RadioShack has struggled financially in recent years with declining sales and net income. To address these challenges, the company's new CEO has developed a turnaround strategy focused on repositioning the brand, revamping the product assortment, reinvigorating the in-store experience, improving operational efficiency, and gaining financial flexibility. Key elements of the strategy include targeting tech-savvy younger customers, redesigning stores to be more interactive and playful, and changing the company's logo and brand image. However, there is uncertainty whether these significant changes can be successful in reversing RadioShack's financial declines given competitive pressures.

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

7. Where They Are:
Perceptual Map
Pricing
Service

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

14. Key Performance Indicators
- Comparison
($000)
RadioShack
Corporation
Fiscal Year Q2 2013 Q1 2013 2012 2011 2010 2009 2008
Sales 844,500 849,000 4,257,800 4,378,000 4,265,800 4,073,600 4,034,800
GM % 37.16% 39.73% 36.68% 41.36% 44.86% 45.98% 42.95%
Comp Str % 1.30% -5.70% -3.50% -2.20% 4.10% 0.80% 0.90%
Op Inc % -2.74% -0.08% 0.77% 5.33% 10.08% 10.75% 7.35%
Best Buy
Fiscal Year Q2 2013 Q1 2013 2012-11mo 2011-11mo 2010 2009 2008
Sales 9,300,000 9,380,000 45,085,000 46,064,000 49,747,000 49,243,000 44,737,000
GM % 26.55% 23.13% 23.62% 24.64% 25.21% 25.50% 24.40%
Comp Str % -0.60% -1.30% -2.90% -1.60% -1.80% 0.60% -1.30%
Op Inc % 4.52% 1.86% 2.54% 4.37% 5.05% 6.00% 4.70%

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

18. Store Design

20. Rebranding
Logo Change
 2001-2009
 2009-2011
 2011-2013
 2013
New Website

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

22. References
 http://ir.radioshackcorporation.com/phoenix.zhtml?c=84525&p=irol-
reportsannual
 http://www.engadget.com/2013/01/14/radioshacks-target-mobile-april-8th/
 http://www.bloomberg.com/news/2013-10-22/radioshack-posts-loss-agrees-to-
835-million-financing.html
 http://www.fool.com/investing/general/2013/04/27/radioshacks-turnaround-
plan-has-a-glimmer-of-hope.aspx
 http://www.trefis.com/stock/rsh/articles/212715/oct-22radioshacks-turnaround-
initiative-fails-to-impress-so-far/2013-10-23
 http://ir.radioshackcorporation.com/phoenix.zhtml?c=84525&p=irol-
reportsannual
 http://www.engadget.com/2013/01/14/radioshacks-target-mobile-april-8th/
 http://www.bloomberg.com/news/2013-10-22/radioshack-posts-loss-agrees-to-
835-million-financing.html
 http://www.fool.com/investing/general/2013/04/27/radioshacks-turnaround-
plan-has-a-glimmer-of-hope.aspx
 http://www.trefis.com/stock/rsh/articles/212715/oct-22radioshacks-turnaround-
initiative-fails-to-impress-so-far/2013-10-23