Difference between Best Buy and Radio Shack
Despite the changes in the economy and many stores going into bankruptcy, Radio Shack and Best Buy are still successful in navigating the ups and downs of this volatile time. Both are looking for ways to stay above water; Best Buy is partnering with a Youth Venture and Radio Shack looking into being put up for auction, going online with electronics, or even possibly merging with Best Buy. Best Buy is an electronic consumer store while Radio Shack went from a parts store to a parts and cell phone store. Best Buy is still booming with sales but Radio Shack is falling flat on its head because of prices and cell phones can now be bought anywhere.
How They Started Off
Radio Shack started off years ago as a one stop shop for builders and creators. People were coming to the store right off the bat for parts, pieces and random components, thus giving them volumes of customers. The staff knew what they were doing and knew about the parts. Now they have less informed employees who know much less about the parts and have taken over cell phones. Best Buy was established first in 1966 as Sound of Music and established as Best Buy in 1983. The store has always catered to it's customers as a consumer electronics store and offers competitive prices.
Where Their at Now
Currently, Best Buy is partnered up with Youth Venture which is a program that invests in people and teams of people attempting to "launch lasting social ventures." The 2009 award winner was acknowledged for helping the homeless, given this new partnership and Best Buy more recognition and a deeper outlook. The store is still in good standing with sales. Radio Shack, however, is currently as they say, "sitting on $900 million," but needing a way to go before spiraling downwards. If the two link up, it might be a very bad move for Best Buy. RS’s choices are to sell or switch strategies to creating a heavy online presence in hopes of getting more business.
Which One to stay Afloat
Between the two businesses only one will most likely stay afloat. Best Buy is right now in better financial standing then Radio Shack. The store is not even considering closing, selling out or auctioning. The only real competition for the store now is Wal-Mart. Radio Shack on the other hand will need to either linkup to stay on top or convert to online. The company’s price tag is $3 billion not including the cost for closing stores and paying for the employees to be laid off. Let's hope Best Buy exercising caution before partnering with Radio Shack.
Summary
- Both companies started as electronic consumer stores bowing to the needs of the customers with parts and systems.
- While the economy is down, Best Buy seems to be able to make it, where as Radio Shack is spiraling down fast but trying to stand their ground somehow.
- Best Buy offers a wide variety of electronics and Radio Shack is now catering to mostly cell phones and has done away with most of the odd and ends parts that it was known and built upon.
