Best-Buy is an electronics store chain that is famous for its larger-than-life facilities. Best Buy originally followed the same business strategy as CostCo or Wal-Mart – have absurdly large stores so that when the customer walks in they feel as if it goes on forever. This marketing plan made the customer feel as if the store had everything. Lately though, Best Buy has reported a decline in growth, and is rethinking its business strategy, and with good reason.

In the past few years, the power of internet shopping has done away with the needs for such large stores, especially for electronics. Best Buy has become the showroom for Amazon products. A company can’t be effective if it’s just advertising another company’s products. Best Buy discussed improving their online store, but entering a market that is already dominated by a giant like Amazon could be a lost cause. The opportunity for Best Buy’s one trick pony has passed, and updating their model is essential to their survival. I think the transition to smaller stores and mobile device outlets is a step in the right direction, but I think Best Buy should re-evaluate more than just their size. Something like stronger tech support, downloadable software packages, or specialized computer parts (like newegg.com) might be a viable option for the company. Either way, the cavernous buildings need to go.

http://www.npr.org/2012/03/30/149668767/best-buy-rethinks-big-box-model