While some retail industry insiders believe that Best Buy can still survive its recent downfall, seekingalpha.com has noted some disturbing similarities in how Best Buy's management in handling its troubles with what happened at Circuit City in the mid-2000s. Best Buy recently confirmed it is laying off workers, just as its former rival had done shortly before it faced bankruptcy and liquidation.
According to the seekingalpha.com post:
The latest move by Best Buy is extremely troubling because it shows that the company is replicating the bad decisions made by Circuit City in 2007, right before that company went belly up in 2009. It is almost as if Best Buy's current management team studied the transformation strategy outlined in Circuit City's annual reports from 2006 and 2007, in an attempt to replicate it. For context, in 2007 Circuit City's turnaround mantra (as described in its 2007 annual report) was "Its all about helping you." That turnaround catchphrase is remarkably similar with Best Buy's 2012 transformation tag line: "Making technology work for you."
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