Why best buy failed in europe

Last spring, it shut down nine of its stores in the region after being there for five years. CNBC contributor Shaun Rein, who's the founder of China Market Research Group, pointed to a few things: the Chinese won't pay for such expensive products unless they're a brand like Apple ; there's too much piracy in the market which reduces demand for electronics products at a fair market price; and like Europeans, the Chinese don't want huge, flagship stores. Best Buy is also botching expansion plans in Turkey.

Though the company determined its Europe plans before the recession hit — when things looked much differently, and the "Big Box" concept was thriving in the U. The retailer was smart to partner with a UK company, but it could have gotten more feedback from its UK business partners before aggressively moving into the new market.

According to Yahoo , " closing the 11 British stores would be the biggest admission of failure so far in the U. For you. This will be obvious after analyzing a story of an American electronics mega-store Best Buy and its failed attempt to enter the UK market. Brand identity is generally a good thing. This is because the brand of the company will be associated with the reputation of the country itself.

Undoubtedly, this effect helps to sell more vehicles, which means it is beneficial to the brand. This is partly because their reputation came to be, thanks to the quality and outstanding characteristics of German autos. This is exactly what Best Buy did in Britain. From the very beginning it positioned itself as an American store. Best Buy positioned itself as a mega-store, meaning that you can shop for pretty much anything electronics-related.

So what can we learn from their extraordinary failure? Commentators lost no time in pointing out that they made more than their fair share of bad decisions: they delayed their launch by almost 2 years, landing in the depths of recession; they telegraphed their view of the market gap, allowing competitors to respond before they'd opened their doors; they underestimated cultural differences and overestimated how fast they could build a brand; they set sales expectations too high and discounted prices too low; and they moved into big sheds while customers were moving on-line.

None of those decisions, on their own, should have been fatal. But why did they make so many? And why did they fail to recover them? Quite simply, they made lots of bad decisions because they didn't commit on the big decisions.

How we will win Successful businesses win by being great in a single respect: they have the most innovative or highest quality products; they offer the best service experience, or they offer the lowest prices. Account icon An icon in the shape of a person's head and shoulders.

It often indicates a user profile. Log out. US Markets Loading H M S In the news. Aimee Groth.