I thought that this article was interesting considering our class discussion regarding Best Buy’s difficulties in China. It is interesting to me that after a failed attempt, Best Buy is considering trying again. Their first failure in China is likely due to the fact that they did not develop significant enough global market intelligence to determine the best way to enter there brand in China.
As we discussed in class, it appears that the best strategy that Best Buy could have used to enter into China would be to focus on the Five Star brand instead of trying to open Best Buy locations. As we discussed in class, if they had collected better information regarding China’s consumer electronics market, they would have made a better informed decision and therefore not struggled and eventually failed in their endeavors.
Before Best Buy chooses to re-open stores in China they should do the proper research and collect all requisite market intelligence to make an informed decision regarding the Chinese market. As this article points out, it is a surprise that Best Buy is contemplating re-opening these stores. Whether they have learned something new about the Chinese market that will help them succeed the second time around is yet to be seen. I guess all we can do is hope that that they have done their market research and are now making a better informed decision.