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Case
-
Reference no. 9-515-019
Prize winner
Subject category: Marketing
Published by:
Harvard Business Publishing (2014)
Version:
18 December 2015
Revision date:
13-Jan-2016
Length:
15 pages
Data source:
Published sources

Abstract

Best Buy is a consumer electronics retailer with nearly 2,000 stores worldwide. In 2012, the rising popularity of price-matching apps for mobile phones made price differences between retailers transparent, online and offline. Shoppers' desire to test electronics first-hand before purchase drove them to use Best Buy stores as 'showrooms' to see new products and then search for better deals on their smartphones. This case examines how brick-and-mortar stores battle showrooming through changes in product assortment, the development of apps, loyalty programs and changes in pricing policy. The case asks whether Best Buy can survive by permanently price-matching their online-only competitors, primarily Amazon, despite having higher costs.

Topics

Marketing; Strategy; Competition; Prices; Consumer behavior; Retail
Size:
> 1 billion, Fortune 500
Other setting(s):
2009-2013

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