RadioShack Competition
Now Viewing RadioShack's competition in: Consumer Electronics Stores (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company’s typical customers? - Affluent men, families with children, professional women, and small businesses are important.
What are the company’s most effective marketing vehicles? - Companies use TV, newspaper, radio, and Internet advertising, direct mail, and in-store events.
How important is price promotion for the company? - Companies use discounts, rebates, and other promotions to generate store traffic and remain competitive with alternative channels.
How does the company generate repeat business? - Companies may offer superior customer service or use customer loyalty programs to generate repeat business.
How does the company evaluate the quality of customer service? - The technical nature of many electronic products requires a high level of customer service.
How has the Internet changed how consumers buy the company's products? - Many customers use the Internet to research products and compare prices.
How important is Internet retailing to the company? - Most large chains have retail Internet operations, and may link to other websites.
What competitor is the greatest threat to the company? - Stores compete with mass merchandisers, warehouse clubs, department stores, Internet and mail order retailers, specialty office and computer retailers, and some manufacturers.
Competitive Landscape
Technological innovation and the need to replace or upgrade products drive demand. Profitability for individual companies depends on the ability to generate store traffic and repeat business, as well as effective merchandising. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete effectively by offering specialized products or superior customer service.
Business Challenges
CRITICAL ISSUES
Significant Declines in Retail Prices - Retail prices for many major segments of consumer electronics products have been steadily declining. Between 2007 and 2008, retail prices declined about 17 percent for TVs and about 12 percent for computers and peripherals. While electronics retailers have historically relied on increased volume to compensate for price declines, market saturation levels of products may limit growth and affect profitability.
Competition from Alternative Channels - Consumer electronics stores face heavy competition from numerous other channels, including warehouse clubs, mass merchandisers, department stores, and Internet and mail order retailers. Internet and mail order retailers sell over $20 billion in computer hardware annually. Alternative channels will continue to threaten electronics stores, as entry-level electronic products become less complex and easier to sell.
Industries Where RadioShack Competes
- Retail
- Consumer Electronics & Appliances Retail(primary)
- Camera & Optical Goods Retail
- Computer & Software Retail
- Nonstore Retail
- Telecommunications Equipment
