Note to Rite Aid and CVS: It's not about the economy
When Bill Clinton successfully unset the first President Bush, he focused on a sign in his Little Rock office: "It's the Economy, Stupid". His point was to focus his campaign on economical issues. Although the president has an impact on the economy of the nation as a whole, blaming the economy for poor sales or lost profits is nothing more than unmerited whining.
In the state of Michigan, unemployment was the highest in the nation. At the same time, job growth was the lowest. This is not an economic scenario that normally leads one to invest heavily in a market.
CVS and Rite Aid decided to ride out Michigan's economic storm, setting aside little capital to revitalize or grow their Michigan stores. Although seemingly an intelligent viewpoint, it does not display a passion to compete and grow over the long haul.
Walgreen's Pharmacy saw Michigan through a different paradigm. They saw the opportunity to invest heavily in the state, taking advantage of the weak economy and depressed prices. Rochester Hills, Michigan, is an example of Walgreen's strategy. Only a few years ago, this city of 70,000 did not have one of their stores. By 2006, Walgreen's will complete a strategy to have four stores within city limits. The strategy was to locate stores using a parameter mentality, and a merchandise mix recognizing the local economy.
Both CVS and Rite Aid have experienced lost market share, greater than the increase in competition. Neither chain is growing in Rochester Hills, although CVS did move one store from the center of a strip shopping center to a new location in the parking lot.
According to high-ranking sources in Walgreen's Michigan region, there is a strong belief that by moving in now with the right merchandise mix and locations, the chain will be strongly positioned once the Michigan economy rebounds.
Where CVS and Rite Aid see a need for cautious survival strategies, Walgreen's sees an opportunity to grow and thrive. The lesson is obvious. Instead of whining about the economy, looks for ways to adjust your product offering to the times, and position yourself to thrive once the economy rebounds, or your competition succumbs on their unsuccessful pathway of survival.
Many Michigan-based companies are finding ways to attract out-of-state customers. At Max Impact, a human potential development company has made two strategic moves to thrive despite local economic conditions. The company has aligned itself with Macomb Community College to offer online customized corporate training programs, carrying CEU credits for the participants. They have also increased marketing of executive and professional coaching, which is done via the telephone, outside of Michigan. While many of their competitors struggle, the Max Impact is seeing double digit sales and profit growth.
It's not about the economy. It is about seeing the total business environment and developing a strategy to position for the present and future.
Rick Weaver is President of Max Impact, a national leadership and organization development company based in Rochester Hills, Michigan. Rick is an accomplished business executive with experience in retail, market analysis, supply chain and project management, team building, and process improvement. He has worked with hundreds of companies to improve sales, processes, and bottom-line results. MaxImpact offers leadership and organizational development services along with employee assessments and background checks. Contact Rick at 248-802-6138 or via email, rick@getmaximpact.com. MaxImpact is on the web at rick@getmaximpact.com
house refresh service Park Ridge ...One of the most important initiatives in the domain of... Read More
Why cut costs now? Efforts are multiplying to cut costs... Read More
The goal of almost every business owner is to generate... Read More
How are you feeling today? Good, not so good, great?... Read More
How often does your company make a quantum leap forward?... Read More
This will make some people angry as hell, but it's... Read More
In 1989, Sony founded its Institute of Wisdom at the... Read More
You might be thinking to yourself, "Why should I waste... Read More
Writing a business plan is an essential part of the... Read More
"I don't need a business plan."Neither did Alice in Wonderland."Would... Read More
For many consumers and producers, MSP is an acronym for... Read More
In 1997, David Steele was making the transition from a... Read More
Much of what we heard in the mass media about... Read More
Q: A key investor in my business has suggested that... Read More
If you are looking for a partner, funding, angle investor... Read More
Every new business owner knows that a business plan is... Read More
Building a dynamic small business is a constantly evolving, increasingly... Read More
1. Largest Selection -One way that you can make your... Read More
Storytelling and writing a business plan actually go hand in... Read More
If you own the mid-size business and actively work in... Read More
Is there a 'magical' way to exponentially grow your business?It's... Read More
Writing a business plan can be tricky when all the... Read More
Diversify - to make diverse, give variety, to balance, to... Read More
The decision to sell, or not to sell your business... Read More
Is your business growing as fast and effectively as it... Read More
maide service in Buffalo Grove ...Would you like to jumpstart your online or offline business... Read More
If you own a pressure washing business one of the... Read More
The format of a Business Plan is something that has... Read More
Writing a business plan to help you direct and manage... Read More
I am not a big fisherman, but I do enjoy... Read More
The decision to sell, or not to sell your business... Read More
There is a story, about a business owner who wasn't... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
Writing a business plan is an essential part of the... Read More
The time when a website was just a simple set... Read More
As a franchisor it is imperative that you seek, find... Read More
We all know that nothing runs without a plan, and... Read More
A survey released by the American Institute of Certified Public... Read More
I'm not talking about posting the HBO schedule on your... Read More
When developing the competition section of your business plan, companies... Read More
Does the competition drive you crazy?Are they relentless about taking... Read More
Microsoft Great Plains, former Great Plains Dynamics is excellent fit... Read More
More than $117 billion passed hands from Internet shoppers to... Read More
Why do so many companies languish and watch as their... Read More
Are you frustrated by the lack of growth in your... Read More
David E. Gumpert, author of Burn Your Business Plan, often... Read More
The trick is to determine what uniquely identifies your best... Read More
Anyone who has been watching the Idaho Market Carefully for... Read More
Growing your own small business can be one of the... Read More
Where would your business be without a proper plan? A... Read More
Strategic Planning |