This website uses cookies to ensure you have the best experience. Learn more

Circuit City Internet Business Strategy

2480 words - 10 pages

Circuit City - Internet Business Strategy


In the fifty years since Circuit City opened its first store, the company has become one of the best-known sources of consumer electronics in the world. Today Circuit City boasts over 600 stores and more than 50,000 associates. The company consistently strives to offer low, competitive prices, high service standards, and a wide selection of products to meet consumer needs.

Circuit City has long prided itself on the outstanding shopping experience it offers to customers. In the 1990 ’s the company was early to see the value of the Internet for making that experience even better. However, they shunned the then-popular approach ...view middle of the document...

The web strategy would then be tightly interlinked and interdependent with Circuit City’s core retailing business, helping drive more revenue to local stores while maximizing the company’s national and international web presence.

Key Business Challenges:

•Use the Web as a means to improve overall company success
•Get into production quickly with novel approach to e-commerce
•Provide superior online experience for customers in every respect

Solution Snapshot

In January of 1999 Circuit City commenced development, using Sun Enterprise servers that had just become available from a subsidiary company. To reach the market as quickly as possible with its novel concept, Circuit City determined to base its Internet presence on prepackaged solutions that minimized development time. This led to the choice of BroadVision to provide e-commerce software.


•E-commerce application built on Sun Enterprise servers and BroadVision
•Sun servers deployed: Sun Enterprise 6500 and 450 servers
•Sun StorEdge A1000 and D1000 disk arrays
•Solaris 2.7 and 2.8 Operating Environment
•BroadVision e-commerce software

Purchasing both servers and storage from a single company helped Circuit City to roll out the new application quickly and with minimal risk. For thorough protection against catastrophe, Circuit City placed identical pairs of systems in two of its geographically separated data centers. For even stronger protection, they engaged Sun service on all four systems at the SunSpectrum Platinum services level. Even though BroadVision ’s pre-packaged approach was designed to minimize the implementation period, a great deal of development had to be done.

Key Business Solutions:

• Depth of information: With BroadVision’s technology, Circuit City has launched an online shopping resource for product and price comparison.

• Fast deployment: Circuit City leveraged BroadVision’s modular architecture to rapidly customize and launch its e-commerce site. Full integration with over 500 “brick-and-mortar” stores took seven months. It included real-time credit authorization, inventory management, and price verification.

• Seamless integration: BroadVision linked Circuit City’s site to back-end inventory systems throughout its network of stores, offering Internet shoppers quick notification of product availability, plus convenient purchase and delivery options.

Circuit City has built a powerful and comprehensive web site that augments, complements and supports its traditional bricks and mortar business. By selecting servers and storage from Sun Microsystems, Inc. and BroadVision ’s e-commerce software, Circuit City was able to bring a state-of-the-art site to market in just seven months. Circuit City met all its project goals.

About The Site

Circuit City’s e-Superstore,, (click on the link to the left to see a sample of Circuit City’s web page) is set up exactly like a physical store,...

Other Essays Like Circuit City - Internet Business Strategy

Circuiot City Essay

2234 words - 9 pages   Failure Analysis/Change Strategy Failure Analysis/Change Strategy Circuit City was one of the chains of retail electronic products omnipresent in USA. It did not matter where you went they had one of their stores, characterized by a selection of electronic with good prices and the most important thing for any customer: highly trained personnel to meet even the needs of customers inexperienced in the use of electronic devices

Strategy and Planning Essay

1315 words - 6 pages in Internet-based supply chain management. Such policies enhance the competitive advantage by promoting trust with partners, as strategic goal. Strategic management is not focused on technologies, but on higher-level issues of functionality for all stakeholders. Stakeholders in information security include government regulators, shareholders, customers, employees and business partners. Additionally, laws, ethical principles, codes of conduct

Wide Area Networks

1741 words - 7 pages different information, enabling universities to offer distance learning classes and many other means that continue to use of the internet. WAN have developed and progressed the information and user option the internet now has available. What actions I recommend? Wide area networks are the backbone of the World Wide Web and how it operates on a global scale. The future of business technologies and telecommunications has changed many

The 2009 Chrysler-Fiat Strategic Alliance

771 words - 4 pages Core capabilities: * Brands * Strategic Acquisitions * Strategic Advertising * Product services * Internet sales Finding of fact one: How can Best Buy maintain innovative products, while facing increased competition such as Wal mart. Best Buy saw its largest rival, circuit city, go bankrupt, However, a new archrival , Wal- Mart , was expanding into consumer electronics and stepping up competition in a price war Wal-Mart

