How important is naming a business? I’ll tell you why I think RadioShack’s name was part of a bigger problem that brought them down.
Last week electronics retailer RadioShack filed for bankruptcy protection. There are plans in place to sell around 2,400 stores to their largest shareholder, Standard General. Some of these stores will be transformed into Sprint stores, while still selling RadioShack products. The retailer has struggled in recent years, and the move was somewhat expected.
This news about the business and the brand got me thinking: was naming a business “RadioShack” the best idea?
RadioShack started in 1921 in Boston selling ham radios. So using “radio” in the name sounds appropriate to me. Since then, they have went through numerous logo changes you can find here from Bloomberg, but the name never changed as their business expanded. There is certainly brand value in a name, but after time and the nature of RadioShack’s business, I think it would have been worth looking at re-naming the store.
NAMING A BUSINESS
When I see “radio” today it seems like outdated technology to me. Sure, radio’s come standard in all vehicles today. But technology has evolved rapidly in the past twenty years. People are enjoying Pandora, XFM, and Podcasts. News comes primarily from TV or online. A radio in our daily lives has become a bit dated.
Shack seems off to me too. When I think of a shack, it’s made of wood sitting out in the woods. Not likely the place to find the latest technology. Beyond that, there’s snow-shacks, burger shacks, more food related than technological. As RadioShack expanded beyond radios to mobile devices and radio-controlled entertainment, a name change could have been considered. RadioTech? RadioCenter? RadioMart? No, no not that…
Did naming a business RadioShack drive customers away? I think maybe it did. We have one in the town I live in. I’ve been here for six years now, and visited the The Shack maybe three times. Best I can remember it was for cords for mobile devices, and then it was not my first stop. The store was nice and spacious. It just hasn’t been the first place I think of when I need some tech accessories or help.
That’s the point, despite trying over the years, they just didn’t establish themselves as the go-to place for devices and technology. The name giving the wrong impression and “R” logo not wowing anyone may have made that a challenge.
WHAT ABOUT YOUR BUSINESS?
When naming a business, be careful not to position yourself too closely with ideas that could become dated. If you have too, at least be open to a name change down the road if your industry changes. In case you’re having trouble naming a business, 48hourslogo has recently added an option for Naming Contests! It’s simple to start, very similar to our logo contests. Our Design Community will submit creative names you can use for your business or startup.
Would a name change have kept RadioShack from filing for bankruptcy protection? Not alone. But it could have been one of the first steps into gaining a foothold within their market. This has been a particular problem for the company. If fixed sooner, it could have helped them last for the one-hundred year mark.