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

Tweeter Paper

2372 words - 10 pages


Group 6

RU Consulting, L.L.C
Nick Morgan
Laura Pynn
Jennie Ramberg
Brenna O’ Regan
James Morrison

Tweeter, etc. is an audio/video company that faced pricing strategy problems in 1993 that made the history books for adverse pricing strategies. Sandy Bloomberg formed the company in 1972 and the company faired well in the 1970’s and 1980’s. It grew to 13 stores when they implemented the Automatic Price Protection pricing strategy. This strategy nearly drove the company into bankruptcy. The company still faces unremitting problems which this paper will address. This ...view middle of the document...

[2] In short this organization kept the retailer’s market from dropping out from under them. They did this by setting price standards up that nobody who sells certain brands and models of products can sell them below a given price at which they all agreed to.
In the early 1990’s, Tweeter’s sales were dropping. They conducted focus groups to figure out where the problem was. Their surveys said the customer understood that they had excellent service, but they didn’t like the high prices. So Tweeter’s management staff came up with Automatic Price Protection to combat the perception of high prices. Tweeter would monitor the weekly sales ads of all the major local papers and cross reference that with sales within 30 days; and if a customer paid more for a product than the sale price, Tweeter would refund the difference. At first, this strategy was good, but as larger competition moved in, Tweeter began writing more and larger checks. By December, 1995, Tweeter in total had written 29,526 checks to the tune of $783,863. [3] This nearly drove the company into bankruptcy and later led them to be studied as adverse pricing strategies.
Tweeter began to shift its focus from APP pricing strategy to making money by acquisition of other small high-end retailers of electronics. Like the APP, this strategy worked well at first and then failed. Here is a listed breakdown of their acquisitions (listed only for historical relevance):
• “1996 Bryn Mawr -13stores
• 1997 HiFi Buys- 10 stores
• 1998 made their first public offering of stock, $40 a share and
changed their name to Tweeter Home entertainment Group, Inc.
• 1999 Home Entertainment of Texas- 7 stores
• 1999 DOW Stereo/Video, Inc. – 9 stores”[4]
• “2000 Douglas TV- 4 stores
• January,2001 House of Blue Concerts to rename the Lakewood
Amphitheatre to HiFi Buys Amphitheatre
• April,2001 E-Center in Camden, NJ to rename it the Tweeter
Center at the Waterfront
• May, 2001Big Screen City- 4 stores
• June, 2001 Audio-Video Systems – 3 stores
• August, 2001 Sound Advice- 33 stores
• March 2002 Hillcrest High Fidelity
• April, 2003 Coral Sky Amphitheatre to Sound Advice
• July, 2004 NOW! Audio Video- 6 stores”[5]
The purpose of listing all the acquisitions is to emphasize how the company has grown into 154 stores in 13 states[6] and it is crucial to know where we have been so we know where we are going. Each of the companies that they acquired were small retailers with a reputation for high quality service and installations. This is a rapid evolution in 10 years. It changed its strategy to focus on becoming a national retailer. They were trying to become a household name through the ‘back door’ of people’s...

Other Essays Like Tweeter Paper

The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has

The Versatility And Flexibility Of OLED's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Living In A Cashless Society

1637 words - 7 pages of cash. For those who live in a country where crime rate is excessively high would not need to be troubled or anxious of be robbed. It further helps to reduce paper work. For example, storekeepers, importers and exporters, brokers etc can keep their clients record on their computer rather than having issue paper on regular purchase or transaction (Arbeau, 2009). However, to have efficient or best possible benefits of cashless society, the

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Young And Relentless

1737 words - 7 pages There are numerous influences that can be responsible of teenager’s behaviors and attitude as they develop. One factor that is important to these behaviors is parental figures being over involved or uninvolved in their children’s lives. Many of these effects include illegal substance abuse, rising sexual activity, underage alcohol consumption, and tobacco use. Studies show parental participation plays a key role in the characteristics developed

The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

Related Papers

Case Study Of Tweeter

654 words - 3 pages Case Study of Tweeter Decision: APP would not continue to be an effective policy in the future. Instead, Tweeter may think about abandon the APP strategy and focus on high-end market, emphasizing ‘high quality and high service’. Several considerations about the decision: 1. Customer Based on the dimension of ‘price’ and ‘quality/service’, there will be 4 segments, which are ‘entry-level customer’, ‘the price bitter’, ‘the convenience

Bradley Cafe Essay

2108 words - 9 pages will allow them to know they are appreciated. Networks, Telecommunications, and Wireless Computing M-commerce are speed of delivery to target markets, reduced operating cost, expanded mobile target market, and centralized information thru wireless networks. “M-coupons are better than traditional paper coupons because sometimes you can forget to bring paper coupons from home, but most phone user keeps their phones with them most of the time

Marketing Strategy For Southwest Air Essay

4005 words - 17 pages MARKETING TERM PAPER FOR [pic] AIRLINES: A MODEL OF EXCELLENCE IN THE CIVIL AVIATION INDUSTRY Table of Contents 1.0 INTRODUCTION 3 1.1 Company Background 3 1.2 Research Topic 5 2.0 ENVIRONMENTAL ANALYSIS 6 2.1 Political, Economic, Social and Technological Analysis 6 2.2 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis 7 2.3 Summary 9 3.0 SEGMENTATION, TARGET AND POSITIONING (STP

Seattle Mariners Essay

3223 words - 13 pages merchandise online and to various international communities. Different media have different valuable selling points. For video, the organization can use YouTube, for pictures it can use Instagram, for news Tweeter is best while Facebook is the best for an online community and interaction. Finally, the paper concludes by making recommendations that the firm would have to take so that it can improve the standings it has as well as the rankings in the