Radio Shack

Case Analysis
Radio Shack International

The case study focuses on Charles D. Tandy, owner of the Radio Shack International, the leading merchandiser of amateur electric gear in the United States. Considering the success of their operations in U.S, Charles Tandy exercised the same approach and applied it with their European operations. Unlike the success of their U.S operations, their European operations achieved completely different result wherein the latter incurred a loss of $21 million. Despite those losses Charles Tandy believed that his strategy will work, and predicted that in two years their operations will be profitable.

Time Context:
Radio Shack International began their European Operations by opening their first store in Belgium, in the year 1973. In 1977, the organization had 459 overseas outlets, but they had not added a new store in 18 months and incurred a loss of $21 million in the previous three years.

I. Problem Statement
Radio Shack international incurred losses due to inappropriate approach used within their operations.

II. Statement of the Objective
Implement measures or right strategies to boost the brand image and improve the organizations performance considering factors that truly affect their performance.

III. Areas of Consideration

Strengths Weaknesses Opportunities Threats
-Wide product mix
-Heavy advertising
-Well located stores -Quality image of products (discounted products do not attract European customers)
-Unawareness of the true needs of the customers
-Unfamiliarity of laws and culture -Can reach potential customers
-Vast operations -Culture (brand conscious)
-Quality of life
-High competition
-Negative perception about discounted products

IV. Assumption
The approach that they had used in their operations in United States will not work with their operations in Europe. First and foremost they do not clearly recognize the needs, wants, and desires of their customers. Second they...