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Oh, an i wanted to Ad “RENT ROLE” to the stack of costs for Best Buy vs. Wallmart. All those fancy locations that they are paying for out of the nose that helped them knock out Circuit City and Speciality stores has got to be killing them. Wait until THEIR property taxed start going, up, up and up… Hmmmm… Would like to see thier lease portfolios and when the come to renegotiations… can’t imagine all those cow pasture wallmart stores are going to be costing them an arm and a leg into the future… But the best buy stores… Yikes… Prime realestate and state/city gov is looking for more $$$ to keep filing those pot holes (like here in Chicago…)
Oh… silly me… I realized that “Best Buy” is making all their margin (0 plus) on $6 cables that they are selling as a “best buy” to their valued customers at $65 a pop. gotta get all those black boxes connected somehow… I guess they built that cost model into figuring out how to pay for all those employees and fancy store locations…
Instead it has said it will create differentiation by improving its display areas and in-store experience.
The messages coming out of Best Buy, though, are mixed at best. It recently closed several of its Magnolia stand-alone stores and took over leadership of that specialty division. That move seems juxtaposed with a goal of elevating its in-store experience.


Hmmm…. I am naive on big CE marketing strategies cuz I am just an IT strategist, but my query here is what’s the uptake/traction if any on Walmart’s stratgic relationship with Dell? Seems like Dell has a pretty good network of no brand contractor relationships for installs and maintenance on PC stuff, but not much of a recognized brand for services (I know they are not a leader in IT professional services like HP).
However I would hazard to say that the Dell contractors dispatch and logistics ability to service is more refined than Geeks squads. I would also hazard to guess that they have more PC/Networking centric competentcies. For instance, despite it’s best attempts, Geek Squad does NOT have much of a corporate prescences where as DELL is all over that space. As Home Theater/Home Entertainment automation is becoming more and more server (or server like) centric vs. green light, black box CE centric, it seems that the Dell folks would have the edge. Also, the other defining factor goes back to back office operations. Who has the better Ecommerce Site? Who has the better CRM and Service/INcident infrastructure (for dispatch, repair, warranty, help desk, etc…) I think again that tilts toward Dell… Just a thought. I guess I should leave that debate upto the Investment Bankers/Boards that are doing the due diligence and strategic funding/deal making
. but as a technologist, i think that Dell is in a better position re logistics/operations and Walmart is in a better place re just moving lots of boxes and not worrying about hefty payrolls…