Carphone Warehouse/Best Buy alliance, what it means for the rest of us

Charles Dunstone, one of the most successful UK entrepreneurs in the recent years, has mastered a market changing deal with the US-based Best Buy partnership announced last week.

The money that Best Buy has effectively injected in the business will almost certainly be used to expand the business both organically and through acquisitions.

This could also soon turn CPW into one of the largest consumer electronic retailers rivalling the likes of DSG International, Metro and Kesa, the owner of the Comet Group.

Although the deal has raised some concerns amongst analysts who see the consumer electronics retailing sector as one under extreme pressure, others are quick to say that CPW mae the right choice, especially as it looks to expand overseas.

The company has already expressed an interest in Tiscali and the purchase of the ISP's UK arm would expand Carphone Warehouse share of the market to 30 percent.

By diversifying its business, CPW reduces risks associated with its main business core, mobile telephony, which has been bruised by new entrants such as Tesco.

It also shows that there's still life in high street stores, an approach that collides with e-tailers like Ebuyer or Newegg which looks to cut costs and reduce stock.

Both Best Buy and CPW already have substantial brick-and-mortar presence in US and UK and more supermarket like stores are not to be excluded in a near future.

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