Archive for the ‘General’ Category

Best Buy’s Best Bet

I just read an article about Best Buy’s struggle in the current economy. There were a lot of comments about what direction they should take. I think its all about the price. Electronics are the same in every store, so you go where it is the least expensive. I like to browse at Best Buy, but often buy my products somewhere else. With a tight economy, people shop around and Best Buy’s prices are not usually the lowest. I recently bought an HP laptop for $299 from Frys Electronics. Best Buy had the same laptop for $399. They could add value by having very technical knowledgable staff, but they usually don’t know more than I do. Their weekly sales ads do not encourage me to visit either. They need to take a trick from Walmart. Offer a lost leader product to get you in the door, then sell you something else while you are there. Something that has a high profit margin like cables.



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Hulu and The Walt Disney Company recently announced that Disney, through a subsidiary of ABC Enterprises Inc., has agreed to join NBC Universal, News Corporation and Providence Equity Partners as a joint venture partner and equity owner of Hulu.  This means that Disney now owns 27% of Hulu, the online video streaming web site.  Although Disney will act cautiously when posting traditional cable content to the site, it is the beginning of a very impactful change to the cable industry.  Now that Disney is part of the Hulu family, which includes ABC and ESPN, the content potential is enourmous.  Since Hulu’s business model is based on ads for revenue instead of a subscription cost, it means free content to consumers.  Right now, you don’t even have to register on the site unless you want to watch “R” rated programs.  There is also talk of a premium service offering on Hulu.  I am assuming this means watching the content without the adds, which are required today. I think we are a long way from the masses cancelling their cable service for online alternatives, but there are some that have already chosen that path.  Hulu, along with other alternatives like Apple TV, TV.com and YouTube, is very quickly making the options more viable.  The cable industry is offering intergrated services to add value, such as programming your Tivo with your cell phone or checking voicemail on your TV.  The question is, what will strike a chord with consumers?

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This is my first post on my new blog.  The content of this blog will be variable until I hone in on a topic of preference.  Come back often to get updates.

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