Introduction
According to Bredl (n.p) RadioShack faces stiff competition from companies like Amazon.com Inc, eBay Inc as well as Costco Wholesale Corp and Target Corp. most of RadioShack’s problems lie in its ability to sell its products. This is related to its poor customer service. A ranking done by Temkin Customer Service Ratings in 2011 exposed RadioShack as the worst retailer when it comes to customer service. On operations, RadioShack has also failed significantly in its smaller-footprint kiosk model.
While it is obvious that RadioShack has failed in its customer service, it is important to recognize that it has achieved most of its growth from sales of postpaid and prepaid mobile phones and acquiring commissions from sales. The 2011 annual report figures suggest that Radio Shack should become a licensed mobile phones and wireless devices seller. This is because Radio Shack’s Mobile business accounts for 51.4% of the net sales made in 2011 a figure up from that of 2010 of 44.2%. However, more problems might arise when competitors with a strong financial base encroach on this market using creative means. For example, Apple Corp. already attracts immense traffic to its stores where they sell iPhones. If Apple opens branded stores, it might easily overtake RadioShack. Because of these problems, RadioShack needs to improve its brand, its customer service and its operations.
Improving customer service and experience will help RadioShack increase its sales. This has been an area of concern according to Temkin Customer Service Ratings (n.p.). This can be achieved by paying more attention to consumer needs and trends. Offering warranties on items bought will increase their customer base and increase its competitiveness. RadioShack can also benefit significantly by improving their kiosks to appeal to potential customers.
RadioShack can improve its competitiveness through positioning. This involves making its products distinct from those of its competitors. The company can then focus on products that generate the most sales revenue. For example, its 2011 results point the company in the direction of the mobile phones and wireless devices sector. RadioShack can improve its brand in this sector through aggressive marketing efforts and by partnering with advertising firms. RadioShack can improve sales through e-business. This involves selling its products online. This will help the company compete with market leaders like Amazon.com Inc and Apple.
Conclusion
RadioShack is currently not doing well competitively in comparison to its major competitors. The company can increase its competitiveness through by improving its customer experience. Aggressive marketing will also help to improve the company’s market share in a highly competitive business environment. RadioShack can also enhance its brand to raise appeal. The company’s kiosks can be made more appealing through attractive branding and focused marketing. This can be achieved by partnering with advertising firms.
Works Cited
Temkin Trust Ratings. "Customer Experience Journal." 2011 Temkin Trust Ratings. Version 1. temkin Group, 1 Nov. 2011. Web. 14 Mar. 2013.
