But that was a movie. In real life, he would have gone bankrupt. The idea was simple: They hired a seasoned CEO from Anderson Consulting now Accenture and lined up an all-star board of experienced venture capitalists.
History[ edit ] The first 40 years[ edit ] The company was started as "Radio Shack" in by two brothers, Theodore and Milton Deutschmann, who wanted to provide equipment for the then-nascent field of amateur, or ham radio. The brothers opened a one-store retail and mail-order operation in the heart of downtown Boston at 46 Brattle Street.
The Deutschmanns thought the name was appropriate for a store that would supply the needs of radio officers aboard ships, as well as hams amateur radio operators. InRadio Shack began selling its own private-label products under the brand name Realistchanging the brand name to Realistic after being sued by Stereo Realist.
After expanding to nine stores plus an extensive mail-order business,  the company fell on hard times in the s. Radio Shack was essentially bankrupt, but Charles D. Tandy Corporation Former RadioShack logo — The Tandy Corporation, a leather goods corporation, was looking for other hobbyist-related businesses into which it could expand.
Private-label brands from lower-cost manufacturers displaced name brands to raise Radio Shack profit margins;  non-electronic lines from go-carts to musical instruments were abandoned entirely.
As an incentive for them to work long hours and remain profitable, store managers were required to take an ownership stake in their stores. Tandywho had guided the firm through a period of growth in the s and s, died of a heart attack at age 60 in November Inthe breakup of the Bell System encouraged subscribers to own their own telephones instead of renting them from local phone companies; Radio Shack offered twenty models of home phones.
The company manufactured everything from store fixtures to computer software to wire and cable, TV antennas, audio and video tape.
House-brand products, which Radio Shack had long marked up heavily, were replaced with third-party brands already readily available from competitors. This reduced profit margins.
Inthe company introduced webvan business plan service known as "The Repair Shop at Radio Shack", through which it provided inexpensive out-of-warranty repairs for more than 45 different brands of electronic equipment.
InRadioShack successfully petitioned the US Federal Communications Commission to allocate frequencies for the Family Radio Servicea short-range walkie-talkie system that proved popular. The cards also served as generic business cards for the salespeople.
Allied Radio[ edit ] InTandy Corporation bought Allied Radio Corporation both retail and industrial divisionsmerging the brands into Allied Radio Shack and closing duplicate locations.
After a federal government review, the company sold off the few remaining Allied retail stores and resumed using the Radio Shack name. Flavoradio[ edit ] The longest-running product for Radio Shack was the AM-only Realistic Flavoradio, sold from to15 years in the same design. This also made the Flavoradio the longest production run in radio history.
Originally released in 6 colors or flavors, strawberry, orange, lemon, avocado, blueberry and grape, the line grew to eleven flavors. They were made in Korea, Hong Kong and the Philippines. The Flavoradio carried the Realistic name until about when it switched to "Radio Shack" then finally "Optimus".
When the Flavoradio was dropped from the catalog init was the last AM-only radio on the market. Tandy also inspired the Tandy Computer Whiz Kidsa comic-book duo of teen calculator enthusiasts who teamed up with the likes of Archie and Superman. Poor compatibility, shrinking margins and a lack of economies of scale led Radio Shack to exit the computer-manufacturing market in the s after losing much of the desktop PC market to newer, price-competitive rivals like Dell.
This logo is similar to the logo they used from In the mids, the company attempted to move out of small components and into more mainstream consumer markets, focusing on marketing wireless phones.
This placed the chain, long accustomed to charging wide margins on specialized products not readily available from other local retailers, into direct competition against vendors such as Best Buy and Walmart.
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The leather operating assets were sold to The Leather Factory on November 30, ;  that business remains profitable. Enercella house brand for dry cell batteries, remained in use until approximately RadioShack tape recorder Most of the RadioShack house brands had been dropped when Tandy divested its manufacturing facilities in the early s; the original list included: Realistic stereo, hi-fi and radioArcher antenna rotors and boostersMicronta test equipmentTandy computersTRS proprietary computerScienceFair kitsDuoFone landline telephonyConcertmate music synthesizerEnercell cells and batteriesRoad Patrol radar detectors, bicycle radiosPatrolman Realistic radio scannerDeskmate softwareKitchenMate, Stereo Shack, Mach One, Supertape recording tapeOptimus speakers and turntablesFlavoradio pocket AM radios in various coloursWeatheradio, Portavision small televisions and Minimus speakers.
InRadioShack was one of multiple backers of the CueCat barcode reader, a marketing failure. Name and mailing address were requested for special orders RadioShack Unlimited parts and accessories, Direc2U items not stocked locallyreturns, check payments, RadioShack Answers Plus credit card applications, service plan purchases and carrier activations of cellular telephones.
RadioShack had not made products under the Realistic name since the early s. The three Texas stores DallasHighland Village and Allen were furnished with white fixtures like those in the remodelled wireless departments of individual RadioShack stores, but there was no communicated relationship to RadioShack itself.
Had the test proved successful, RadioShack could have moved to convert existing RadioShack locations into PointMobl stores in certain markets.
Morale was abysmal; longtime employees who were paid bonus and retirement in stock options saw the value of these instruments fade away.
The RadioShack brand remained in use in the United Statesbut the 21st century proved a period of long decline for the chain, which was slow to respond to key trends—ranging from e-commerce and the entry of competitors like Best Buy and Amazon.
Electronic parts formerly stocked in stores were now mostly only available through on-line special order. Store employees concentrated efforts selling profitable mobile contracts, while other customers seeking assistance were neglected and left the stores in frustration.
The program put the 1, lowest-graded store managers, of over 5, on notice of the need to improve.What we can learn from business planning documents — examples from Webvan Group. Business plans and related documents can tell us a great deal about the assumptions and strategies of both successful and failed companies.
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Free business-day shipping within the U.S. when you order $25 of eligible items sold or fulfilled by Amazon. The goal of this report is to make a recommendation to Webvan’s management team whether Webvan, once the largest online grocery enterprise in the United States and a large investment failure, should be restarted as a new enterprise using the original strategy and business model before the company went bankrupt in Oct 14, · Blue Apron cofounders Ilia Papas, CEO Matt Salzberg and Matt Wadiak have a $2 billion valuation and a bold plan to bring back home-cooked dinners in the U.S.
(Photo credit: Blue Apron). Webvan, the latest dot-company to come and go and lose a billion dollars in the process, did a decent job in its main business of delivering groceries.
But somehow the company managed to screw up.