With so much growth happening for digital and technology companies,
I thought it’d be interesting to take a look at how the traditional retail
space is doing. We’ve seen some companies,
like RadioShack and Circuit City sink as they failed to keep up with the
rapidly changing tech environment. Others, like Best Buy, have been able to
keep their heads above water.
As a traditional retailer, how do you continue to be
successful? Is this truly a dying industry or do companies just need to change
their strategies?
Continuing to use Best Buy as an example, they have able to
continue being profitable by pivoting their value proposition. What was once a product company is now
positioning itself as a service company. They are currently planning to rull
out a service that brings employees to their homes to ensure consumers are
utilizing all of the benefits and upgrades of the products they purchase. While
this has allowed them to maintain market share in the electronics and
technology space, time will tell if this will work long-term. Amazon and other companies are taking notes
and are releasing their own service-style programs to keep up with the
competition.
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