Magnolia Hi-Fi and Strong
When, in 2000, Magnolia experienced one of its biggest changes—its acquisition by Best Buy—Tweten knew that it was a logical move, even if critics had doubts. He said the goal was to stay independent while absorbing the big chain's greatest financial and managerial assets. Now, Tweten is assured that Magnolia Hi-Fi is more secure and more independent than ever. In fact, it's been honored by TV Guide's Hall of Fame, not to mention Dealerscope's own Pride Award.
Fusing with Best Buy "allowed us to expand our own brand with new marketing," said Tweten. "It promoted capital growth." He also said that Best Buy's presence keeps costs down. "It provided more opportunity for real estate development, better locations and a lot of back-end efficiencies that the customer never sees. But we still maintain our independence as far as marketing and demand from our suppliers." While someone might go to Best Buy for a sale-priced DVD player, someone else will go to Magnolia for either a higher-end version of that or, quite frankly, a complete, customized home theater system.