Compusa analysis 15249

In order to solve the issues mentioned above and remain competitive among the PC retail industry, CompUSA needs to reevaluate its current standing and reposition itself to stand among the top retailers of computer and computer related products. Recently, CompUSA has made considerable attempts to solve some of their problems with programs like The Forth Quarter Incentives. In order to make these changes the company engaged in a certain degree of risk and took on some calculated investments. The bottom line is CompUSA needs to focus on sales and increase their revenues. “ Sales cures all,” addressed Mark Cuban at Peter Lowe’s Success Seminar. This statement pretty much sums up what being in business is about. In order for a business to be profitable and remain profitable, the corporation must have enough income to cover its expenses and then some for profits, and so must CompUSA.

First CompUSA needs to re-identify their direct and indirect competition. They need to observe the market trends and the direction their competition is taking. Again, CompUSA currently carries strictly computer and computer related products. Their prices are relative higher than their more popular competitors, and their product line is far diverse, which is one of their strengths in the PC retail industry. There is no other high volume retail store that carries exclusively computer and computer related products including soft and hardware, making CompUSA one of a kind. But what else is CompUSA’s competitive advantage? Not much, which makes every other retailer of PCs a primary competitor. Therefore, we now must analyze all their competition including SAMs, Best Buy, Office Max, Dell, Gateway, Office Depot, etc. (all retailers who carry computer and computer related products.)

Word Count: 280