Extraordinary Business
Links
Previous Posts
- Wipe The Slate Clean
- Bailouts and Bonuses
- How long will the economy affect your business?
- The impact of Fantasy Football on Business
- Top Skills Sought by Employers
- Where do you have to go to generate millions in sa...
- Blogging in some flight time
- Success Through The Generations
- A Review of Paradise Lost
- Grow Your Business
archives
- January 2006
- February 2006
- March 2006
- April 2006
- May 2006
- June 2006
- July 2006
- August 2006
- October 2006
- December 2006
- February 2007
- April 2007
- August 2007
- September 2007
- October 2007
- January 2008
- March 2008
- April 2008
- June 2008
- September 2008
- November 2008
- December 2008
- January 2009
Great to Bankrupt
Posted Sunday, January 18, 2009
Between 1982 and 1997, Circuit City was growing at a rate 18.50 times the market* and was considered one of the strongest companies in home electronics. Recently it was announced that Circuit City would be closing all its locations and liquidating its inventory after a failed attempt to find a buyer.
Circuit City was one of the companies highlighted in Jim Collins book "Good to Great" which studied the traits great companies possess that allow them to sustain growth above the industry average. Besides Circuit City, Fanny Mae has also experienced its own problems in the wake of the crash of the housing market.
We need to remember that corporate performance can be a fragile thing. There are many factors to calculate why these once great businesses fell and in the end, Jim Collins may have said it best himself in the book's first chapter; Good is the enemy of great.
The key to thriving in any environment is to address the little problems no matter how insignificant they seem to be at the time. These are the issues often overlooked when business is doing well, but are the Achilles Heel when business tumbles. Businesses typically don't fail overnight, they are slowly destroyed by complacency and oversight. The story of these two once great companies might have ended differently had they addressed the warning signs that began to surface years ago.
*"Good to Great" by Jim Collins, Harper Collins Publishers
Circuit City was one of the companies highlighted in Jim Collins book "Good to Great" which studied the traits great companies possess that allow them to sustain growth above the industry average. Besides Circuit City, Fanny Mae has also experienced its own problems in the wake of the crash of the housing market.
We need to remember that corporate performance can be a fragile thing. There are many factors to calculate why these once great businesses fell and in the end, Jim Collins may have said it best himself in the book's first chapter; Good is the enemy of great.
The key to thriving in any environment is to address the little problems no matter how insignificant they seem to be at the time. These are the issues often overlooked when business is doing well, but are the Achilles Heel when business tumbles. Businesses typically don't fail overnight, they are slowly destroyed by complacency and oversight. The story of these two once great companies might have ended differently had they addressed the warning signs that began to surface years ago.
*"Good to Great" by Jim Collins, Harper Collins Publishers
Labels: "Dan Paulson", "Fanny Mae", "Freddie Mac", "Good to Great", "InVision Business Development", "Jim Collins", Change Management, growth, Leadership, marketing, Sales, Strategy
posted by Dan Paulson @ 4:19 PM 
Comments:
<< Home
I’m not much of a “shopper” even for items I like, want or need. Heading out & into retail stores with the vast aof e-tailers like Amazon.com and comparison shopping websites like, that I prefer online. As far as electronics retailers go, I've thought highly of Circuit City and would always check them first in person when considering the purchase almost everything, even down to my $60 webcam, or $40 headset.
Nothing beats “seeing it work”; are a camcorder's buttons/controls easily accessed/used, can a tape be changed while the camera is mounted to a tripod, etc. With knowledgable in-store help, I'd get those "questions" answered and more. A sales consultant helps you make sure you've not missed a great 'pro' of a "camera B" which you hadn't considered much ... or can fully contrast "camera C" you've not considered at all that meets all your stated needs at a fraction the cost. Then to walk out the door with the peace of mind of their full guarantee they'll take it back without penalty should you decide it doesn't work for you or work well with your PC, TV, etc.
With Circuit City, I appreciated:
1. Usually finding an equal or better selection of items.
2. Knowledgeable non-commissioned sales consultants.
3. No questions asked, no restocking fee return policy.
4. Efficient online order / in-store pickup process (usually same day) combined with the 24-minute / $24 pickup guarantee to back it up.
Even before I heard that they’d be closing down, I'd seen evidence of #1 & #4 taking a hit. In recent months, I've received two of those $24 gift card from their pick up guarantee. And while the sales consultants I did deal with were just as knowledgable as ever, it seemed there were fewer of them and/or that they weren't as "eager" to ask me if I needed help.
Who would intrinsically know of the retailer's deteriorating situation than the in-store staff ... as Dan states, who I'm betting were seeing more signs of the hand-writing on the wall ... all those little things overlooked over time (not overnight) which all in some way allowed customers/sales to fade away to the point of closing it's doors.
Post a Comment
Nothing beats “seeing it work”; are a camcorder's buttons/controls easily accessed/used, can a tape be changed while the camera is mounted to a tripod, etc. With knowledgable in-store help, I'd get those "questions" answered and more. A sales consultant helps you make sure you've not missed a great 'pro' of a "camera B" which you hadn't considered much ... or can fully contrast "camera C" you've not considered at all that meets all your stated needs at a fraction the cost. Then to walk out the door with the peace of mind of their full guarantee they'll take it back without penalty should you decide it doesn't work for you or work well with your PC, TV, etc.
With Circuit City, I appreciated:
1. Usually finding an equal or better selection of items.
2. Knowledgeable non-commissioned sales consultants.
3. No questions asked, no restocking fee return policy.
4. Efficient online order / in-store pickup process (usually same day) combined with the 24-minute / $24 pickup guarantee to back it up.
Even before I heard that they’d be closing down, I'd seen evidence of #1 & #4 taking a hit. In recent months, I've received two of those $24 gift card from their pick up guarantee. And while the sales consultants I did deal with were just as knowledgable as ever, it seemed there were fewer of them and/or that they weren't as "eager" to ask me if I needed help.
Who would intrinsically know of the retailer's deteriorating situation than the in-store staff ... as Dan states, who I'm betting were seeing more signs of the hand-writing on the wall ... all those little things overlooked over time (not overnight) which all in some way allowed customers/sales to fade away to the point of closing it's doors.
<< Home
