Harvard University Comparison

1.How well is BEST BUY doing compared to Amazon in 2017? ( Provide detail)

2. What were the strategic challenges facing BEST BUY in 2012?


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1. Why was Epic games so different than the competition?

Best Buy Case

1. How well is BEST BUY doing compared to Amazon in 2017? (Provide detail)

Comparing with Amazon, Best Buy had many advantages aligned with its Renew Blue strategy. In the beginning, customers were more likely to view Best Buy as showrooming and purchase goods with lower prices on Amazon online retailers (Wells & Ellsworth, 2018). In September 2017, research conducted by Loop Capital Markets indicated that Best Buy solved the problem to a large extent because the pricing differentiations were only 0.6% between Best Buy and Amazon (Wells & Ellsworth, 2018). Secondly, Best Buy’s first-quarter results of 2017 indicated a 1.4% increase in domestic sales and a 21% increase in stock price and exceeded $60 for the first time (Wells & Ellsworth, 2018). The company also achieved targeted $400 million in cost reduction to generate more gross profits (Wells & Ellsworth, 2018). Moreover, before 2017’s Thanksgiving, Google had become Best Buy’s newest vendor partner in Canada and feature Google products in the stores-within-stores way (Wells & Ellsworth, 2018). All these performances were indicated that Best Buy was getting competitive advantages in the consumer electronics market and eliminated Amazon’s online threats in 2017. Overall, 2017 was a significant year for Best Buy not only because the Renew Blue strategy had succeeded but also gained more confidence to pursue the New Blue strategy.

2. What were the strategic challenges facing BEST BUY in 2012?

There were two strategic challenges that Best Buy faced in 2012. At first, Best Buy was losing share to Amazon because Amazon encouraged customers to view products at physical Best Buy stores and purchase them at lower prices at Amazon online retailers (Wells & Ellsworth, 2018). At that time. Best Buy did not have strategies to offer competitive prices and thus lost competition with Amazon. In addition, when Hubert Joly became CEO on August 20, 2012, Best Buy’s share price dropped more than 10% because public opinions thought that Joly lacked experience in retail, and therefore, he was “unqualified” as CEO (Wells & Ellsworth, 2018). Although Joly proved to be a successful executive officer during the next several years, it was a strategic challenge for Best Buy in 2012.


Wells, J. & Ellsworth, G. (2018, May 4). Reinventing Best Buy. Harvard Business School. 

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