The mobile phone retailer Carphone Warehouse is Europe’s largest independent mobile phone retailer, as well as broadband, mobile and landline service provider. Carphone Warehouse has grown to over 2500 retail stores established in eleven countries as the Phone House. The company co-founded in 1989 marketed portable phones that were too bulky to carry, and were termed as car phones by the current CEO, Charles Dunstone (Ward-Dutton 2-3). The purpose of this evaluative report is to identify a major change implemented by the non-grocery retailer, and assess its implications on the company’s present market performance.
In the highly competitive environment of a saturated mobile phone marketplace, Carphone Warehouse has developed its concept of a longer mobile life, targeting a long-term relationship of customers with the brand and the company (Butterfield 78). However it has realized that a truly market-driven enterprise takes into consideration its own employees first, to meet customer satisfaction objectives (Hines & Bruce 75).
The main reason for change in retail business operations was the poor economic climate of recession and inflation which created a market slowdown in mobile purchases. However, it is important to note that, in a buoyant market all the competitors in the industry can do well “and innovators are easily copied” (Annual Report, 2009 p.6). Hence, to be the industry leader and to counter its declining market performance, the company increasingly focused on its growth avenues by developing the existing retail proposition through its merger in June, 2008 with the U.S. electronic retailer Best Buy, leading to the launch of Big Box consumer electronics stores in Europe, and wider establishment of Carphone Warehouse’s United States franchise Best Buy Mobile stores. “In return Carphone Warehouse launched Best Buy’s Geek Squad