Radio Shack 2010 Annual Report Download - page 15

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of the world to obtain raw materials and private brand
merchandise. We do not expect a lack of availability of raw
materials or any single private brand product to have a
material effect on our operations overall or on any of our
operating segments. We have formed vendor and third-party
service provider relationships with well-recognized
companies such as Sprint, AT&T, T-Mobile, Verizon, Apple,
Casio, Garmin, Hewlett-Packard, Microsoft, Research In
Motion, Samsung and SanDisk. In the aggregate, these
relationships have or are expected to have a significant effect
on both our operations and financial strategy. Certain of
these relationships are important to our business; the loss
of or disruption in supply from these relationships could
materially adversely affect our net sales and operating
revenues. Additionally, we have been limited from time to
time by various vendors and suppliers on an economic
basis where demand has exceeded supply.
ORDER BACKLOG
We have no material backlog of orders in any of our
operating segments for the products or services we sell.
COMPETITION
Due to consumer demand for wireless products and
services, as well as rapid consumer acceptance of new
digital technology products, the consumer electronics retail
business continues to be highly competitive, driven
primarily by technology and product cycles.
In the consumer electronics retailing business, competitive
factors include price, quality, features, product availability,
consumer services, manufacturing and distribution
capability, brand reputation and the number of competitors.
We compete in the sale of our products and services with
several retail formats, including national, regional, and
independent consumer electronics retailers. We compete
with department and specialty retail stores in more select
product categories. We compete with wireless providers in
the wireless handset category through their own retail and
online presence. We compete with mass merchandisers
and other alternative channels of distribution, such as mail
order and e-commerce retailers, on a more widespread
basis. Numerous domestic and foreign companies also
manufacture products similar to ours for other retailers,
which are sold under nationally-recognized brand names or
private brands.
Management believes two primary factors differentiate us
from our competition. First, we have an extensive physical
retail presence with convenient locations throughout the
United States. Second, our specially trained sales staff is
capable of providing cost-effective solutions for our
customers’ routine electronics needs and distinct
electronics wants, assisting with the selection of
appropriate products and accessories and, when
applicable, assisting customers with service activation.
We cannot give assurance that we will compete
successfully in the future, given the highly competitive
nature of the consumer electronics retail business. Also, in
light of the ever-changing nature of the consumer
electronics retail industry, we would be materially adversely
affected if our competitors were able to offer their products
at significantly lower prices. Additionally, we would be
materially adversely affected if our competitors were able to
introduce innovative or technologically superior products
not yet available to us, or if we were unable to obtain
certain products in a timely manner or for an extended
period of time. Furthermore, our business would be
materially adversely affected if we failed to offer value-
added solutions or if our competitors were to enhance their
ability to provide these value-added solutions.
EMPLOYEES
As of December 31, 2010, we employed approximately
36,400 people, including 1,300 temporary seasonal
employees. Our U.S. employees are not covered by
collective bargaining agreements, nor are they members of
labor unions. We consider our relationship with our
employees to be good.
AVAILABLE INFORMATION
We are subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and rules and regulations adopted by the
U.S. Securities and Exchange Commission (“SEC”) under
that Act. The Exchange Act requires us to file reports, proxy
statements and other information with the SEC. Copies of
these reports, proxy statements and other information can
be inspected and copied at:
SEC Public Reference Room
100 F Street, N.E.
Room 1580
Washington, D.C. 20549-0213
You may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330.
You may also obtain copies of any material we have filed
with the SEC by mail at prescribed rates from:
Public Reference Section
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549-0213
You may obtain these materials electronically by accessing
the SEC’s home page on the Internet at:
http://www.sec.gov
In addition, we make available, free of charge on our
corporate website, our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form
8-K, and amendments to these reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act, as