Best Buy

The mass-market electronics business is a notoriously difficult nut to crack. Aggressive competition from players like Circuit City is only half the battle. Discounters like Wal-Mart and slightly more upscale venues like Target are eager to gain a piece of the market. And when traditional powerhouses like Radio Shack enter the mix, consumers have enormous options and retailers have significant competition.

The entire business model has changed significantly due to all this competition. What once would have been blockbuster models are transformed into loss leaders. Best Buy can't undercut competition from Wal-Mart when Wal-Mart cuts prices on game systems so low that droves of customers literally crush each other in a mad stampede to get the hottest new product.

Yet the rewards for winning the competition for this sector of retail are especially rich. Best Buy can afford to heavily saturate its stores with sales personnel. While Wal-Mart's customers are left to their own devices, customers at Best Buy need to fight past waves of employees just to reach the merchandise. And in a complicated field like electronics, many customers really appreciate this approach.

While competitors like Circuit City have repeatedly disrespected and underpaid their employees, Best Buy has created an employment paradise. And consumers ultimately benefit.