Forums: Discussions for entrepreneurs and small business.

Yes, in fact, and I didn`t even bring this up before but I also think the concept of CompUSA as a computer store is even outdated.  When I went there, I felt like walking into a 1990s retail concept.  They simply did little to update themselves in a time when Apple Stores are raising the bar on what a computer store could be.

Woah, a whole `nuther point! Competition tends to get stuck meaning how a business manages a tactical shift with other similar stores in terms of pricing, goods and services, and customer relations. But by gosh, there`s another side of competition, and that`s "Display."

Yes, it`d go under Marketing, but it`s really a pretty solid area unto itself.

I think CUSA bit off more than they could chew when they bought Computer City from Tandy back in 1998/1999 (?). After that they started closing stores and now they are gone for good.

So the problem was over-expansion? My argument would be something like Wal-Mart in comparison to, say, K-Mart.

Steve is right. They lost focus. Not to mention their prices were absurd compared to others and their customer service was terrible.....good riddance...

Alright, so focus, pricing, and customer service. That`s the takeaway from watching CompUSA go out of business.

When I see these kinds of real-world examples, I think about how each of us building a new business can benefit from watching what happens to those "ahead" of us, so to speak.

It`s one thing to talk about customer service, pricing, focus, product, and so forth. It`s another to watch a company sink because they chose to do something different.

I`m speculating, but I believe many companies like CompUSA get so caught up in going public and wringing profits out of their operational side of things, they fail to understand that without a product and good connection with the customers, no amount of operational saving is going to keep the business running.

I think the final dagger for CompUsa came when Best Buy rolled out their `order online / Pick it up in the store` service.  Friggin amazing idea if you ask me.

CompUsa had products that could have competed with WalMart but they never advertised that in their inserts or put any focus on it.



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Aaron Wood
CEO
San Diego Dream Weavers
http://www.sddreamweavers.com
awood@sddreamweavers.com

New and improved! Now with blogging goodness!
http://www.sddreamweavers.com/san-diego-seo-marketing-blog/

Jeez, I totally forgot abou that!---the pick up in the store! Excellent memory Aaron, and I think you`re right, it had another major impact...

I would if it helped me.  I`ve never had to use it.  I don`t know about Circut City because all the ones I`ve seen have gone out of business.


-------------------------

Aaron Wood
CEO
San Diego Dream Weavers
http://www.sddreamweavers.com
awood@sddreamweavers.com

New and improved! Now with blogging goodness!
http://www.sddreamweavers.com/san-diego-seo-marketing-blog/