Circuit City Case StudyCircuit City Case Study

CIS 429CIS 429

ByBy

Ben WorthingtonBen Worthington

Circuit City HistoryCircuit City History

1949 Richmond, Virginia1949 Richmond, Virginia

Opened by Samuel S. WurtzelOpened by Samuel S. Wurtzel

Original name was “WARDS”Original name was “WARDS”

Changed name to Circuit City in 1984Changed name to Circuit City in 1984

567 Stores in 2008567 Stores in 2008

Chaining CircuitsChaining Circuits

Praised for 1982-1999 success by Jim Praised for 1982-1999 success by Jim CollinsCollins

2001 Best Buy becomes #1 consumer 2001 Best Buy becomes #1 consumer electronics retailerelectronics retailer

Best Buy 608 stores/$25 billion revenuesBest Buy 608 stores/$25 billion revenues

Circuit City 599 stores/$9.7 billion Circuit City 599 stores/$9.7 billion revenuesrevenues

Catching Best BuyCatching Best Buy

Customer-focused ideasCustomer-focused ideas

Hired Philip Schooner as President in Hired Philip Schooner as President in 2004 from Best Buy2004 from Best Buy

Upgrading POS systemUpgrading POS system

Bottom-Up ChangesBottom-Up Changes

Changed pay structureChanged pay structure

Store RelocationStore Relocation

Improved customer experience by location Improved customer experience by location in storein store

End of aisle displays End of aisle displays

Question 1Question 1

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

Question 2Question 2

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

Question 3Question 3

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

Question 4Question 4

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

Current InformationCurrent Information

Buyer needed by January 10, 2009 – None Buyer needed by January 10, 2009 – None Found Found (Felberbaum, Michael (March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press. (Felberbaum, Michael (March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press.

http://www.google.com/hostednews/ap/article/ALeqM5irmWZmMlki7isG4T9NmoHzSlAMJwD97173GG0.Retrieved on 2009-04-27.)http://www.google.com/hostednews/ap/article/ALeqM5irmWZmMlki7isG4T9NmoHzSlAMJwD97173GG0.Retrieved on 2009-04-27.)

Bankruptcy declared January 16, 2009 Bankruptcy declared January 16, 2009 (Felberbaum, Michael (Felberbaum, Michael

(March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press. (March 19, 2009). "Circuit City cuts execs, reduces board". Associated Press. http://www.google.com/hostednews/ap/article/ALeqM5irmWZmMlki7isG4T9NmoHzSlAMJwD97173GG0.Retrieved on 2009-04-27.)http://www.google.com/hostednews/ap/article/ALeqM5irmWZmMlki7isG4T9NmoHzSlAMJwD97173GG0.Retrieved on 2009-04-27.)

30,000 jobs lost 30,000 jobs lost (Bagley, Chris (16 January 2009). "EMPLOYMENT: Bankruptcy to kill 150 jobs at local (Bagley, Chris (16 January 2009). "EMPLOYMENT: Bankruptcy to kill 150 jobs at local

Circuit City stores". Circuit City stores". The North County TimesThe North County Times (Escondido, California, Fallbrook, California, Oceanside, California, and Temecula, (Escondido, California, Fallbrook, California, Oceanside, California, and Temecula, California: Lee Enterprises). http://www.nctimes.com/articles/2009/01/16/business/zf4a9e3ba60c777e588257540006218d9.txt. Retrieved California: Lee Enterprises). http://www.nctimes.com/articles/2009/01/16/business/zf4a9e3ba60c777e588257540006218d9.txt. Retrieved on 24 January 2009.)on 24 January 2009.)