Business as a Swiss Army Knife - no comments
Wednesday the 8th of March, 2006 | Articles | Business | Marketing |
Look at the “classic” Swiss Army Knife. It has a blade, scissors, nail file with screwdriver tip (very functional), toothpick and a pair of tweezers. This is not a great many tools, but in most situations these 5 tools can be great help. Let’s compare this with the “Swisschamp.” We now have 22 tools, some of which include a fish scaler and a corkscrew. So when you catch that fish in the wilderness you’ll be able to open a proper bottle of white to accompany it.
What does this have to do with business? Let’s look at a business we can analyze like the Swiss Army Knife, Walmart. Walmart has a great business model going, selling everyday products to everyday people for less. Even better than their business model is their placement of stores. Located smack dab in the middle of rural America, driving every competitor clear out of their way. I know the Mom and Pop stores suffered, but I also remember once paying $8 more than average to a Mom and Pop for a bottle of vodka. Sure he was a small business man, but the only time this man got up from reading the paper was to ring up my uber expensive bottle of booze, then tell me he didn’t take checks or credit cards.
Walmart isn’t perfect however, they veered away from their “classic” status and tried to become the “WalmartChamp” when they entered the online video rental business. Netflix created this market in the late 90’s and have grown to be such a threat that Blockbuster and Walmart both wanted a piece of the action. I can understand Blockbuster, video rentals are their business, but Walmart? Remember Walmart’s business model, everyday products for everyday people. Since when do everyday people rent videos online? I’m sure some do, but it is not mainstream nor will it be for several more years. In the end, Walmart wised up and hired Netflix to handle that aspect of their business.
How does this relate to us, the small business folk? Look at Walmart’s stumble as a lesson learned. Do what you do best and don’t stray too far from what you know. With the capabilities of the web going further and further, you’ll always be able to find areas for growth within your industry and market niche.
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