Presented by: Jason ComackAnthony FungRenny Saldanha

Date: December 12, 2013Professor: Alan Barnett

Agenda

Mission Statement

Company History Management Team

Where They Are? Retail Mix

KPI and Financials

Competition

Where Are They Going? Strategy

Repositioning

Rebranding

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.”

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.

Recent CEOsJoseph 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

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

Where They Are: Perceptual Map

Pricing

Service

Product Segmentation

Sales and share of revenue increase in both Mobility and Signature platform

Rapid decline in Consumer electronics

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,

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

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

Competitors Consumer electronics retail stores

Big-box retailers

Large specialty retailers

Discount and warehouse retailers

Internet retailers

Wireless service providers’ retailers

The Need To Change

Declining Net Income Changing Landscape Financial Trouble Decline in Demand Declining Comp Store Sales

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%

Strategies

1. Reposition the Brand2. Revamp product assortment3. Reinvigorate the Store Experience4. Operational Efficiency5. Financial Flexibility

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 monthBuying Reasons- Late adopters , Need to have gadgets that everyone is talking about

Psychographics:Tech SavvyRisk-takers

Avid socializers

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

Store Design

RebrandingLogo Change

2001-2009

2009-2011

2011-2013

2013

New Website

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

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