New Technologies

Muktak Tripathi

BA 3103/ G. A. Winfield

Critical Analysis Assignment #1

The emergence of new technologies has proved to be problematic for mega electronic retailers such as Best Buy, Circuit City and PC Richards. In the recent times, Circuit City declared bankruptcy and the PC Richards changed their product mix to specialize in computers only, but now it's the Best Buy that seems to sip down the marsh. The brick and mortar giant Best Buy has recently invested and established their e-commerce business but despite the effort, Best seem to underachieve. There are three primary reasons for the Best Buy's decline in revenue and market share that are as follows: Rise of Ecommerce, poor store ambiance, and negativity in corporate culture.

The rise of ecommerce business has a significant effect on the Best Buy's decline and Ecommerce giant, Amazon, was able to exploit the technological advantage that lacked in Best Buy. The key reason for Amazon's success is the convenience it provided to its customer using high-speed superior applications that is virtually used on any platform. Some other reasons for the success of Ecommerce are superior customer service, faster delivery time, and information provide through embedded videos as well as live chat to assist customers. In short, the virtual retailers have used these advantages along with lower prices, customer reviews, and more choices of products for the customers. Therefore, the Ecommerce businesses have exploited the advantages of traditional brick and mortar stores and used their technological resources to gain vast market share from stores such as Best Buy.

Best Buy fails to learn and adapt the essence of retail industry from the experienced retailers specializing in the same industry such as Apple, Sony Style, and Microsoft stores. These companies have adapted technology and have created an invited ambiance to its customers. The warm lightening, eye level display, informed employees to navigate customers to right products and fast, but thorough shopping experience create a value for their customers. Although, Best Buy fails to understand the concept of creating a welcoming atmosphere for its customers and rather they focus on salesmanship strategy that annoys many of its customers forcing them to shop elsewhere. In the modern world, the chief element in creating right ambience is to adapt the new technologies to understand the customer and develop the brand based upon their needs. Hence, Best Buy tends to resist its traditional layouts, ambience and old strategies gives