“They have everything and it’s easy and fast. “Amazon is the Death Star,” said Allen Adamson, co-founder of the marketing strategy firm Metaforce. If Amazon is the biggest threat to some of America's largest corporations, what are the prospects for a relic from the 1980s?
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It has upended industries from tech and grocery, to global shipping. Megachains like Walmart and Target have been able to slow Amazon's encroachment, but Amazon is the ultimate disrupter. Those are products that Amazon sells under its own brand name in vast quantities.Īnd therein lies REV's challenge.
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RadioShack was the place to go for batteries, phone chargers and headphones. REV says that its much leaner RadioShack will sell from its own website and an Amazon storefront. However, the Toys R Us site redirects those who want toys to. Toys R Us, which closed its doors two years ago, opened a couple of small stores and it has a website. American Apparel, which went bankrupt and closed all its stores a few years ago, now sells hoodies and sweatpants online. But they are typically much reduced affairs. The overhead is low and there are people who remain loyal to the brand, even after the store lights go out. Other bankrupt retailers have found a second life online. Since it was founded in 2019, REV has been in the hunt for other names that could once be described as “household.” It's turned Pier1, Dressbarn and Modell's into online-first businesses. Trust in that name will get consumers to the site, where the quality and variety of merchandise will dictate whether or not shoppers click the “Buy” button, they say. The plan, in short, is to build a vast online marketplace on top of the RadioShack brand. Mehr said REV's formula for measuring public opinion of a brand differs significantly from the way other experts value such things, including their own polling and analysis of how the company might work in a specific “ecosystem." I have quantifiable data that the brand is very strong.”
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“We bought the raw material to build a big business," Mehr said. But they say there is a path back to profitability, and it all starts with the name. Mehr and Lopez have no designs on rebuilding the brick-and-mortar RadioShack empire. After store redesigns and other changes failed to draw customers, the Fort-Worth, Texas, company filed for Chapter 11 bankruptcy protection in 2015 and then again two years later.
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Unable to capitalize on the PC boom that began in the mid-eighties, it also found itself largely on the outside of the portable device revolution of the aughts and drifting toward irrelevancy. Somewhere along the way, “The Shack” got lost. The company, which would celebrate its 100th birthday in 2021, appeared to be on top of the tech world in the pre-personal computer days of the late 1970s and early 1980s, the place kids and hobbyist would go to buy radios, walkie-talkies and all the parts to fix them, or even build them themselves. Success is something that's been in RadioShack's rear-view mirror for quite some time. I’m not sure that just remembering something is leverageable enough to be able to convert something into success.” “Being iconic a lot of the time just means people have a memory of it. “It’s a very thin line between being iconic and being dead,” said Robert Passikoff, founder and president of Brand Keys Inc., a marketing and research consultancy. The big question is: How much value does the RadioShack brand have when the prized target audience of younger consumers may have never owned a radio, let alone stepped inside a RadioShack store?
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However, unlike RadioShack's glory years, it's Amazon's world now. Mehr and Lopez plan to make RadioShack competitive again, this time online, rather than on street corners or in malls.