Business Strategies of Circuit City Samples †MyAssignmenthelp.com

Question: Discuss about the Business Strategies of Circuit City. Answer: Introduction Circuit City which was built in the year 1949 by Samuel S. Wurtzel was launched for the first time in Richmond in Virginia under the name Wards Company. The company at first opened as a retail store that started its business by marketing television and home appliances. In the year 1959, the company launched its first four stores and became public in the year 1961 and earned a revenue of $246 million in the year 1983 (Campbell 2014). However, the company struggled to run its business by the end of 2008 when it closes its 155 stores. The last nail on the coffin was struck when in the year 2009, the company ultimately decided the liquidation of its assets by closing 567 stores where 34,000 people used to work. The purpose of this study is to investigate the reasons behind the failure of the company. This suggests that the report will discuss the business strategies that were implemented by the company. The scope of the study is to discuss and implement the strategies that will help the company to perform and compete efficiently in the long run. Analysis Circuit city was an electrical appliance company that first launched in the year 1949 by Samuel S. Wurtzel in the Richmond city of Virginia. The company at first came up as retail store under the name Wards and started its business by selling television and electrical home appliances. In the year 1959, the company launched its first four stores and became public in the year 1961 and earned a revenue of $246 million in the year 1983 (Kim, and Min, 2015). Gradually, within the year 1969 to 1982, the company started growing by purchasing quite a few retailers of electronic appliances across the United States and changed its name from Wards to Circuit City which enabled the company to enroll its name in the New York Stock Exchange. The revenue of the company continued to increase reaching $2 billion in the year 1990 and the company launched a subsidiary store of name CarMax, that stared selling used vehicles in the year 1993 (Bertuglia, Bianchi and Mela 2012). In the year 2002, the compa ny declared that in order to focus completely on the consumer electronics retails, the company would sell its subsidiary CarMax. Till this the situations were stable, but by the late 2008, the company were in a state of serious trouble for which its 155 stores were closed. The company ultimately shut down in the year 16th January 2009 when it closed down its 567 stores in which 34000 employees used to work (Hava et al. 2014). The main reason for the failure of the company that has been cited by the CEO is the companys incompetent business strategies. According to the CEO of the company the business strategies which were formed during the launching of the company was not efficient enough to compete with the business models of the modern companys like Best Buy (Rothaermel 2015). The main focus of Circuit City was on the short-term profit of the company while the focus of Best Buy was on the business strategies of the company. Conclusion The report concludes by stating the major differences of business strategies between Circuit City and Best Buy. While Circuit City paid attention to the short term profit of the company, Best Buy focused on the sales from its newly created stores. Thus, the purpose of the research clearly points out the business strategies that should have been executed by Circuit City to compete effectively with Best Buy. References Bertuglia, C.S., Bianchi, G. and Mela, A. eds., 2012.The city and its sciences. Springer Science Business Media. Campbell, T.A., 2014. What could have been done? Circuit city: A case study ofmanagement and employee performance failure.Performance Improvement,53(4), pp.16-23. Hava, A., Qin, J., Bernstein, J.B. and Bot, Y., 2013, January. Integrated circuit reliability prediction based on physics-of-failure models in conjunction with field study. InReliability and Maintainability Symposium (RAMS), 2013 Proceedings-Annual (pp. 1-6). IEEE. Kim, S.K. and Min, S., 2015. Business model innovation performance: When does adding a new business model benefit an incumbent?Strategic Entrepreneurship Journal,9(1), pp.34-57. Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.