Any company that thinks opening a store in China will
automatically bring riches is dead wrong.
Best Buy lowered
its expansion plans in China. Best Buy now expects
to open 8 to 16 Five Star stores and one to three Best Buy stores in 2008. That’s down from its previous goal of 20 to
25 Five Star openings and five to eight Best Buy openings.
Best Buy blames slow government approval but I believe the truth is that its business model of not paying commissions
to salespeople is the root of its problems in China.
