Sample Case Study Paper on a Report of Circuit City Fall

Circuit City penetrated the electronic retail market and committed its operations in a Five S’s philosophy entailing selection, saving, service, satisfaction, and speed. After running for some few years, the company became victim of poor marketing decisions. The implications were severe, leading for filing for Chapter 11 bankruptcy in 2008 and closing down in 2009. This report identifies the importance of applying suitable product differentiation strategies, controlling the competitive landscape, and making sound business decisions. It also points at the important of employees’ engagement, satisfaction, and engagement in business-related matters.

The Five S’s philosophy helped the clients to select from a wide variety of merchandise. Given that the company specialized in electronic elements, the IT connectivity across all the stores was excellent (Wurtzel 196). Clients would receive expert advice from a commissioned sales force, where convenience service and repair of different items was guaranteed. The company’s point-of –sale systems facilitated quick operations and kept senior players appraised of inventory needs. At this period, Circuit City utilized customer satisfaction surveys to determine the behavior of their products in different market segments.

Philip Schooner reshuffled the management after he replaced Mccollough in 2005 as the president at Circuit City. The retailer realized that they were paying too much for employees, hence decided to lay off 3,000 employees. Schoonover defended the decision indicating that it was saving the company’s finances. “Unfortunately, some of the laid-off employees were the most experienced and knowledgeable” (Wurtzel 214). Low wage employees replaced them. Competitors such as Best Buy hired the sacked employees, utilizing their skills and knowledge to outsmart Circuit City in different market segments.

While the company was trying to reduce the cost of sale and commission paid to employees, the change was handled badly. New management meant a different style of marketing, problem solving and decision making. Similarly, new management and employees team was not able to sustain the production of innovative electronic, hence impossible to meet the growing electronic consumer market.

Work Cited

Wurtzel, Alan. Good to Great to Gone. New York: Diversion Books, 2012. Print.