Why Did Radiodshack Fail

RadioShack, once a technological powerhouse, employing over 25,000 workers, filed for bankruptcy during the first quarter of 2015. This in turn, caused the 25,000 employees to lose their job. 25,000 workers seems like a lot of people but compared to the GM those are small numbers. Let's scale that figure up; GM a member of the Big Three was on the brink of bankruptcy during 2008. GM was currently an employer of over 212,000 people. If they were to fail, all 212,000 employees would be unemployed and searching for a new job. This doesn't account for the suppliers, “the people that source parts for the cars.” If GM were to go belly up over 2.7 million suppliers would've been affected by the bankruptcy; which is almost 0.5% of the total unemployment in the United States. This may seem like a cruel comparison at first but RadioShack’s economic footprint isn’t anywhere near GM’s, so letting RadioShack fail wasn’t a big deal compared to GM . With the amount of people depending on the success of GM, it’s simply too big to fail.

Flourishing automotive cities like, Flint, and Saginaw were homes for 100,000 GM employees . As competition began to get bigger GM started building car parts in china in order to save money while still producing the same product “Globalization” . The problem with this was, Flint and Saginaw become ghost towns because these towns were ruled by GM. Once prosperous cities now nothing. Now imagine every single GM plant not just one failing. What happened to Saginaw and Flint would happen to every company, city , individual connected to GM. Global businesses would even be effected, Takata a air bag supplier would be affected, Michelin GMs tire suppliers would be affected, and most importantly the rest of the 2 plus million suppliers and employees. This gives even more reasons why bailing out GM was essential because it was simply too big to