How not to beat Amazon
In his first major presentation to analysts, Mr. Joly
coolly analyzed Best Buy’s strengths and weaknesses — which included
the perception that Best Buy was not the low-price leader. In one survey,
only 23 percent of respondents thought Best Buy’s prices were “lower than
others,” far behind Walmart (71 percent), Amazon (56 percent) and Target (38
percent). The result was that many shoppers were browsing in a Best Buy store,
using their phones to compare prices and then ordering online from a competitor.
Like many ideas that seem brilliant in hindsight, “the
strategy is very simple,” Mr. Joly said in 2012, soon after he took the job. “We
believe that price-competitiveness is table stakes. The way we want to win is
around the advice, convenience, service.”
By matching the lowest price and enhancing service, he
was determined to make sure that a customer who came to Best Buy as a showroom
had no reason to buy anywhere else.
Mr. Strasser attended a conference where Mr. Joly
spoke. “It jumped out at me,” Mr. Strasser said, “that the most important thing
they said was, ‘If we get someone in the store and they don’t buy, then shame on
us. If we get them in the store, they’re going to buy.’ ”
The idea is that Best Buy can match the price of Amazon and offer a better service so people go to the shops that are located at prime locations, get premium advice and pay low end prices as in Amazon. Is this going to fly? I don't think so.
First the advice i get from a seller on best buy is not independent. Second i don't believe all employees of Best Buy know a lot about the multitude of products. The advice i get from thousands of buyers/shoppers on the Amazon website is much more useful. I don't think Best Buy has a chance. Perhaps when people shop for jewelry or watches that you like to try eventually they will win over the Amazons.
The idea that you get the best advice from a sales rep than from thousand of previous buyers is a myth. Best Buy is a short to me. When i don't know but is a short and it will go to zero!
How to beat Amazon? Perhaps if you cater for non experts (me) and you go to your customer home and you help the client to set up the device/TV/Video etc.... But in this case they have to charge a lot
How to beat Amazon? Perhaps if you cater for non experts (me) and you go to your customer home and you help the client to set up the device/TV/Video etc.... But in this case they have to charge a lot
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