If you were the CEO of Radio Shack, what would you do?
Too_Many_Tools
Posts: 765
I would like this discussion to be about what you think Radio Shack had done right...and what it has done wrong.
Considering that the company is on the ropes, any future efforts are critical to its survival.
So let's hear it...if you were the CEO of Radio Shack, how would you run the company?
Thanks
Considering that the company is on the ropes, any future efforts are critical to its survival.
So let's hear it...if you were the CEO of Radio Shack, how would you run the company?
Thanks
Comments
http://forums.parallax.com/showthread.php/149327-RadioShack-Pushes-to-Clear-Inventory?p=1204744&viewfull=1#post1204744
And same idea here:
http://forums.parallax.com/showthread.php/145766-RadioShack-to-close-up-to-550-stores?p=1161366&viewfull=1#post1161366
I might as well suggest they start selling homemade ice cream, tho.
Pull the cord!
How about a product line of tatooing equipment, inks, and working art supplies?
Also a product line of DIY gunsmithing and ammunition supply?
After all, Radio Shack has nation-wide locations, they are just not fulfilling the current demands of their local markets.
oh... I almost forgot, they can get into the specialty cake decoration supply business as well.
Loopy, you're definitely on the right track with this. In fact, why not combine the tattooing thing with the gun thing and provide some DIY piercing systems.
After all, you haven't really been pierced unless you've done it to yourself with a 0.357 magnum.
I'm thinking this time I'll do my foot.
Sell all company owned real-estate to the guy who bought K-Mart, close all retail outlets, make a special share-holder dividend, take the company private, change the name to "You Don't Need to Shack-up to Own a Cell Phone Radio" or buy SparkFun (whatever is easiest).
It seems that RS has tried the foot thing many times already.
Close every store that's in a mall. Radio Shack can't afford that kind of rent.
Get a copy of a Radio Shack catalog from the late 80s to early 90s. Take a long hard look at it and engage brain.
Personally, I think their situation is nearly hopeless.
... That seems to be the crutch of it right there. RS started out selling leather and tools for working with leather for the "DIY-Cowboy" because that was the trend and sign of the times.... then came along computers, and the (owner at the time) had a vision that propelled "Tandy Leather Company" to follow the current trend for the "DIY-Radio and Electronics" .... This was successful for a long time because they did not forget the basics. They continued trying to follow the current trend for the "DIY-Computer" and "DIY-Cellphone" crowd, but the market was too fast for them to keep up, and they lost their footing with the "DIY-Cowboy" way of thinking and the "DIY-Radio and Electronics" enthusiasm and they (RS) gradually took all of our "creative building block" toys away that we could physically hold in our hand and mentally piece together to build some of our projects right there in the store completely inside of our mind. <- THAT is the essence we all need to be brought back.
Make more books in the Mimms vein. Build a raprap from parts, build a quad copter from parts. Build it from parts, here's a kit.
Pretty straight forward and simple if you ask me. Which is why I'm not in business....
I had not been in a Radio Shack for YEARS since they dumped the DIY stuff...I don't need another phone/televison/camera.
Before that I was a regular loyal customer for DECADES and DECADES.
Then recently I needed to solder some wires in my furnace...needed some solder..all I had around was some fine guage no lead solder..couldn't get a good joint to save my soul.
Hmm...where do I go get good old lead solder..Lowes..nope, Home Depot..nope...Sears...nope..okay this is getting old..ahh..Ace Hardware..they had it, I got it, job done, furnace works, wife happy, I'm a hero.
About a month later I had an hour to kill so I walked into Radio Shack to see what they had turned into.
Well what do you know...they have lead solder.
Then it dawned on me <light bulb above my head comes on>...I hadn't even considered them when I was looking for lead solder earlier in the year...even after being a loyal and regular customer for DECADES.
In my opinion that is the underlying problem that Radio Shack has...they have lost their old customer base and have not built a new one to replace it.
So what could be their customer base...one that would return a good profit for Radio Shack?
