Sam Walton Lived and Breathed His Strategy
In reference to Sam Walton's goal of offering the lowest prices at all time, he never strayed off of his purpose to take up the next flavor of the month.
Here's how he described it:
"Here's the simple lesson we learned -- which others were learning at the same time and eventually changed the way retailers and customers buy all across America: say I bought an item for 80 cents. I found that by pricing it at $1.00 I could sell three times more of it than pricing it at $1.20."
With that as the foundation, Wal-Mart (WMT) has continually focused on that as their primary goal. The importance isn't so much what the strategy is, the importance is that once you understand what it is you're going to make as the unique selling proposition of your business, you never go off of it.
That was the problem recently when Wal-Mart tried to edge in on Target's (TGT) territory and offer more upscale discounted merchandise, they failed miserably - as they should.
They've spent decades building up the business based on a specific model that is embedded in the hearts and minds of its customers. Even changing it in some of its merchandise caused a rebellion among its customers who voted with their dollars not to participate.
Walton teaches us to never move off of our purpose. The great business leaders and successful businesses never do. We should never move off of our reason for existence.
Other Sam Walton Sources:
Sam Walton: 10 Rules for Building a Successful Business
Sam Walton - Retail Success Story
Sam Walton: King Of The Discounters
Sam Walton: Great From the Start
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