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Rise and Fall of Circuit City

In: Computers and Technology

Submitted By tequila
Words 675
Pages 3
This case covers the time period in Circuit City’s his
Alan McCollough to halt the sale of appliances
Schoonover to lay off 3,400 employees in 2007 sound strategic business decisions, target marketing, and customer input. points to the need for a retailer in such a competitive marketplace, with both brick and online competitors, to find its c customer value are keys to success.
This case is suitable for both undergraduate and graduate courses in Marketing and/or
Business Administration or Management, in areas where the students are stu
Business Strategy or Marketing Planning. BRIEF HISTORY Circuit City opened its doors to the public in 1949 under the name of Wards Company.
This date marked the beginning of the electronics superstore concept in the United States
(BCRC, 2009). Within 10 years, Wards became a four store chain with total sales of $1 million per year (BCRC, 2009). In 1965, the company began its expansion through the acquisition of several television and home appliance stores in the United States (BCRC, 2 came under new management and the focus shifted to consolidating the business. all unprofitable stores and invested the revenues generated in a $2 million electronics superstore
(BCRC, 2009). The store shifted Ward’s focus from home appliances to the growing consumer electronics market. It offered more than 2,000 products, including video and audio equipment and major appliances. Due to the company’s high volume sales, it was able to offer lo than its smaller competitors. In addition, the stores offered service incentives, such as home delivery and in-store repairs (BCRC, 2009)
Based on the success of its superstore model, Wards began to streamline its operations and transformed many of its small stores into full new concept, Wards opened six new stores in the Washington, D.C. area. to 7,000 square feet, featured brand name video and audio equipment, and consist in-store service capabilities. This new business strategy allowed the company to end 1979 with
$120 million in sales (BCRC, 2009)
In 1984, Wards changed its corporate name to Circuit City Stores, Inc. and became publicly traded on the New York Stock Exchange operated 113 stores and had become the leading specialty retailer of brand name consumer electronics (BCRC, 2009). The company the launch of innovative electronics products a large number of superstores in new markets, which were heavily advertised at once.
In February 1987, Circuit City mainly by the demand for VCRs, which also pushed up demand for complementary items, such as new televisions and other audio equipment core product decreased and competition from other electronics superst heated up, the company faced a difficult future.
$69.5 million in profits by 1989 (BCRC, 2009)
Circuit City concept to its strong management, customer service focus, and a good
Journal of Business Cases and Applications
Rise and fall case covers the time period in Circuit City’s history between the decision of CEO to halt the sale of appliances in 2000 and the decision of CEO
Schoonover to lay off 3,400 employees in 2007. The case also highlights the importance of sound strategic business decisions, target marketing, and customer input. Moreover, the case points to the need for a retailer in such a competitive marketplace, with both brick and online competitors, to find its competitive advantage and adhere to it. Differentiation and customer value are keys to success.
This case is suitable for both undergraduate and graduate courses in Marketing and/or
Business Administration or Management, in areas where the students are studying Marketing or
Business Strategy or Marketing Planning.
Circuit City opened its doors to the public in 1949 under the name of Wards Company.
This date marked the beginning of the electronics superstore concept in the United States
Within 10 years, Wards became a four store chain with total sales of $1 million per year (BCRC, 2009). In 1965, the company began its expansion through the acquisition of several television and home appliance stores in the United States (BCRC, 2009). came under new management and the focus shifted to consolidating the business.

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