Selling "boxes" of phones, cameras, televisions seems to be a road to nowhere...Amazon is cleaning house on brick and mortar retailers..Best Buy is struggling...Circuit City is history..and Walmart/Target are squaring off to be the main street sources for "boxes".
While I doubt a DIY only format would be profitable in itself (as has been mentioned the Do-It-Yourselfer seems to be an endangered species) I can see a Radio Shack that has the speciality items working....almost an "Ace Hardware" of electronics..WITH EDUCATED STAFF. While the DIY customer base had dwindled, it has been replaced with people who have little clue as to what they need..they need advice along with that item they will buy...that is where I think Radio Shack path needs to lie.
Another is to actually carry what the big box stores don't...PARTS... An example..I purchased a current version net book for a friend in Africa..needed another battery for it so he would have an extra..had to have it NOW to beat a shipping deadline...I ended up buying another net book just for the battery. None of the retailers big and small including the battery stores had anything...they just want to sell you another "box"...no parts, no service...just a "box".
A side story...knowing that the computer was going to Africa, the salesman at Best Buy wanted to sell me a multi year in home service warranty for the netbook..I asked him did that mean he would go to the hut in the jungle of Africa to do the warranty work...LOL..I really shouldn't pick on the salemen.
So maybe I am blinded by the past but it would seem many of the old ways of Radio Shack would work to their advantage today while the big box stores are in a race to the bottom to sell you their latest "big box"...and the accompanying warranty plan ...even if it is headed to Africa.
I'm sure Forrest would like that, too. Problem is, I do think that the number of DIYers has gone down since the 1970s and 80s when his books first came out. I worked at an RS (in West Seattle; I think it's still there) for six months in the late 70s, and learned everything I ever wanted to know about the chain in that time. Back then, maybe a full third of the customers went straight to the back for the parts. These days, when I'm in an RS store, I may spend 20 minutes looking for the things I need, and NOT ONE other customer is rifling through the parts drawers or shelves.
My five or six books published by Radio Shack didn't do the numbers that Forrest's did, but by the late 1990s, even my big seller on building speaker systems had seen the end of the road. Only the true die-hards make their own speaker enclosures now. It's become something of a lost art.
I was commenting to my wife the other day that in the 40s and 50s all the "mechanics magazines" that I collect (Popular Science, Popular Mechanics, Science & Mechanics, and Mechanix Illustrated) had articles about building some project or other using a lathe. Back then it was common for garage shops to have lathes. They're quite uncommon today, and none of the magazines have these types of projects in them now. (To be fair, only two of the four are still in print, which also tells you something right there.)
I'm crossing my fingers that 3D machines will become the lathe of the 40s and 50s. They'll be so ubiquitous the magazines will carry project articles in them every month. That could be start to the return to DIY Valhalla.
Then I left empty handed because they didn't have what I needed.
If I need something uncommon quickly, I go to Mendelsons. "Mendelsons Liquidation Outlet. The first place to look for every last thing!"
I too am a BIG fan of the mags of the 40s and 50s...the golden age of the mechanical DIYer.
As for 3D printers...I have mixed feelings about them. FWIW..I would have few uses for one. I consider what I buy over the year and a 3D printer would not affect those buying habits.
Now in the workshop it would be a different story in regards to plastic components..but I see 3D printers as the modern day foundry where you would create complex plastic shapes. It would still not replace many of the parts I make from metals.
Agreed, and there's more to add to this mixture of tools of innovation: CNC routers and laser cutters. It really takes a small assortment of computer-controlled tools to create enough excitement for magazines and media to take interest in my view. You could probably ask Larry Lemieux his input on the subject. Schools are adding this hardware right now in their Engineering Technology courses as an adjunct to meeting California's common core standards. I think the 3D printer is really valuable when combined with a couple more computer-controlled tools so every solution isn't squeezed into a 3D printer.
OTOH, as Joe BJT, I'd love the company to survive and continue to supply components and tools. Perhaps they could even add Red Line 2-stroke oil to their shelves.
