go-Digital Blog on Digital Marketing

Best Buy / Circuit City stores physically touching each other

this is on Fifth Avenue between 43rd and 44th streets in New York City.

In thinking about retail … this helps illustrate the tremendous challenges they face.

- online switching costs are pretty much zero — just type another URL; these two stores are physically touching — just walk next door

- they carry much of the same inventory from plasma TVs to computers to home stereo equipment to software, CDs, DVDs, etc.

- they both sell Apple iPods; consumers have already decided to buy an iPod for Christmas (for some reason), which store do they walk into? what differentiates the store with the blue awning from the one with silver letters? they both have “black friday” discounts but the price ended up to be about $1 from each other; both have geeks on staff, one called Geek Squad and the other Fire Dog

- and then there’s Amazon.com which is tax free and offers free 2nd day shipping.

THIS is a challenging marketing problem for retailers such as the ones pictured!

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