1. Presented by: Jason Comack
Anthony Fung
Renny Saldanha
Date: December 12, 2013
Professor: Alan Barnett
2. Agenda
Mission Statement
Company History
Management Team
Where They Are?
Retail Mix
KPI and Financials
Competition
Where Are They Going?
Strategy
Repositioning
Rebranding
3. Mission Statement
“RadioShack has a customer-oriented
approach, which combines a carefully
selected product assortment with a
convenient, small-store format and
highly personalized service. Over the
years, this approach has enabled
RadioShack to stay at the forefront of
the rapidly evolving consumer
electronics market and to remain
relevant to consumers in every era.”
4. History
1919: Two friends start the Hinckley-Tandy Leather Company in Fort Worth,
Texas.
1921: Two brothers open the first "Radio Shack" in Boston, a small retail
and mail-order business supplying ship radio equipment and "ham" radios.
1935: A predecessor of present-day RadioShack Corp. lists its shares for
trading on the NYSE.
1959: Charles Tandy is elected as chairman of the board.
1963: Tandy acquires Boston-based "Radio Shack.“
1983: RadioShack introduces the "Model 100" laptop, the first of its kind in
the computer industry.
2000: Tandy Corp. changes its name to RadioShack Corp.
2005: RadioShack becomes an Authorized Apple Reseller and later
introduces Skype-certified hardware and software in stores for free voice-
and video-calling over the Web.
5. Recent CEOs
Joseph Magnacca: 2013.Feb CEO of RadioShack
2011-2012 EVP of Walgreen
2008-2011 CMO of Duane Reade
2001-2008 Shopper Drug Mart
James Gooch: 2011-2013 CEO of RadioShack
2006-2011 CFO of RadioShack
1996-2006 Controller KMART/Sears
Julian Day: 2006-2011 CEO/Chair of RadioShack
2004-2006 Director of Sears Holding
2003-2004 CEO of Kmart
2002-2003 COO Kmart
1999-2002 CFO COO Sears
6. Change in Executive Team
Year of
Service
CEO COO Marketing Merchandise CFO Controller CIO Supply Chain HR
2004 Roberts Edmondson Newman Johnson Follit
2005 Edmondson Babroski Barnes Johnson Follit
2005 Babroski Babroski Hamilton Lowzinski Gooch Johnson Kinzey Ripperton
2006 Day Formichelli Hamilton Lowzinski Gooch Johnson Kinzey Ripperton
2007 Day Formichelli Killinski Whitsett Gooch Moad Kinzey Ripperton
2008 Day Bevin Applbaum Whitsett Gooch Moad Kinzey Ripperton
2009 Day Bevin Applbaum Applbaum Gooch Moad Stufflebeme Ripperton
2010 Day Bevin Applbaum Young Gooch Moad Stufflebeme Ripperton Doran
2011 Gooch Dinkens Applbaum Young Lively Moad Stufflebeme Ripperton Doran
2012 Gooch Dinkens Applbaum Young Lively Moad Stufflebeme Ripperton Doran
2013 Magnacca Risch Long Long Lively Moad Stufflebeme Risch Jefferies
8. Product Segmentation
Sales and share of revenue
increase in both Mobility and
Signature platform
Rapid decline in Consumer
electronics
9. Product Platforms
Mobility platform
Postpaid and prepaid wireless handsets tablet
devices, and e-readers.
Signature platform
Home entertainment, wireless, computer,
music accessories, power products,
headphones; technical products and services.
Consumer electronics
Laptop computers, personal computing
products, digital music players, residential
telephones, GPS devices, cameras, and
digital televisions,
10. Focus on Mobility
Comparability of carriers service plans
and handsets
Knowledgeable and friendly staff
Free contact swap
Free lifetime product support
Trade & Save program
Mobile Low Price Guarantee
Competitive prices on devices
Accessories power, protect and
personalize handsets
11. Retail Locations: Stores,
Kiosks, Dealer Outlet
Avg Store
Size
U.S. RadioShack
company-operated
stores (1) 2,464 sqft
Target Mobile centers (2) 16 sqft
12. Competitors
Consumer electronics retail stores
Big-box retailers
Large specialty retailers
Discount and warehouse retailers
Internet retailers
Wireless service providers’ retailers
13. The Need To Change
Declining Net Income
Changing Landscape
Financial Trouble
Decline in Demand
Declining Comp Store Sales
15. Strategies
1. Reposition the Brand
2. Revamp product assortment
3. Reinvigorate the Store
Experience
4. Operational Efficiency
5. Financial Flexibility
16. Strategy: Target Market
Demographics:
Age: 16- 35, Male & Female
Income: Medium
Education: High School and above
Residence: Urban often Renters
"The store aims
to attract tech-
hungry shoppers
who will find a
new level of
products, service
and excitement in
a store that
makes the buying
experience fun."
Buying Behaviour:
Frequency- 8-10 visits a month
Buying Reasons- Late adopters , Need
to have gadgets that everyone is
talking about
Psychographics:
Tech Savvy
Risk-takers
Avid socializers
17. Strategy: Store Design
Concept Stores
Will feature new merchandise, cleaner display and new slogan “Let’s
Play”
upgraded shopping experience
new look
interactive areas
designed to help shoppers improve their technology profile.
Interactive displays that enable shoppers to find and compare
products
Technology that makes shopping interesting and playful
Newly configured displays highlighting in-demand brands
A Do-It-Yourself area where consumers can plan projects
21. Conclusion
Will It Work?
Does New Target Customer Make Sense?
Can they change the brand perception?
Pressure from investors
Running out of time and money
Moving into saturated market
Concept Stores
Apple, Microsoft, Sony