But for a person that started with analog electronic theory and has had to additionally acquire digital theory, the challenge to keep up and DIY new things has gotten increasingly difficult. There is simply less that one can get one's hands on physically.
Added is the desire to sell proprietary 'intellectual property' without providing a dialog about the inner workings of the next great corporate cash-cow, it is hard to get one's mind engaged as well.
The user is forced to buy a gadget and use it as the 'puppet masters' deem fit. And to pay a lot extra to add programs to such a device.
All these factors make it into what appears to be an end game for Radio Shack... likely a Chapter 11 filling.
Meanwhile George Soros has purchased 10% of J.C. Penny's stock as he thinks he can participate in a great turn-around in the USA retail market.
Personally, I can not see him doing well in this. The internet has changed shopping for the reasonable future. Malls add expensive overhead to the cost of retail items. We have simply had a paradigm shift pushed into place by delivery at your door with free shipping included.
So the electronics parts supply has gone back to the 'mail-order parts house' business plan, except that it is now an 'internet-order parts house'. I suppose some local retailers will prevail in niche markets that are big enough to support them. And companies like Jameco will always buy up excesses of manufacturing inventories to provide at a discount.
But it is kind of difficult to define what it is that I am "doing myself" these days.... more programing, less building. I suspect the real market is for a new generation of well-written books. Sorry, but Forrest Mims III is so out-dated at this point. Even "The Art of Electronics" is out-dated.
I didn't start with a soldering iron. I started with an "ARRL Handbook" and then got into buying parts and doing things.
I had the same experience that others have had. I go in, the salesperson asks if they can help me, and I say "I need a diode." and I get a blank stare. Then finally "What's a diode ?".
Now I rarely go into RS unless I really need a part, then I'm lucky if they have it and I hold my nose and pay 5-10 times more for it. http://www.radioshack.com/product/index.jsp?productId=2102852
I fear RS has lost it's formerly loyal customers and will have a hard time getting them back or finding a new customer base.
If I was CEO, the first thing I would is stop selling cell phones and consumer electronics (the market is saturated).
Then I would train the employees to actually know what every product was and very simply what it does.
Then get into the current DIY market. 3D printers, laser cutters, robots, kits, parts, tools, microcontrollers, R-Pi, Arduninos, Propellers, PICs, AVRs, etc.
Bean
Seriously... a couple of thoughts:
Hire people with some knowledge of electronics. Perhaps add "Knowledge of electronics a majorly huge plus" to the job description. :-)
Scale back the emphasis on cellphones. Don't get rid of it tho', every time I go to one of the stores there's always someone there with a cellphone issue.
Reach out to schools. Many have a robotics class or club. Offer discounts on parts/kits. Sponsor/co-sponsor competitions.
Occasional in-store demonstrations of DIY projects. This would mostly require customer involvement. (I've offered to bring a couple of my projects to local store, but there isn't much interest. Gotten more interest from my plastic supplier who is fascinated to see some of their product meandering around the store under it's own power.)
Lastly, hire more people with customer service skills. Some stores are quite lacking in this area.
Just my thoughts.
Amanda
I've brought a couple projects into the Radio Shack in the next town, they were interested and wanted to see them connected and working. (Quickstart Player and VGAplus) The catch was that corporate wouldn't allow them to be left running on the counter.
Radio Shack's Error: You can't simply stock up on a bunch of parts and call yourself a DIY business. They've attempted to take shortcuts into "modern" electronics DIY without making the investment themselves. Even their Radio Shack projects website was about people who DID take the time to create things, then post them to the site.
If they wanted to invest themselves into the DIY community, (which would have been a big win this this area) they could have sectioned the store into an actual "maker" area like they did with the old Tandy computer stuff and have folks who work that department who UNDERSTAND how things work.
Radio Shack's "free energy" approach to DIY naturally didn't work. They should have teamed with Parallax on this... Parallax HAS invested in their business.
