisions, leading to managers keeping information close to their chests
 Implementation of technology in processes – even though bestbuy has integrated technology
in the backend processes still it’s not able to harness the power of technology in the front-
end processes.

Opportunities

 Reducing cost of market entry and marketing into international markets – globalization along
with boom in digital marketing and social media has considerably reduced the risks of market
entry and marketing in international market
 Increase the percentage of purchases through online stores that are more and more popular
from year to year and are increasingly selling.
 New generations that increasingly use mobile phones and applications and spend less time in
stores.

Threats

 Aggressive discounting of electronics by online retailers. Companies such as amazon.com and


ebay are increasingly undercutting best buy’s prices.

 New pages that offer other sales methods. The auction sale gained more and more
popularity in youth or users of online trade.

 Consumers are asked to feel the goods before they buy themselves.

 Competition more and more on the market can easily copy the work model

Solution proposal

Best buy must definitely continue the big investment in communicating and promoting your trade
with consumers. With the story of marketing they must definitely continue investing in developing
concepts that will attract consumers. For example, to introduce free shipping for orders, develop
easier application usage, enable cryptocurrency payment. . In order to attract the younger audience,
I would recommend organizing events such as gaming days, bringing in famous gamers as narrators
and allowing the customers to compete in the store. It is also good that Best Buy invests in the
environment, to build the image of a socially responsible company that cares for the environment
and will develop this concept to enable it to attract more and more consumers. Consumers like to be
attracted to interesting discounts, or they prefer a loyalty program that rewards them and gives them
a sense of gratitude.

Technology development is very important that best Buy track trends or be a leader in online
shopping.

Conclusion

Best Buy is a leader in online stores that has established itself in front of all online retailers. The
development of new concepts will certainly attract a lot of new consumers. Certainly the focus must
be made towards the young who are the largest consumers and users of this technology.

New payment methods, user friendly applications, creating their own needs will in the future
increasingly more users look for this and who will be the first of the online traders to offer this will be
the leader.

Best Buy is certainly on the right track to give all this one day to the beneficiaries of online purchases.

All told, i believe bestbuy is moving in the right direction.

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