Tweeter regroups as it struggles to compete with Best Buy, Circuit City

Posted Feb 2nd 2007 2:17PM by Brian White
Filed under: Rumors, Competitive Strategy, Best Buy (BBY), Circuit City Stores (CC)

Tweeter Home Entertainment Group Inc. (NASDAQ:TWTR) is trying to ease out of the line of fire in a flat-panel television price war that erupted over the holidays and is extending through Super Bowl Sunday.

Recently, Tweeter has seen its share price plummet as it has struggled to match all these TV price cuts by the big boys. The solution? How about getting out of the low-end flat TV market and focusing on custom home electronics installation and higher-end sets? This is a way to differentiate yourself from the mass merchants and entry-level flat-panel TV peddlers, that is for sure.

In fact, Tweeter's CEO said that the retailer will focus on mid- to upper-range TV sets this year -- and will eventually exit the low-end flat TV market completely. Will customers care or respond? Probably not. And those that shop for flat-panel TVs will continue to go to Wal-Mart Stores, Inc. (NYSE:WMT) while style and quality-conscious shoppers will continue shopping Tweeter.

Tags: BBY, BGest Buy, BgestBuy, CC, Circuit City, CircuitCity, Tweeter