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Of Donuts and Diodes: How Radio Shack Lost its Way

Published: February 6, 2015

It is an often-overlooked fact that while Radio Shack may not have invented the personal computer nor finally gained preeminence in the market, it did give it an essential boost.

Ask anyone of a 40+ age demographic and chances are Tandy computers were among the first they cut teeth on.

The direct involvement of groups and the stores was a very symbiotic relationship; individuals learned fostering a hobby and knowledge while the stores gained dedicated clients. Many used the connection and education to start their career in AV or electronics.

The legions of hobbyist turned professionals kept the store at heart. Engineers used it to gain parts for proof-of-concept projects that turned into mass market devices — there was always the right part available.

Talk to the folks who set up trade shows or work in the event staging industry and you will find that it was once de rigueur to first find and visit the local Shacks upon arrival in a new city. It was an essential destination and one that could make or break a job.

Wherefore Art Thou?

As mentioned earlier, Radio Shack was built on the direct relationship between the stores, the owners and the clients. The business model of providing parts and technology worked well… and then came the era of the IPO. 

Just as Harley Davidson typhooned under the ownership of AMC so it is that Radio Shack succumbed to the demands of investors. It is a common theme these days. As a company looks to reach further and satisfy investor demands for x% increase in revenues, it must begin to reach outside its core model.

So began the morphing from hobbyist and tech community mecca into what can only be described as Best Buy Lite. The once rich fields of parts, kits and computers gave way to knock off boom boxes, Blu-ray players and cell phones.

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Oh, the cell phones! Walking into the store quickly turned into a parody of the religion hawkers scene in the movie Airport. In the film the character Captain Rex Kramer, while heading to the tower, is assaulted by a cavalcade of panhandling zealots. To reach his destination, Kramer (played by actor Robert Stack) must fend them off action hero style. 

Upon entering a Radio Shack store, one was pounced upon by increasingly aggressive sales folks asking if you were looking for a new phone or carrier. Simply checking out with the purchase of a RF Coax barrel required the verbal equivalent of Jujutsu.

The act was beyond annoying. The store had lost its connections.

Donut Holes

As both retail and online continued to promote the new offerings over the parts and solutions, visits by the former core customer base resulted more often than not in frustration.

Folks who shopped at the box stores saw no reason to visit a less polished version.

One can make a strong argument that the rise of the Maker movement was directly fostered by the existence of the stores. The slide away from the core audience also forced the community to come together and emerge as an independent entity, further distancing a once well established customer base.

Just as in the story of the donut chef — Radio Shack has lost it way — they had lost their donut hole. 

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