This session examines the strengths and limitations of the mega-chains' strategies and reveals the independent's points of advantage, assembled in a business model that emphasizes customer intimacy and flexibility to customize a value offering. The message that comes across loud and clear - savvy strategic innovation beats size!
ATTENDEES WILL BE ABLE TO:
Recognize the strengths and weaknesses of the mega-chain's strategies by unbundling the elements of their business models.
Understand the sources of differentiation (other than price) available to the creative independent retailer that mega-chains are hard pressed to match.
Face the necessity of strategic focus--having an effective strategy requires giving up any attempt to be all things to all shoppers.
Apply creative thinking skills to rethinking store formats, merchandise, associate's roles, and unique services to bring new value to their market niche.
Three approaches for anticipating customers latent needs that is, what they might value but would never think to ask for.
Superior service opportunities and unique service roles
Minimally contested customer segments your text.
How to Out-Strategize
the Mega-Chains to Create your Own Low Hanging Fruit.
Super centers. Consolidating chains. Wal-Mart. It's a case of pick your poison for independent retailers who dare to compete against them on price. But every business strategy comes with vulnerabilities, and these 800-pound mega chain gorillas are no exception.
Peter Drucker claims Wal-Mart's greatest strength in their ability to anticipate customer's needs, often taking 2-3 weeks to recognize an emerging trend, when other retailers take 2-3 years. To avoid competing on price, independent retailers must become adept at recognizing customer's "latent" needsthat is, what they might value wouldn't ask for.
