Best Buy & Comp USA Term Paper

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com and do not have brick-and-mortar expenses like Best Buy. In the long-term, shifting to a service-based model that caters to more localized regional needs may be necessary, as the traditional 'low, low price' model of the company may cause profit margins to dwindle too low, as consumers have more comparative options and access to discount retailers.

CompUSA

Issue: Poor Customer Service

Like Best Buy, CompUSA is an electronics store. Thus, there is always a chance of dealing with a supersaturated market. With computers, there tends to be a higher turnover than other items than in other technological markets, 18 months according to so-called 'Moore's Law' (Malhotra, 2007). Thus saturated demand may prove less of an issue, despite underperformance by Microsoft's new Vista operating system. But CompUSA has another problem -- poor customer service and customer relations. "Did I mention that some of the most tedious moments of my life have come when I've waited in line to buy something at a CompUSA," notes one recent shopper (McCracken, 2007).

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As consumers have ample opportunities to purchase computers in other venues, such as the Internet, which offer more opportunities for price comparison and value-based shopping, CompUSA's main strength should be its customer service, not its weakest facet. Adopting other aspects of successful retailing venues like the Apple Store, such as scheduling an appointment in advance and shifting to a more service rather than product-based organizational model is essential. Putting customer service first and rewarding stores and employees that cater to customers as part of the reward-based system within the company (even offering bonuses the most helpful and highest-rated employees) is necessary for the company to survive and to remain competitive.

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