Dear Circuit City,
I’ve never been to any of your U.S. stores, so I can’t really comment on why you’re facing bankruptcy right now. But I have been to The Source, your Canadian outlets that used to be Radio Shacks, and it doesn’t surprise me that your Canadian subsidiary is also filing for bankruptcy protection.
I realize it’s convenient to blame this on the economic downturn, but may I offer some other suggestions:
- You took a recognized (if imperfect) brand and replaced it with one that nobody gets or relates to.
- You changed from an electronic component store to a home electronics store, trying to compete against a behemoth you had no chance against
- Instead of innovating, you copied their ideas without improving on them
- Your big-ticket items are more expensive than identical ones at Best Buy and Future Shop, and you have much less selection
- Your stores are tiny, a problem you have only recently been trying to fix
- You sell cheap plastic junk that doesn’t work and that nobody wants
- You fired specialists and replaced them with minimum-wage morons, a plan which quickly backfired (*cough*)
- You have no morals, which has gotten you in court several times against customers and your own employees
And yet, shockingly, you’re in the hole. I guess that means this job you just posted in TMR isn’t getting filled…
Remember when Circuit City was a favorite in “Good to Great” by Jim Collins? Remember when we thought being big gave you clout with customers and vendors to produce long-term returns (Michael Porter’s 5 Forces Model)? It’s time we recognize that the old approach to management doesn’t work in a rapidly shifting competitive world. There are winners in today’s market, but they follow a different approach. Read more at http://www.ThePhoenixPrinciple.com
My advice to those Circuit City peeps that lost their jobs, hit the jobs boards fast while there are still jobs posted –
http://www.linkedin.com (professional networking)
http://www.indeed.com (aggregated listings)
http://www.realmatch.com (matches jobs based on your skills)
Good look to those looking for work!
I used to love Radio Shack for my component needs, they had little nick nacks for everything. Well guess there’s only Adisson left. If they sold fertilizer they have everything in there to blow up the island =)
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