From 2005 to 2012, we saw a major shake out of the consumer electronics retail business. CompUSA, Circuit City, and Radio Shack all went bankrupt and the lone remaining player was Best Buy who, by 2012, was really struggling. All of these retailers were hurt significantly by the emergence of online shopping for consumer electronics products via outlets such as Amazon.com. While Best Buy continued to operate during that period, picking up a lot of customers from their peers as they bankrupt, it has not been easy. The stock price of Best Buy during that period went from $36 in 2005 to a low of $13 in 2012.
Bob's Gutsy Leadership Blog
Archive for December, 2015
General Motor’s faulty ignition switch saga, which has been a major story for the past year, made us all aware of just how bureaucratic a company can become. The problem began in 2005, when the faulty switches were first installed in some GM models. The switch could accidentally flip into accessory mode, thus disengaging the […]
In last week’s blog, I talked about the leadership problems at Yahoo. In the past week the discussion of what the troubled company should do emerged as a hot topic, as the Yahoo board met to work on exactly that topic. In the midst of all this, I was invited to discuss the situation on CNBC on Dec. 7. Below is the link to that interview in which I discussed alternative futures for Yahoo. Since the interview, the Yahoo board of directors has come out with a statement that it plans to keep the Alibaba shares, but jettison the web-based business via one of the following options: spinning it out as a separate company, selling it to a company like Verizon, or selling it to a private equity firm.
It is amazing how Yahoo’s top management just keeps providing us with lessons on how a strong leader should NOT act. The latest wave of negative articles about what is going on at Yahoo was spawned by the recent exit of dozens of Yahoo executives.