Jeff
I have been to a couple of Maker Faires where they tried to make that happen. They had 20+ soldering stations set up. Lot's of kids.
Can't remember now what they were making. I have some picture I need to go back to.
RS people always have intelligent answers to my stupid questions. But they(the front end) know nothing about Parallax products. Honestly, how does the CEO expect the products to sell, if the front end knows nothing about them? The chips can't fly themselves off the shelf. Before I spent one dime on Parallax products, I would have been planning staff education. It could be free and mandatory. Parallax is great at teaching... why can't they teach RS employees?
RS needs to take less markup and put cheaper products on-line(somewhere that the employees can remember) with one demo unit of each product in the stores... then place a catalog-let(big pictures... kids having fun) in the section that exhibits the really expensive stuff...quadcopters, high end boards, high end wheel kits. Don't stock anything...just sell the demo units at a price break and then re-order. Hold regional contests for RS people only... "best designs/projects using RS/Parallax parts." Tour the winning projects in round robin store demos.
Geesh...if you can't sell Propellers, maybe you should just hang it up and let someone else try.
The internet has changed many things and made many things obsolete; like the local hobby shop, it's time for RS to ride off into the sunset.
C.W.
You mean.... you don't like my idea of having them sell DIY kevlar vest knitting kits?
I'm shattered.
Of course, I guess just those drawers could survive in a mall cart, kiosk or even a vending machine. That would be better than nothing.
Here in California, we're totally spoiled; we have Fry's stores. Amazing, gigantic electronic/stereo/computer/software/dvd/toy stores each with outrageous, overdone themes. Giant Tiki/Easter Island heads & in-store waterfalls, Sci-Fi props, you name it. Total geek paradise. Big sales, hot dogs in the parking lots, always busy, always a line. Candy, snacks, drinks, gamers' potions (gimme a break). IMO the Shack could learn much from them.
http://www.bauer-power.net/2010/06/frys-electronics-elaborate-themes.html#.Uifc8Rjn9xA
http://www.frys.com/
Themes include, California stores: Tahiti (Manhattan Beach), Ancient Rome (Fountain Valley), Wild West (Palo Alto), Mayan temple at Chichen Itza (San Jose), Alice in Wonderland (Woodland Hills), History of Silicon Valley (Sunnyvale), Ancient Egypt (Campbell), 1893 Chicago World's Fair (Fremont), Industrial Revolution (City of Industry), California Gold Rush (Sacramento), NASA Space Center (Anaheim), 19th-Century California Railroads (Roseville), and Atlantis (San Marcos). Arizona stores: Aztec temple (Phoenix). Nevada stores: History of the Strip (Las Vegas). Texas Stores: Music Industry (Austin), History of Irving (Irving), Lazy-K Ranch (Dallas), Oil Industry (Houston) and Space Exploration, including a replica of the International Space Station (Webster).[5] Since Fry's acquired the Incredible Universe chain of stores, the company has reduced the elaborateness of its theming. With the opening of the Fishers, Indiana store, Fry's made a "race track" theme with various hanging displays, including "stop" and "go" signs.
Your thesis is that the world would be better off without RS?
If there isn't a market for retailers, why does Apple sell products through retail outlets?
If RS employees knew Parallax products as well as the chains know Apple products, we wouldn't be having this discussion.
The vertical integration of Parallax, though incomplete, is inescapable. That integration benefits from retail outlets and will benefit Parallax more as its product offerings expand.
I can't tell you how many RS products that Parallax caused me to buy... resisters, capacitors, chips of all kinds. There is a synergy that cannot be denied.
The rank amateur doesn't want to go to EBay or mouser. Much of the time, they don't even know what they need:)
A strong Parallax benefits everyone here. Helping RS would also benefit everyone, as long as RS keeps the focus and actually functions the way that it should.
RS employees working the "RS DIY" department should have a good basic understanding of Parallax, Ardunio, PIC, etc. A basic understanding of electronics which goes at least a bit further than what a diode is. If you are selling a product that you have no understanding of, then something is seriously wrong.