The recent emergence of Amazon.com has caused investors, and even owners, to become skeptical about Best Buys future. With many people switching from shopping at stores to shopping online, Best Buy has felt the devastating effects, evidently showing up on their annual reports. Profits have decreased by 92% in total and their year over year sales fell by 3%. However, on the bright side, the playing field has become a little more even, with fewer states allowing internet retailers to sell their product exempt of taxes. Is this the difference that Best Buy needs to make a comeback into this fight over the electronic sales market?
I believe that Best Buy must find a competitive advantage or a point of differentiation over their competition. It has become evident that people are using Best Buy as a showroom before actually buying the product at home. Best Buy has launched a price matching approach to combat this dilemma, but is it enough to gain back market shares. It may prove to be profitable if they can revive some of their lost customers, but the price matching strategy will be a risky venture due to the decrease in revenue and increase in costs.
http://www.federalnewsradio.com/616/3076111/Best-Buy-to-match-some-rivals-online-pricing-