Summary
Being number one has the advantage of choice that the competitive market place rarely gives a retailer. But with choice, comes the need for discipline. Here why Best Buy's latest move should concern investors.
Analysis
Best Buy following Toys R Us into the used game market is a classic tactical response to a competitor's move, though it remains to be seen just what kind of customer has in common.
Whether Toys R US can be successful in this traders market was problematic at best. Now, its even more unlikely. Meanwhile Best Buy managements attention is diverted, especially, at the store level, from more pressing issues.
The demise of Circuit City has left sort of a competitive vacuum in CE retailing. Nevertheless, while the market may be wide open, BB is limited by number of hours in the day and the number of talented people they have. the question is: Will they divide those people among hundreds of opportunities or focus on several big ones?
