Leadership Series – #2

Posted by on Mar 14, 2018 in Levin Consulting Blog | No Comments

Time for the first example of Great CE Leadership – that of Dick Schulze and his incredible transformation of Best Buy in the 1980s. Traditional CE Retail at that time was all about advertising “loss leaders” and then using a commissioned sales force to step customers up to something that was profitable for the retailer. Dick focused on where the customer was going (most retailers were keying on how they could make money and were not customer-centric), where consumers would not feel pressured, creating a model where it was a complete non-commissioned sales force (the blue shirts), all there to help the consumer choose what would be best for them. No pressure to sell off the “on ad” items – what a concept! Concept IV was born, with Dick and Brad Anderson turning the industry upside down (goodbye Circuit City – though it took a few years). And they realized that they needed to drive traffic – using media (CDs, movies and software) to do the trick. Dick and Brad recognized that traditional CE was dying – they needed other items to drive traffic and bring new and younger consumers into their stores – a message that most other CE Retailers never managed to convey. That’s leadership – going where the consumer is headed and not trying to live in the past. Leadership Post #2 – 03122018