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Strategies for a discontinuous future.












Saturday, November 15, 2003
 


Article of the Week

This is probably one of the best illustrations I have ever seen of the destructive effects of price competiton- and why it's a misguided strategy. Also a killer example of the games businesses play. In this case, the example is Wal-Mart.

"...There is also no question that doing business with Wal-Mart can give a supplier a fast, heady jolt of sales and market share. But that fix can come with long-term consequences for the health of a brand and a business. Vlasic, for example, wasn't looking to build its brand on a gallon of whole pickles."

Also notes that the only strategy to really keep margins high as a supplier (since Wal-Mart is always trying to force them down) is to innovate - the results of a Bain study. What a surprise.

Phenomenal stuff, written by someone who gets business. Pick of the week.

-- umair // 1:13 AM //


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