Circuit City Case Study CIS 429 By Ben Worthington

Circuit City History 1949 Richmond, Virginia Opened by Samuel S. Wurtzel Original name was “WARDS” Changed name to Circuit City in Stores in 2008

Chaining Circuits Praised for success by Jim Collins 2001 Best Buy becomes #1 consumer electronics retailer Best Buy 608 stores/$25 billion revenues Circuit City 599 stores/$9.7 billion revenues

Catching Best Buy Customer-focused ideas Hired Philip Schooner as President in 2004 from Best Buy Upgrading POS system

Bottom-Up Changes Changed pay structure Store Relocation Improved customer experience by location in store End of aisle displays

Question 1 How would anticipating Best Buy’s growth have helped Circuit City remain as an industry leader?

Question 2 Why is keeping up with technology critical to a global company such as circuit city?

Question 3 Highlight some of the potential risks facing Circuit City’s new business model.

Question 4 Why is Circuit City benefiting from implementing strategic product placement techniques?

Current Information Buyer needed by January 10, 2009 – None Found (Felberbaum, Michael (March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press. on ) Bankruptcy declared January 16, 2009 (Felberbaum, Michael (March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press. on ) 30,000 jobs lost (Bagley, Chris (16 January 2009). "EMPLOYMENT: Bankruptcy to kill 150 jobs at local Circuit City stores". The North County Times (Escondido, California, Fallbrook, California, Oceanside, California, and Temecula, California: Lee Enterprises). Retrieved on 24 January 2009.)