application assignment #3

Robin Gines

Stephanie Hernandez

Aaron Rodriguez

Group #4

Application Assignment #3

1. The opportunities and threats of RadioShack are pretty obvious according to swotanalysis24. An opportunity RadioShack can capitalize on is expanding their products and services. For example RadioShack can try to expand their product inventory and reach out to different target markets as well as make more co-branded partnerships like they did with Nick Cannon and the NCredible Headphones that are exclusively sold at RadioShack. Another opportunity RadioShack can capitalize on is the increase in customer spending in the United States. According to Canadean, a market research company, in the year 2013, personal income increased by 2.8%, disposable personal income increased by 1.9%, and personal consumption expenditures increased by 3.1%. This increase in consumer spending is an opportunity for RadioShack because people are spending more money at stores, potentially RadioShack. A threat that RadioShack is facing is that there are many well-known competitors, like Amazon and BestBuy that are able to offer products at lower costs because they are mass merchandisers. Another threat to RadioShack is the increase in minimum wage. Along with the rise of minimum wage comes the rise of operational costs which impacts RadioShack because they are already losing profit and cannot afford to lose much more.

2. RadioShack has many trends in its industry. According to Forbes.com a big trend in the technology/retail industry is e-commerce. Companies are moving toward online stores especially when it comes to cars and technology, in the future physical stores may be completely eliminated and all transactions will be done over the internet. Therefore RadioShack will need to increase its online presence to compete in the emerging online marketplace. Having smart products is also a new trend RadioShack has to be aware of. Everything in today’s society needs to be connected, from your refrigerator, to your phone to your car etc. So Radioshack needs to carry more items that are part of this “smart” trend. They need to expand to appliances, car accessories, beds and other home appliances that are connected to technology.