Monday, January 26, 2009

Strategy... and Circuit City

Circuit City used to be one of my favorite stores - I used to find the best prices and best selection. Even the employees used to seem more helpful and not so pushy.

However, with the onslaught of much cheaper online retailers like Newegg and Amazon and a switch in the customer relations department, Circuit City sent itself to its grave.

In the last few years, it seemed like the employees were driven entirely by commission, especially when selling inferior products at high prices and always pushing extended warranties. Not only that, but apparently their most valuable employees, the most experienced employees weren't valuable enough to keep:

http://www.usatoday.com/printedition/news/20070329/1a_bottomstrip29_dom.art.htm

Best Buy's employees don't earn a commission and aren't as pushy. Too bad Circuit City didn't have a longer chance to learn from this fatal mistake.

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