Best Buy Loses Customers Due to Online-Only Competitors
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Your Local Showroom 
Best Buy has been facing a difficult issue with customers visiting their stores to view and test certain products. This is not beneficial to the store, because once the customer knows what item and model they want to purchase, they go elsewhere, specifically on the internet, to shop the best price and have it shipped to their door (Team, 2012). The following slide shows how businesses are being affected by this current situation. By: https://www.iwriteessays.com/
Direct Effects on Business We Know & Love “Amazon Showrooming – Retailer Risk Index” Bed Bath & Beyond Toys R Us Best Buy Sears
Index of 100 = Average Representation
Barnes & Noble Kohls Target PetSmart JCP Costco 105 110 115 120 125 130
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Who is Being Effected
Because Best Buy was losing sales as a result of “Showrooming,” the shareholders of the publically traded company were incurring losses. In addition, communities were losing tax revenue when their local Best Buys would have to shut down. These stores are often housed in large properties, so vacant buildings can decrease the real estate value of neighborhood as well.
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Who Else is Being Effected
There is also the human side of failing businesses. People are at risk of losing their jobs and, in turn, their livelihoods when a company is not being productive.
The personal touch is lost in an “online only” model. Some families, and especially senior citizens, do not have easy access to online-buying, which makes the loss of a brick-and-mortar store a real disadvantage.
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Price Matching to Help Retain Customers
Best Buy has decided to extend their Holiday Season event of price-matching to be a permanent occurance. This is believed to keep customers coming to their store and to help ensure they make their purchases on site.
They’ve also formed relationships with Apple and Samsung to create a new store-within-a-store model.
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It’s an Online World, Keep Up with the Technology 
Best Buy has had many complaints about its website in the past. One thing they can do to help boost sales is something they have already discussed doing, enhancing their website and making it more user friendly. The article states that Best Buy plans to invest $750 million on different areas of improvement, website being one of them.
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Promising Future 
The recent changes that Best Buy is implementing are causing some to call them “the next Home Depot,� a retailer that also recently improved their situation by making changes to their business model. The rosier outlook has been reflected in their stock price:
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potential solution(s) to resolve the issue 
In the last few years, Best Buy has been used as a perfect example of a businesses that is heavily affected by online retailers. The main challenge for Best Buy has been more competitive online sellers and the problem of “show rooming within its stores. Below are some ways to deal with this:
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Tackling problem of online stores 
The best way to combat the problem of online competition is by setting up an ecommerce website to put itself at par with the competition. The company has already considered this among its budgeted upgrade projects.
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Solution to “show Rooming”
The company has become less profitable as customers only come to the stores to look at the product features and price then buy the product online at lower prices.
The best way for the company to deal with it by making sure that the company converts show rooming customers. The company can do this by improving its customer service.
In addition, the company should expand its product mix from selling large electronics like the Television to other products with a lower warranty margins to ensure that its profitability increases(Team, 2012). By: https://www.iwriteessays.com/
References
Gara, A. (2013 , April 8). Best Buy May Be the Next Home Depot (Update 2). Retrieved from Yahoo Finance: http://finance.yahoo.com/news/best-buy-may-next-home134700769.html
Team, T. (2012, November 11). Best Buy's Earnings: Still Facing Showrooming And Product Mix Challenges. Retrieved from Forbes: http://www.forbes.com/sites/greatspeculations/2012/11/19/bestbuys-earnings-still-facing-showrooming-and-product-mixchallenges/
WINGFIELD, B. N. (2013,, FEBRUARY 27). More Retailers at Risk of Amazon ‘Showrooming’. Retrieved from New York Times: http://bits.blogs.nytimes.com/2013/02/27/more-retailers-at-risk-ofamazon-showrooming/?ref=bestbuycompany
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