Do you React to Your Competition or Do They React to You?
- Comments: 3
- Written on: January 19th, 2009
Circuit City’s announcement that all of their remaining electronics retail stores are closing exposes a fundamental but often overlooked lesson that all small business owners need to know and understand.
Before reading on, ask yourself a simple questions – does my business respond to the actions of our competitors, or do we make our competitors respond to us?
Best Buy’s Changing Plans – Background
A massive Q3 2008 downturn in Best Buy’s sales forced electronics retail giant to reassess their plans of placing new stores within 5 miles of Circuit City locations in an effort to grab more market share from their rivals.
Best Buy was aggressively working to choke off competition from Circuit City by saturating only the markets where Circuit City had a retail presence.