How is Best Buy's business model still surviving despite the entrance of Amazon?

Yes indeed as Sandra mentioned Best Buy is certainly a very interesting case to analyse! While it may appear Amazon's business model was threatening Best Buy in 2012, Best Buy new CEO Hubert Joly took a page out of famous show- Undercover Boss, visiting Best Buy stores and working there for a week to speak directly to front line employees. Based off their feedback, he fixed broken systems like internal search engines, restored a beloved employee discount program, invested heavily into regular employee training.

Moreover Joly knew customers used Best Buy to do showrooming, therefore he used that practice to his advantage by instituting a price match system. And as Sandra said they charged large electronic companies to feature their products at these "showrooms", opening a new revenue stream.

Joly further built on their ability to connect with customers and starting an in-home advisor program. Best Buy could send consultants to the privacy of homes to offer advice and help you decide if you would like to purchase. Advisors are encouraged to establish long term relationships rather than close sales. Advisors are paid an annual salary and are told to "be comfortable not closing deals by day end"

Ultimately, Joly understood he didnt need to beat Amazon to survive, but merely coexist alongside, and has proven exactly his point from its recent expectations beat.

Best buy managed to cut its debt load by half and increased its cash on hand by almost threefold. However, the success of Best Buy's survival should be credited to the CEO's ability to adapt to changing circumstances. The CEO of best buy, Hubert Joly recognized the interplay between physical stores and online sales in building customer loyalty. He turned the stores into showrooms for the company's wares, while completely overhauling Best Buy's shipping infrastructure. As the warehouse systems and procedures were revamped, the same-day delivery massively expanded. Apart from promising to match Amazon prices, Best Buy also brought brands like Amazon, Apple and Samsung in, allowing them to open boutique mini-showrooms in the stores. This gives these brands the opportunity to save money from opening their own stores and allow Best Buy to piggy-bag on their brand success. Joly also transformed the culture by avoiding layoffs as much as possible. By reinstating a generous employee discount program, worker turnover fell from 50% to 30%.