Circuit City Essay

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Circuit City The development of Circuit city in the 1980s and 1990s in United States is the fastest growing electrical store, but they rest on its old-fashioned management, ignoring the customers and the employees' ideas have led to their death. In the 2008, financial tsunami, circuit city received heavy setback, and then they declared bankruptcy in 2009. It is not an accidental phenomenon for Circuit city, because they lack of long-term strategic management, they just care about what they can get in a short time. The main problem for Circuit city is their old-fashioned methods of management. In the period 1980s to 1990s, circuit city is the most prosperous electrical store, their store’s location is far away from the city, and most of them are located in the remote areas, which led people need to spend more time on the road to go to the store. In the 1980s, the circuit city is a unique large appliances sales market, so people will not mind if it takes a long time to get there, just as people today will use a longer time arrived, like Ikea, but in today's market development of competition, circuit city’s competitive advantage does not exist, although they adjust their way of doing business, but the location has not changed, and this is a big problem for their future development. Located in the remote area will spend them less money on the renting fee rather than located in the central area. Ignoring the growth strength of the mass merchandising discounter, for example, Wal-Mart, Costco, BJ's growing strength is also a problem for circuit city’s development. Most of today’s retail stores have the same management method, and they have cheaper price than Circuit city. Like Wal-Mart, it will just cost you 5minutes to go there and you can find the store almost everywhere. Another problem for Circuit City is the inventory management in Richmond.

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