Both RadioShack and Best Buy sell consumer electronic merchandise; however, the companies have different retail strategies. RadioShack targets three family-oriented customer segments:(1) Active suburban families with teenage children,(2) Urban "flash" consumers with preteen kids,(3) "small-town values" families with children of all ages. These three demographic groups represent 38 percent of the u. s.

population and 46 percent of the consumer electronics market.Through its stores, kiosks, and Web site, RadioShack provides families with accessories, consumer electronic solutions, and proprietary novelty products. The customers in its target markets are willing to pay a reasonable price in return for convenience, selection, and simplicity in their shopping experience. The company provides excellent customer service that provides solutions for families' home electronic needs, as emphasized in its "You've Got Questions. We've Got Answers," branding campaign.

RadioShack has over 5,000 stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The stores, typically 2,500 square feet, are located in major malls and strip centers, as well as stand-alone locations. Each location carries a broad assortment of both private-label and national brand consumer electronics products.

The product categories offered include mobile and wireless phones; direct-to-home satellite systems; computers and accessories; general and special purpose batteries; wire, cable, and connectivity products; digital cameras; radio-controlled cars and other toys; and satellite radios.In addition. RadioShack sells services provided by third parties, including cellular and PCS phone service, direct-to-home satellite activation, satellite radio service, and prepaid wireless airtime. The company also has a network of 2,000 dealers servicing smaller markets, operates 500 kiosks located in Sam's Club stores, and owns four manufacturing plants producing its private-label merchandise. In contrast to RadioShack's specialty store format, Best Buy operates 700 category killer stores in the United States plus a Web site.The stores, averaging 42,000 square feet, are typically staffed by one general manager, four to five assistant managers, and 120 full- and part-time employees.

Best Buy's retail strategy focuses on bringing technology and consumers together in a retail environment that educates consumers on the features and benefits of technology and entertainment products. The stores offer merchandise in four product groups: consumer electronics, home office, entertainment software, and appliances.Consumer electronics, the largest product group, consists of televisions, digital cameras, DVD players, digital camcorders, MP3 players, car stereos, home theater audio systems, mobile electronics, and accessories. The home office product group includes desktop and notebook computers, telephones, networking, and accessories. Entertainment software products include DVDs, video game hardware and software, CDs, computer software, and subscriptions. The appliances product group includes major appliances, as well as vacuums, small electrics, and housewares.

Best Buy also offers a variety of in-store and in-home services related to the merchandise offered within the four product groups. In-store services include computer setup, repair, and software installation, as well as the installation of mobile electronics. In-home services include computer setup, repair, software installation, and home networking, and the delivery and installation of appliances and home theater systems. Whereas services were not a significant part of its revenue in fiscal 2004, it feels that service revenues will become a more significant component of its business.