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A 
SeeMetrics 
Partners’ 
Business 
Case 
Why 
RadioShack 
Will 
Die 
Before 
Its 
100th 
Year 
Anniversary 
1
Introduc6on 
I 
read 
Good 
to 
Great 
by 
Jim 
Collins. 
I 
admire 
the 
companies 
that 
have 
sustained 
growth 
over 
...
When 
RadioShack 
Was 
Good 
Started 
in 
1919 
(which 
means 
I 
believe 
the 
company 
will 
be 
gone 
within 
5 
years)...
When 
RadioShack 
Was 
Good 
1977: 
RadioShack 
introduces 
the 
first 
mass-­‐marketed, 
fully 
assembled 
personal 
comp...
Why 
Safe 
Will 
Make 
You 
Sorry 
RadioShack 
grew 
with 
innova6ons 
and 
breakthrough 
products, 
which 
abruptly 
stop...
Likes 
Don’t 
Equal 
Profits 
As 
of 
September 
8, 
2014 
RadioShack 
2014 
Super 
Bowl 
commercial 
had 
a 
lot 
of 
vie...
Innova6on 
Drives 
Growth 
Before 
we 
say 
adieu 
to 
RadioShack 
and 
with 
my 
business 
mind 
wired 
for 
“winning 
in...
Top 
3 
Innova6ve 
Ideas 
Idea 
#1: 
How 
about 
3D 
prin;ng? 
Why 
not 
put 
a 
3D 
printer 
in 
every 
store? 
With 
you...
Top 
3 
Innova6ve 
Ideas 
Idea 
#2: 
Offer 
“Create 
your 
website 
for 
$199 
in 
60 
minutes 
at 
your 
neighborhood 
Ra...
Top 
3 
Innova6ve 
Ideas 
Idea 
#3: 
Tap 
into 
the 
knowledge 
of 
your 
front 
line 
employees. 
Put 
in 
place 
at 
eac...
Branding 
Isn’t 
Innova6ng 
To 
transform 
RadioShack, 
you 
don’t 
have 
to 
rebrand 
to 
be 
“The 
Shack”. 
You 
don’t 
...
About 
SeeMetrics 
Partners 
Why RadioShack Will Die Before Its 
100th Year Anniversary 
Author: 
Bahaa 
Moukadam, 
CEO 
S...
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RadioShack - Good to Gone

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From 1940 to 1984, RadioShack was innovation leader. Most people don't know that. Most only see RadioShack as a dying brand. On the verge of its 100th Anniversary, Radio Shack is irrelevant. This is a case study on how RadioShack went from Good to Gone.

