The Great Recession and Internet comparison shoppers forced airlines and travel agencies to rapidly revamp their business models or die.
Now consumer electronics giant Best Buy is attempting to transform its business strategy by tapping two prominent executives who reshaped the?travel business.
Hubert Joly, who became Best Buy's new CEO the day after Labor Day, was?viewed by analysts as a surprise choice because he didn't come from the?retail environment.?He was lured to the Best Buy post after serving as the chief executive?of Carlson Wagonlit Travel.
This month, Best Buy hired another travel-industry leader, Scott?Durchslag, who was president of Expedia Worldwide, the world's largest?online travel agency.?Durchslag will be president of Best Buy's Online and Global e-Commerce.
At Carlson and Expedia, Joly and Durchslag needed to define the?different segments of travel consumers, identify what types of services?they wanted, and create revenue streams in a highly competitive industry?that could sustain their businesses.?Expedia differentiated itself from individual airline websites, and?Carlson provided an array of services for corporate travel clients.
Speed is crucial
In the airline and travel industry, speed in management decision-making?is crucial because competitors are changing prices on a daily basis and?constantly upgrading technology options to increase consumer choices.
As Best Buy faces intense competition from online and discount?retailers, the two travel executives are now poised to use the lessons?they learned to try to turn around Best Buy's financial performance.
Heading into the critical holiday shopping season, Best Buy disclosed?Friday that its front-line employees will have the ability to match?prices on Amazon.com and with other competitors. Best Buy also is moving?forward with opening smaller Best Buy Mobile stores to capture customers?who aren't fond of a big-box experience.
While Joly crafts a refined business strategy for Best Buy, he continues?to build his leadership team. The company is searching for a chief?financial officer after announcing last week that CFO James Muehlbauer?would depart by February.
While an executive shuffle is taking place in the corporate offices, the?company's ownership remains uncertain. Best Buy founder Richard Schulze?is still pursuing a buyout of the public company.
Attention to the message
But the company's current management doesn't want to allow Schulze's?actions to dominate news coverage. Best Buy recently hired an?experienced and well-known public relations veteran to join the team?that's shaping Best Buy's transformation message.
Amy von Walter joined Best Buy in September as senior director of?corporate public relations after serving in key communication roles at?Medtronic, HealthPartners and Target. But like Joly and Durchslag, von?Walter also understands the dynamic travel industry. She gained her?insights about airline consumers from a governmental vantage point. She?previously worked for the Metropolitan Airports Commission and the?Transportation Security Administration.
Airline and travel consumers care about product prices, quality of?services, hassle factors and high-quality online sites. In the?electronics arena, Best Buy's customers have similar priorities. Best?Buy's new leaders with travel-industry pedigrees now have the?opportunity to apply their experience to help Best Buy succeed in the?online and bricks-and-mortar worlds.
Fedor can be reached at lfedor@minnpost.com.
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