Circuit City Analysis

Circuit City Analysis Issues At the beginning of 2007, Circuit City (CC) announced that it would dismiss over 3,400 high-salary employees (Business Week, 2008). The goal of reducing personnel is to reduce internal costs by eliminating middle senior management of CC. The main problem with this reduction is that CC loses most of the skilled employees and the customer satisfaction has dramatically declined. CC needs to make changes to reduce costs, but it can not combine staffing strategies and strategies (Dreher & Dougherty, 2001).

The company website I decided to evaluate was Circuit City. Circuit City is a retail store offering a wide range of brands including home appliances, PCs, software, movies, music, games. It is a major competitor in the electronic equipment market, owns a real store and uses the site to keep promoting online sales. The Circuit City website www.circuitcity.com provides potential customers with a wide range of product information, direct purchase of goods, real-time availability of products in stores, and the ability to order online and pick up at stores I will.

Since the 1970's, Circuit City has prospered by selling home appliances at supermarkets. A wide choice, a professional sales support, and a store that does not negotiate with customers. In 1993, Circuit City announced that it will open used car chain CarMax. This surprised the investors. The company believes that the used car industry in the 1990s was very similar to the electronic retail environment in the 1970s. Suspicious mothers and popular distributors dominate the industry and consumers can raise funds for complex and large durable purchases. Circuit City executives believe that the success formula of electronics retailing works clearly in a similar environment

In the highly competitive retail industry, Circuit City recognizes the need to expand its reputation. The focus of the company 's e - commerce strategy is to enhance the presence in the industry by integrating retailers and electronic supermarkets to enhance competitiveness over competitors. This is brought about in the form of "quick pick-up and delivery" that enables customers to gather goods from nearby shops. Strategically, this approach expands the global reach of Circuit City and enhances support for local affiliates. With this e-commerce application, Circuit City can increase competitiveness and maintain a high yield relationship with customers, suppliers, and employees.