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Circuit city has long been a direct competitor with Best Buy and one that Best Buy would need to seriously evaluate until recently. Circuit City has faced serious financial losses over the last year. According to Bigcharts.com, Circuit City’s stock price has dropped from $16.52 in May 2007 to $.31 in October 2008. Unfortunately, Circuit City will not be able to continue to operate with the losses they have faced. According to McIntyre (2008), “the company will either have to close a large number of its stores and cut staff or file for Chapter 11” (www.money.aol.com). This opportunity is very big for Best Buy; Best Buy’s pricing power will improve from the moderation of competition...
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