Problem Definition
The main problem for Best Buy as a traditional offline retailer is an inability to increase sale rates compared to online stores. Secondly, the prices in the brick-and-mortar store are usually higher than in online shops due to higher operational costs. As a result, Best Buy’s has less competitive advantages in terms of pricing, and it significantly limits its ability to attract customers.
Strategic Initiatives
In order to address the pricing problem, Best Buy utilized a pricing-match initiative, which implies the lowering of prices for products that customers may find and purchase elsewhere. Since customers are now able to compare different retailers’ prices through various apps, the permanent price-matching guarantee is an excellent strategic decision because it assures buyers that they made a good purchase at the best price.
In other words, such an approach (when implemented consistently and well) adds customer values and makes the store/brand more attractive. Overall, the accent on pricing alterations seems to be a priority for Best Buy because it helps to deal with the biggest challenge it currently faces. However, the offering of exclusive products that are not available online is yet another great possibility for the store to stimulate sales but it is pivotal to make sure those goods are of high quality and demanded.
Recommendations
Along with price-matching strategy, a good way to increase Best Buy’s competitiveness in the context of quickly expanding online retail market is to focus on its value-creating capabilities and service, in particular. Direct customer interaction is one of the things that purchasers cannot get in online stores and, therefore, it may be recommended for the company to increase the quality of service (namely, purchase assistance, post-purchase support, and so forth) and make it more customer-centered.
Additionally, high-quality alternatives to items which Best Buy’s rivals offer and exclusive products should be more diversified, and it is essential to analyze consumers’ interests and preferences in order to provide all-around value for different groups of consumers.