Title: 5 Reasons Why RadioShack Went out of Business
Headings: 5 Reasons Why RadioShack Went out of Business
5 Reasons Why RadioShack Went out of Business
1. High Store Concentration
2. Online Competition
3. Product Concentration
4. Management Problems
5. Financial Missteps

Content: By 2014, cellphones alone accounted for about 50% of the company's total sales, making it a very risky proposition of a high product concentration. Things began changing rapidly after the introduction of the iPhone in 2007. As the sales channels for cellphones began shifting towards buying phones through wireless operators, many carriers substantially reduced payments to RadioShack and similar resellers to mitigate the rising cost of subsidizing iPhones. As a result, RadioShack's profit margins and sales deteriorated significantly, precipitating the company's bankruptcy. 4. Management Problems
The constantly changing management did not help the company's efforts to turn itself around. From 2005 to 2014, the company changed its chief executive officers seven times. Joseph Magnacca joined RadioShack in 2013 as its CEO to speed up the turnaround. The company set a goal of restoring profitability by 2015 with a significant store, and product revamps changes in compensation structure, and aggressive marketing campaigns. However, as Magnacca's effort started rolling out, the results got worse due to rising costs, constantly shifting management orders on short notice, and confusing commission structures.