Best Buy Case Study

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CFER #2
The article that I chose from the Wall Street Journal to write my report on is titled Best Buy Plays Web Hardball. The purpose of the article is to inform the reader of Best Buy’s business internet pricing plan to compete with other internet retailers and how they plan to really make an impact for their company this holiday shopping season. The target competitors that Best Buy plans to shadow in this plan are Amazon.com and Wal-Mart, although Wal-Mart is not technically considered an online shopping competitor their current plan to copy Best Buy’s plan puts them into this position. What Best Buy plans to do is to offer price matching with Amazon.com and to also offer a same day delivery service, which they are still in the planning process of. Best Buy’s current concern with their online shopping strategy is a problem of people coming to their stores and just browsing different gadgets only to leave the store and order them online for a cheaper price. In my opinion it will be hard for Best Buy to stop consumers from doing this unless they offer price matching between their online prices and in store prices because I personally would not want to pay more money for example an expensive television when I could check it out in the store just to head home and get it say ten percent cheaper.

This article is very relevant to our business policy class because this business strategy that Best Buy is implementing for the holidays will either make or break them as to whether or not they are going to be not only the leading electronics company but whether or not they are going to take over the online sales portion for online electronic purchases. I find this to be a very interesting strategy. Best Buy’s current surveys show that only one in every five persons that enter the store make their purchases in stores at that time the rest make their purchases online. The point I find interesting is that Best Buy is attempting to increase in store sales while...
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