Is4550 Lab 9

632 words - 3 pages mitigation and element of a layered security strategy? a. When implementing a new Policy 3. IN you gap analysis of the IT security policy framework definitions provided, which policy definition was missing from all access to various IT systems, applications, and data throughout the scenario? a. Data Access Policy 4. Do you need policies for you telecommunication and Internet service providers? a. Yes 5. Which policy definitions from the list

Best Buy Company Analysis

2972 words - 12 pages thing for any company and shows that trouble for Best Buy. For many years, Best Buy’s most direct competition comes from Circuit City, the second largest consumer electronics retailer behind Best Buy. Circuit City’s business has been struggling since 2006 and filed for bankruptcy protection in November 2008. Circuit City was forced into liquidation by March 2009. The company stands to gain lot from Circuit City’s demise. According to one research

Windows NT

1168 words - 5 pages of places where the backbone networks meet. For example, 1a packet travelling on a Sprint circuit to a Sprint router, can only transfer to an MCI circuit at certain places. This is just like how certain city streets often run parrel to each other for many miles before reaching an intersection. These intersections that they call 'Network Access Points' (NAP) are very crucial to the transmission of data on the Internet. A Web is a program running

Case Study of Tweeter

654 words - 3 pages customer’ and ‘the quality/service customer’. According to Herschman’s estimation that ‘the quality/service customer’ group accounted for 70% of Tweeter’s clientele though it only represented only 10% of the total New England customer base, which also far exceed the makeup of customer base of Tweeter’s competitors( 10% for Lenchmere and 15% for Circuit City). Thus, we can say that ‘the quality/service customer’ group is the core customer of Tweeter

Samsung Case - Innovation

666 words - 3 pages and relatively upscale customer segments around the world ► Where did they decide to sell? Eric Kim in 1999, reorganized the firm’s distribution channels, particularly in developed markets like Europe and the United States …And distributed through quality-oriented electronics specialty stores—such as Best Buy and Circuit City ► What was the new pricing policy? Prices shifted upward. ► How do you think sales revenue and the margin of Samsung

Case Summaries Accy 401, Emba; Fall 2000

5169 words - 21 pages spread revenues over the life of the contract relative to expected repair costs. This illustrates that accounting is far from an exact science. It also illustrates that rules change and that sometimes those rules do not seem to match economic reality. Financial Accounting from a management perspective: Circuit City and other electronics retailers changed how they conduct business as a result of this accounting rule. That is, the outsourced

Nike Case Study

1111 words - 5 pages Nike Promotion Strategy The Nike Corporation has become one of the most successful and recognizable brands in the world. Nike specializes in manufacturing and selling a wide variety of athletic apparel, footwear, and sports equipment. Nike offers their merchandise through retail and outlet stores, internet sales, partnerships with retailers, and other independent distributers. Created in 1972, the company continues to follow their mission

Related Papers

Circuit City Business Failure Essay

972 words - 4 pages share position. They refused to believe that a smaller company can challenge them. This allowed newer competitors to develop strength in the marketplace and ultimately surpass Circuit City . The poor real estate B-site business locations were one of these mistakes made by management. Circuit City struggled to gain back their market share by developing a poor real estate strategy. Management elected to save money by choosing B-site locations

The Rise Of Circuit City Store

1028 words - 5 pages proved that Best Buy’s strategy was more advanced and successful. In today's economic environment, although cost control is very important, customer service also plays a significant role. Compared to Best Buy’s strategy, Circuit City’s commissioned sales counselors increased its cost, as we can see in Exhibit 3b. And when Circuit City wanted to control its expenses, according to the information I collected from the Internet, in March 2007, it

Misalignment Essay

867 words - 4 pages organization’s vision by embracing change and innovation. Likewise, it is essential that organizations employ leaders that possess expert strategic management skills. Lack of leadership is detrimental to the success of an organization as was that of Circuit City. In November 2008, the 60 year old company filed for bankruptcy protection because of a shift in consumer buying patterns from retail stores to the internet. Organizational leaders’ failure

Analysis Of Circuit City Bankruptcy

1122 words - 5 pages by March 8, 2009. The former headquarters of Circuit City Stores, Inc., along with the 58 acres of land was sold in September 2010, for US $5.8 million to DRCC Properties, LLC. The "Circuit City" brand is now owned by Systemax, which uses the brand to sell electronics as an online retailer, Systemax bought the brand, trademark and e-commerce business at an auction from Circuit City Stores, Inc. in May 2009 for US $14 million