New England Consumer Electronics Market

1056 Words Oct 23rd, 2014 5 Pages
Tweeter etc. is a small, upscale New England retailer of consumer electronics that was founded by Sandy Bloomberg in 1972. During that time, there were two major retailers in Boston, Tech Hi-fi and Lechmere. To avoid direct confrontation, Bloomberg focused on the student market and emphasize a lot more on sophisticated tastes for higher quality stereo components. As time pass by, Tweeter build up their reputation and the public consider the company as a retailer of “high quality, high-end audio components and video equipment, with knowledgeable salespeople who offered high levels of customer service”. Shortly by 1979, Tweeter had expanded to six stores in the Boston area and one in Rhode Island. The demand for high-end stereo and video equipment market had continued to grow through the 80s and by 1986; Tweeter had expanded to thirteen stores. “Tweeter’s share of the New England consumer electronics market had grown to almost 2% overall, and close to 5% in the Boston area.” However, there are a few factors that cause an overall decline in the New England electronics market in the late 1980s and early 1990s. One of the main factors was the excessive amount of new competitors entries at the lower end of the retail market. To react to the problem, Lechmere took the lead and initiated an ongoing series of weekend sales. The campaign is to cut prices on selected product during the weekend. In order to stay competitive in the market, Tweeter and other major retailer followed…
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