Accounting & Investing Info for San Antonio A & M
Friday Feb 6, 2015
Radio Shack is officially bankrupt.
The stock soared to $74 in 1999, today it is literally a dime. One of the lessons of capitalism is creative destruction. RSH should have become an amazon type on line electronic retailer. They did not or at least were too late to the party trying to sell on line. The result, like so many other electronic retailers that have come and gone, is bankruptcy.
I actually went to Radio Shack last year on advice from a friend. He said they’d have the part I was looking for (an actuator). I went. “Sure! We have those. Come over here,” the employee told me. I followed. She led me to a computer terminal and showed me the item on their webpage. “All you have to do is order it on-line,” she said. Doh!
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RSH is a classic case of failure due to lack innovation.
It didn’t evolve along with the fast-paced world of technology.
I would like to think that the company has full of arsenal (bright minds) at its disposal but no one knows how to use it (planning).
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Sometimes there is no good solution, many electronic retailers have gone bust this is the most recent. They could not compete with regular phone stores like ATT and Amazon snared the on line gizmo shopping business. can you think of anything they could have done? the traditional store front model could not compete with Amazon, Best Buy continues to struggle as well.
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Professor Elam 
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