Blog 4

With the current economic crisis America is facing there have been several bankruptcies in retailers such as Circuit City, Goody's and Linen's and Things. Circuit City was once the second-largest consumer electronics chain in the U.S., they are now at the point closing 155 across the U.S. and even exit 12 markets completely.Why are retailers facing such trouble? While there are many reasons, I believe, that there are some major issues such as over pricing, competition, and amount of advertisements.
The economy is doing horrible right now so people are more price conscious. As for Circuit City, the prices does not compare to Best Buy. Even though I don't even shop at both stores my family and friends always talk about the better prices at Best Buy.
As for competition, the only competition Circuit City has is Best Buy which is like the "new" Wal Mart for electronics. The first thing I think when I hear electronics is Best Buy. They have definately worked hard on brand positioning because all my family and friends shop at Best Buy.
The last thing I think went wrong with Circuit City is their advertising. I never remember seeing any advertisements for Circuit City. They really need to work a jingle of some sort; jingles work alot of times when your trying to get someone to remember your name.


http://www.bloggingstocks.com/2008/11/03/circuit-citys-death-spiral-begins-closing-155-stores-and-exiti/ http://www.investmentmoats.com/stock-market-commentary/bankruptcy-watch-circuit-city-files-for-bankruptcy/