Forget the dog and pony sideshow. Do something meaningful now, if nothing else, to raise the price Richard Schulze must pay to take Best Buy private, assuming he can get it done.
Best Buy actually has the tools in place to innovate and get itself out of this mess. Its board simply has to pull its collective head out and act because, ultimately, it has complete control over the situation.
Keeping Best Buy alive has very little to do with what we think we know about retail. That label -- "retail" -- exists only because it makes it easy for us to define the practice of peddling stuff to consumers. If you have anything that even resembles a retail mindset, Best Buy should not be the place for you.I have already established what a horrible move Best Buy made when it said vive la Joly and hired a SWOT analysis consultant as CEO. Step one in righting the ship: Fire Joly immediately and then be honest: The Best Buy board should tell investors it overpaid millions for what wasn't even a very good PowerPoint presentation by Joly at the company's recent investor day. Investors appreciate that type of honesty. Ask Patrick Doyle at Domino's Pizza (DPZ - Get Report) about how to execute a tech turnaround in retail. The guy is absolutely not a loser CEO. Step two: Name Stephen Gillett, currently a Best Buy President, CEO. Give him free reign to spend the dollars -- like Marissa Mayer has at Yahoo! (YHOO - Get Report) -- to assemble a tech and marketing team for the ages at the company. He should be able to pick through current Best Buy staffers and keep only those willing to purge all scent of old-school retail from their blood. Step three: Stop this fantasy of competition with Amazon.com (AMZN - Get Report). Jeff Bezos handed Best Buy its buttocks about a decade ago. Best Buy never actually fought the battle, but it was lost. Five, 10 years ago the answer might have been to beef up your digital presence, make stores smaller and focus on customer service. That's not the answer now. You're too far behind. That approach absolutely cannot work.