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MarketingManagement 422 Strategic Case Study Circuit City And Its Use Of the Internet As a Business Strategy Prepared by Jose C Gonzalez Submitted 04192001 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 50000 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 that many bricks-and-mortar retailers were adopting where online channels were viewed as replacements for or alternatives to the traditional channel Instead Circuit City saw the Web as a way to complement its retail outlets and provide customers with more reasons to visit a store To define develop and deploy its web strategy Circuit City wanted a robust site that would replicate the customer experience in its Superstores while leveraging the advantages of 24-hour Internet access Detailed product information comparison capabilities depth of selection and immediate inventory information were critical features that the Circuit City web site required Key Business Issues Circuit City has competition at local markets-traditional electronic retailers as well as Internet-only players including catalogers and national distributors To expand upon its national reputation as a leading high-service low-price retailer Circuit City wanted a site that would leverage its national store presence To do this the site needed to seamlessly integrate its retail shops with a powerful e-Superstore
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