5 C Analysis

COMPANY CUSTOMERS COMPETITORS COLLABORATORS CONTEXT

• Best Buy – • People looking for • Online retailers • Manufacturers • Popularity of

Largest brick and electronic like Amazon • Shopkick online retailers,
mortar electronics appliances and • Price matching • Celebrities price matching
retailer with good gadgets the world apps • and shopping apps
Web Designers
brand image and over as Best Buy • Direct to • Increased
technical services had global presence consumers customer visits
manufacturers like • Decreased sales
Apple
Problem Statement
 Could Best Buy afford to sell its products at the price point of online retailer?

Alternatives
• Start adding new product categories like toys and jewelry etc. with the
earlier pricing model
• Merger of Amazon and Best Buy where price matching can be done at
distribution channel
Evaluation of Alternatives

Criteria for Evaluation 1st 2nd

Alternative Alternative
Competitive advantage of Best buy Moderate High

Brand Identity elevation High -

Profitability to stakeholders Moderate High

Investment required by Best Buy Moderate Low

Recommended Action
 Partner with brands who sell through their outlets only and allow them to install stores through
Retail Partnership
 Start selling Private label brands (or own brand labels) products with its own packing, but
manufactured by a third party
 Remodeling of stores along with Online platform for enhancing customer experience
 Start focusing on customer experience rather than only pricing. e.g. food courts, child’s corner
etc.
 To cut cost lease out extra space
 Advertising Promotional offers for In store flash sale for bulk buying
 Start referral program to maximize customer engagement
 Build a same day delivery system within the same city
Action plan for negated alternative

 New identity formulation by involvement and engagement

 Perform Due Diligence
 Negotiate a Definitive Agreement
 Access of Best Buy Distribution channel by Amazon
 Agreement of Price Matching
 Access of Amazon distribution system by Best Buy
 Cascading the process by creating ownership
 Execute Transaction
 Implement Transaction and Monitor Ongoing Performance
Thank You