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RadioShack - Good to Gone

  1. 1. A SeeMetrics Partners’ Business Case Why RadioShack Will Die Before Its 100th Year Anniversary 1
  2. 2. Introduc6on I read Good to Great by Jim Collins. I admire the companies that have sustained growth over many consecu6ve years despite the economic upheavals. However, Circuit City should serve as a warning to the Good company RadioShack. You could easily go from Good to Gone as is the case for Circuit City. It is also likely the case for RadioShack. The cause … A Lack of Innova6on When RadioShack stopped being first-­‐to-­‐market in anything meaningful let alone innova6ve, RadioShack went from good to ‘me too’ to almost gone. 2
  3. 3. When RadioShack Was Good Started in 1919 (which means I believe the company will be gone within 5 years), RadioShack was oUen at the leading edge of new technologies. Don’t believe me? Consider this: 1947: RadioShack opens the first audio showroom to feature speakers, amplifiers, turntables and phonograph cartridges. 1959: Tandy Corp. (RadioShack has previously renamed itself Tandy Corp.) sells its first Realis6c CB radio. 1972: The Company sells its first all-­‐electronic calculator. And It Goes On… 3
  4. 4. When RadioShack Was Good 1977: RadioShack introduces the first mass-­‐marketed, fully assembled personal computer, the TRS-­‐80, with a Level II BASIC opera6ng system created by Bill Gates. The TRS-­‐80 is warmly remembered in the technology community to this day; by the 1980s, RadioShack comes to be known as "the biggest name in lible computers." 1983: The Company introduces the "Model 100" laptop, the first of its kind in the computer industry. 1984: RadioShack sells its first mobile phone. RadioShack was the defini6on of an innovator, pushing to find the next breakthrough product customers wanted. And then it all changed. No more breakthroughs, no more innova6on, just me too’s. RadioShack shiUed its energies from innova6on to sustainment. They Started to Play it Safe… 4
  5. 5. Why Safe Will Make You Sorry RadioShack grew with innova6ons and breakthrough products, which abruptly stopped in 1984. Milestones aUer 1984 have been devoid of any significant innova6ons. RadioShack became a me-­‐too store “following” electronic consumer trends. With the launch of the Super Bowl commercial in 2014, RadioShack announced to the world they were making big changes. They made fun of their 1980’s look as if there was something wrong with their stores in the 1980s. There was nothing wrong with their stores in the 1980s. The problem was RadioShack stopped innova6ng in 1984 and they are s6ll not innova6ng. RadioShack Became Just a Follower… 5
  6. 6. Likes Don’t Equal Profits As of September 8, 2014 RadioShack 2014 Super Bowl commercial had a lot of views and likes on YouTube: • 617, 158 Views and coun6ng • 2,458 Thumbs Ups vs. 90 Thumbs Down They claimed they were back to their innova6ve ways. But where was the innova6on? How are they different? Where are the breakthrough products? Aren’t they just a smaller version of Best Buy? They can fool themselves, but the numbers don’t lie. In the quarter ending June 30, 2014, (four months aUer their Super Bowl commercial) RadioShacks reported • A quarterly revenues decline of $111.7 MM or 14% • An opera6ng loss of $80.1 MM compared to a loss of $10.3 MM from a year ago RadioShack Is S6ll Just a Follower… 6
  7. 7. Innova6on Drives Growth Before we say adieu to RadioShack and with my business mind wired for “winning in spite of everything”, let us ask ourselves, “what can be done to save RadioShack in spite of all of the challenges”? The answer is Innova6on. The Board, CEO, and Execu6ve Team of RadioShack need to go retro and rediscover their innova6on soul now or die. They need to get out of the “me-­‐too” death spiral and stop following trends. They need to stop selling only what customers can buy elsewhere more conveniently. Now, I will be the first to admit that it is easy to cri6cize and much harder to contribute. Here are my Top 3 innova6ve ideas to the Execu6ves of RadioShack to help transform RadioShack … From a Follower into an Innovator. 7
  8. 8. Top 3 Innova6ve Ideas Idea #1: How about 3D prin;ng? Why not put a 3D printer in every store? With your highly technical sales people, you can make RadioShack the des6na6on for help with the newest technological products? Make it simple for anyone to come in and learn about, feel, touch, create things with your 3D printers. Why haven’t you owned the 3D prin6ng service market? Remember Kinkos! Apply the same concept to 3D prin6ng. 8 Lead don’t Follow…
  9. 9. Top 3 Innova6ve Ideas Idea #2: Offer “Create your website for $199 in 60 minutes at your neighborhood RadioShack”. You can show them how. Leverage technological advancements and apply it to solve real world problems and offer things people need, are willing to pay for, and can’t easily get somewhere else. Use your brick and mortar loca6ons. People want to touch and be able to be with other people to learn. 9 Offer Unique and Needed Solu6ons…
  10. 10. Top 3 Innova6ve Ideas Idea #3: Tap into the knowledge of your front line employees. Put in place at each storefront an employee input collec6on, analysis and synthesis to uncover opportuni6es and obstacles. One of the ques6ons to store employees should be “what is the strangest customer request you got today?” Yes, collect this daily from all of your 4000 stores to find your #3, #4, #5, #6,… innova6on. Now, flow that informa6on back to your customers to learn more. Use the power of your employee network and the strengths of technology to collect, learn, and refine. The innova6ve ideas are all around us. You just have to be … Willing to Tap into the Collec6ve Intelligence 10
  11. 11. Branding Isn’t Innova6ng To transform RadioShack, you don’t have to rebrand to be “The Shack”. You don’t have to spend millions simply renova6ng stores, you need to have real innova6ons. Stop thinking about what your compe6tors are doing. Stop boohooing about economic condi6ons. Think about what your customers will want and be able to pay for now and in the future. Get back into the innova6ve space and stop riding the wave that is dying. Swim out a lible further and catch a new wave. The Super Bowl commercial mocks how the 80’s want their store back; but RadioShack needs to learn from its innova6ve history of the 40’s, 50’s, 60’s, 70’s and 80’s. We all need to rediscover the innova6on gene for the 21st century or become a footnote of a company that was once something special. Never forgot, without innova6ons it is easy to go … From Good To Gone. 11
  12. 12. About SeeMetrics Partners Why RadioShack Will Die Before Its 100th Year Anniversary Author: Bahaa Moukadam, CEO SeeMetrics Partners Bahaa Moukadam is a successful turn-­‐around consultant and execu6ve leadership and development coach. Bahaa specializes in helping execu6ves close the gap between strategy and results. 12

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