Analysis Of Showrooming At Best Buy, Details The Struggles...

Introduction: The following case analysis, Showrooming at Best Buy, details the struggles of brick and mortar companies competing with online retailers. Best Buy, a major retailer of electronic goods, decides to permanently price match their online competitors. Using references from the 11th edition of business essentials, this paper will determine the pros and cons of permanent price matching, and how other companies are dealing with the increase in online shopping. The issue of showrooming will be addressed, along with an explanation of how companies are deterring customers from partaking. Through the analyzation of the case study, several recommendations will be made on how Best Buy can stay afloat despite a risky tactic in price-matching, and how companies can compete in a market dominated by online retailing. Analysis: Showrooming is the practice of shopping for a product in person, only to buy it online rather than at the store (p3). An increasing amount of shoppers are partaking in showrooming for the ability to compare prices and save money. During the 2012 holiday season, 27% of mobile phone owners used their phone while inside a store to check the price of a product elsewhere (p1). More and more shoppers were using showrooming for the convenience and deals offered by online retailers. Showrooming had a great effect on brick and mortar stores. Sales for major chains such as JC Penney and Best Buy fell, with the former having same-store sales decrease by 26 %,