Monk Case Essay

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Circuit City tested new ventures so that distracted executives from the core business. They made the mistake of not testing hybrid concepts. (没有测试混合概念)explored a variety of businesses to get into (多种业务去进入) By the mid-1990s, Circuit City ventured into creating and selling a digital video disc rental system called Divx. The chain poured more than $200 million into the venture before pulling the plug in 1999. Divx couldn't get the necessary support from Hollywood studios and from additional retailers to make it a viable business. but scrubbed that plan.(计划失败) Best Buy's sales rapidly increased. Its stores were about one-third larger but generated nearly 70 percent more in sales than a typical Circuit City. But the problem then was Best Buy's profit margin — it didn't make as much on those sales as Circuit City did. (b 的比c 买的好,但是利润没有c 的高)"It is not like we were not paying attention to Best Buy," CarMax veteran Ligon said. "We knew they were a threat. But we just didn't take them seriously enough because they weren't making much money yet. (没有重视竞争对手) When it understood the problem Circuit City failed to act. In 2000, when the company finally woke up to the existential threat posed by Best Buy and the mass merchants, there was both the time and the resources to make the fundamental changes needed to compete more effectively. But the management and the board failed to develop a comprehensive strategy to revamp. Instead, management began to focus piecemeal on a host of issues. It changed the advertising, it remodeled stores, it redesigned the supply chain, it dropped appliances, it redesigned sales training; but none of these changes were pursued in an integrated, disciplined or effective way. In the process it spent $1.4.billion, much of which was wasted. (意识到竞争的时候完了,制定的政策不好) When you are producing strong financial results, perhaps it is easy to think that

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