Marathon Appliance Chain In China Best Buy Type Overtly
Best Buy wholly owned five-star news, PR China from Best Buy sent the media an e-mail: “Best Buy Five Star Group has received the remaining shares, wholly owned Five Star.”
Sources at that time, the two sides had agreed to the pricing scheme is: Best Buy in February 21, 2009 to pay about 185 million U.S. dollars in cash.
With the initial acquisition three years ago, compared to the low profile seems a lot of Best Buy. That year, for the completion of this acquisition, Best Buy has frequently visited the world’s top central and local governments of Jiangsu, finally in June 2006 to 184 million U.S. dollars acquisition of 75% stake in Five Star. Sources said that as early as the original signed agreement, both sides have talked about the issue will release the remaining shares, that Best Buy will be the sole control of the final Five Star.
This with Best Buy to enter Canada through a similar. In 2001, it acquired Canada
Retailer FutureShop, have already been questioned, but four years later it reached 30% market share.
“Does not scale, only a single store selling efforts to increase profit. Therefore, whether to go high-end promoting or pushing its own brand Ye Hao, Best Buy are trying to break through under the current size disadvantage. But the overall performance far from the competition, open more Best Buy stores are not always recognize the ultimate dream. “
This is only many domestic media and industry experts to challenge the move in China, Best Buy, the tip of the iceberg.
Best Buy Five Star
acquisition, a time of many by the Chinese media and many experts questioned the reasons behind what is it? But no matter how high voices of doubt, we have to believe that Best Buy could not make a trading loss, and this sale is at Best Buy after the first five-star investment, re-produced under a wholly-owned acquisitions. So, the industry attracted many voices of doubt it is because it? Perhaps people on Best Buy’s “Chinese overtly” do not agree, perhaps the development of our Best Buy misread the path.
Rational thinking on the no rational competition
Has been developing in China, Best Buy, the slow and weak forces, not only repeatedly mentioned by the media, have become dismissive of the reasons for its competitors.
Electric Sun Weimin, president, once said that they have not time to consider Best Buy, because the other stores in China, too few, only “cat.”
States United States
Sun, vice president of a small group also believes that Best Buy only from the formal transplant operations in North America model, but limited the number and regional distribution of stores, they simply can not compete GOME.
Proved that this view is not raved. Best Buy into China from the first day until today, Best Buy stores in China to reach the number seven. While on six months ago, Best Buy’s China, “the second store” also has been in a difficult labor conditions. These figures and the Best Buy story twists and turns of China is to let the industry in general question the behavior of the reason Best Buy, and even Best Buy to become the industry’s assertions miss the rapid development in China’s prime-time direct incentive.
However, there is the internal Who better than the Best Buy own solution in which the shamisen it deep?
First of all, since Best Buy had 75% controlling stake in Five Star, after, although in name became as family members, but in fact is not how Best Buy Five Star is regrettable. On the one hand, Best Buy consumer electronics chain in China, the market still remains a new army, on a lot of things to read, not to feel; other hand, the Five Star business also continues to be dominated by veteran Wang Jianguo and the core management of the hands of indeed affect the whole body, therefore, can only be patient with Best Buy. So we see that in the Five Star, Best Buy in addition to import the Management Information System, to do some research and training in addition to, and not as much as the two Chinese companies do not sing a song with the centripetal force.
I am an expert from Mp3 Player Chinese Manufacturers, usually analyzes all kind of industries situation, such as flame retardant tape , ibutton reader.