Case Analysis

Showrooming at Best Buy

Submitted by Group A10 –

Anubhav Chauhan
Mayank Agarwal
Monika Patel
Raghuraj Rathore
Rohan Joseph George
Yatish Sachdev
 Analyzing Best Buy’s Operating Environment using the 5C’s framework

C C C C C

Company Customer Competition Collaborators Context

• Customer • Online retailers- • Exclusive • MAP & RPM - legal

• Consumer
Electronics Amazon products from contracts to fix
Electronics Retailer
Segment  Lower overhead vendors minimum price
 Bargaining power –
 Technology Savvy Costs • Manufacturers – • Rising trend in
2000 stores
 Memberships minimum price Showrooming
 Brand Image
• Holiday Shoppers eliminating policy (37%)
 Holiday Shopping
 Price sensitive shipping costs and • Third party app • Rising share of
destination
inspiring loyalty - developers – online retailers
 Lowest price
prime Shopkick (45% from 2008-
guaranteed Price
• Price comparison 12)
matching policy
apps - Flow • Adoption of mobile
technology
Decision
Alternatives
Problem
Best Buy has adopted the
Filler

permanent price matching

policy to guarantee the lowers
price found on online retailers
or any other brick and mortar Framework Used
store. Filler

With high overhead and

operational costs, can Best
Buy afford to sell at prices as
low as those of online Filler
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retailers?

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Thank you