Crazy Eddie, Inc. Case Study
Case Summary
The Crazy Eddie, Inc. case reveals the success story of the retailer and critical factors that resulted in dismal performance and bankruptcy. In 1969 Eddie Antar a 21 years old high school dropout started his Crazy Eddie “empire” right here in Brooklyn on Kings Highway. Despite its modest beginning, the business grew tremendously to dominate the New York electronics retail market. By 1989 Crazy Eddie Inc. had 43 outlets in four states (New York, Connecticut, New Jersey and Pennsylvania), over $350 million sales, and outstanding stock worth more than $600 million. Success resulted mainly from the owner’s efforts to expand store outlets and stock every kind of electronic products such as televisions, …show more content…
If a customer attempted to leave the store, Eddie would lock the door and negotiate with the customer until they both arrive at an agreed upon price. Crazy Eddie sold products at lower prices compared to competitors, but there was a catch to Crazy Eddie’s “unbeatable” or his “insane” prices. Eddy and his salesperson’s scammed customers by pressuring them to purchase extended product warranties, when in fact all this money went into Eddie’s pocket because the merchandise already had a factory warranty and therefore, cost nothing to be repair. The company also promises a refund in the difference in price within 30 days if a customer find the same merchandise purchased elsewhere at a lower …show more content…
The price of the stock went through the roof; Eddie convinced financial analysts and the investment community that that his company’s financials was in good standing and they all believed it and gave great reviews about Crazy Eddie Inc. He would often invite financial analysis to his stores to show them how effective his company was operating, because of all this and the company’s “seemly success” Crazy Eddie’s initial investors received 1000% increase in their investments. During the mid-1980’s Crazy Eddie’s stock was one of the best investments on Wall
Case Summary
The Crazy Eddie, Inc. case reveals the success story of the retailer and critical factors that resulted in dismal performance and bankruptcy. In 1969 Eddie Antar a 21 years old high school dropout started his Crazy Eddie “empire” right here in Brooklyn on Kings Highway. Despite its modest beginning, the business grew tremendously to dominate the New York electronics retail market. By 1989 Crazy Eddie Inc. had 43 outlets in four states (New York, Connecticut, New Jersey and Pennsylvania), over $350 million sales, and outstanding stock worth more than $600 million. Success resulted mainly from the owner’s efforts to expand store outlets and stock every kind of electronic products such as televisions, …show more content…
If a customer attempted to leave the store, Eddie would lock the door and negotiate with the customer until they both arrive at an agreed upon price. Crazy Eddie sold products at lower prices compared to competitors, but there was a catch to Crazy Eddie’s “unbeatable” or his “insane” prices. Eddy and his salesperson’s scammed customers by pressuring them to purchase extended product warranties, when in fact all this money went into Eddie’s pocket because the merchandise already had a factory warranty and therefore, cost nothing to be repair. The company also promises a refund in the difference in price within 30 days if a customer find the same merchandise purchased elsewhere at a lower …show more content…
The price of the stock went through the roof; Eddie convinced financial analysts and the investment community that that his company’s financials was in good standing and they all believed it and gave great reviews about Crazy Eddie Inc. He would often invite financial analysis to his stores to show them how effective his company was operating, because of all this and the company’s “seemly success” Crazy Eddie’s initial investors received 1000% increase in their investments. During the mid-1980’s Crazy Eddie’s stock was one of the best investments on Wall