Wednesday, November 12, 2008

Maybe SysteMax Will Buy Circuit City

With Circuit City going the way of CompUsa, a potential exists for the remaining Circuit City assets to be snatched up by SysteMax, parent company of TigerDirect. With Circuit City closing out the majority or all of their stores, the remaining assets such as it's brand, website, and inventory, might look like an attractive purchase for companies looking to break into consumer electronics market.

I would think for a company like SysteMax, the Circuit City database of customers and the brand itself would be a very attractive aquisition. The Circuit City brand is very well established, and to be honest, has a deeper market penetration with regards to general consumer electronics then any of the other SysteMax brands. Most of the SysteMax brands are focused on the geeks, who regularly build their own computers.

In either case, Circuit City's main competitor Best Buy is sure to be happy that it will finally be dominant in it's market. Circuit City claims that it will continue to operate, however, I wouldn't be buying an extended warranty from them anytime soon, lol.

5 comments:

  1. Anonymous1:05 AM

    well writen and put together. Just one thing to add. Before you go saying that you wouldn't buy an extended warranty through circuit city look up the facts. Extended warranties are not through the companies, it is all third part(actually one of the largest insurance companies in the world). And just to add on to that whatever you buy there get the protection plus plan, it covers absolutly anything that can happen to your product besides fire damage.

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  2. @Anon: Thanks for commenting, but the fact is, many times when companies go bankrupt, you may be left with things like warranties and gift certificates that are not worth the paper they are printed on. Not saying Circuit City would do that, I'm sure someone will buy them out in 2009, but if the company no longer existed, then what is the recourse for customers of a Circuit City Advantage Protection plan, with no more Circuit City?

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  3. @Anon,


    Circuit City is no more, go ahead and try to use that Circuit City Advantage Protection now, lol.

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  4. Anonymous9:56 PM

    hmmm.. thats's pretty weird i just used my plan to get a bulb replacement. Looks like it is thru another company...

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  5. Well, my prediction about the purchase was 100% correct, but then again, I can see into the future. Oh, you didn't know that?

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