2.23.2006

TIP: Feed off your opponent's success

CNNMoney - The common wisdom is that Wal-Mart's competitors sweat bullets when the undisputed 800-pound gorilla of retailing says it's going to play in their backyard. They fear the king of bottom-barrel prices will steal their business, eventually forcing them to drop their shutters, load up the wagon and scout out a "Wal-Mart-free" zone elsewhere.

However, not everyone is spooked... Wal-Mart's become a preferred co-tenant to retailers such as Fred's, Aldi and Anna's Linen because when it breaks ground in a new area, these retailers view it as an opportunity to piggyback off its traffic. "In retailing, the whole name of the game is to feed off your competitors' footsteps. Wal-Mart is the biggest traffic generator around. It gets over 150 million customers a week," "Retailers only have to look at the profile of a Wal-Mart customer and their spending levels. Those retailers that fit the target should try to compete with Wal-Mart on convenience and price," Maurin said.

Category: C++ Quant > Fix the Job You Got > Opportunity vs Trap

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