Tweeter analysis

Good Essays
Topics: Marketing, Pricing, Sales
Tweeter is an audio and video consumer electronics retailer that started in New England and had annual sales of $82 million in 1996 being a 21-store chain. Sandy Bloomberg, founder and CEO of Tweeter attributed the growth of Tweeter to its “Automatic Price protection” policy, which was implemented in 1993 and will be discussed in the case further.
This case looks into the impact of the policy on Tweeter’s performance in a market that was increasingly becoming dominated by large discount retailers, and also its effect on the expansion plans of Tweeter outside New England. The other points to be discussed will be the strategy of Tweeter going forward to tackle the price competition due to rivals like, Lechmere, Circuit City and the Wiz.

Problem Identification
Tweeter was in a market that was highly competitive and it faced many challenges to sustain itself ranging from price wars to unexpected value perception by the customers, uncertainty about its APP policy to threats from new entrants. But the major problems can be listed as follows,
- Difference in the value perception of the customer and that being offered by Tweeter
- Despite of having competitive prices, why is large amount being returned through Automatic price protection (APP)
- Evaluate the impact of APP strategy on Bryn Mawr
- Threat from new entrants like Wiz into the New England market

Analysis
First we will carry out a SWOT analysis for Tweeter in the current market conditions. Secondly, we will see the impact of APP on the buying behavior of the customers. We will analyze the data provided in the various case exhibits and provide recommendations for Tweeter’s future strategy.

SWOT Analysis

Tweeter started its venture with medium to high-end audio and video equipment and components. The customers perceived it as a high quality retailer with knowledgeable sales people who offered high level of customer service. But the competitors’ strategy was to capture the

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