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Circuit City Internet Business Strategy

2480 words - 10 pages

Circuit City - Internet Business Strategy

Introduction

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.

Hardware/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, www.circuitcity.com, (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,...

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