Andrew Young's Wal-Mart Comments - the Real Dogfight with Small Business

When Andrew Young was interviewed by the Los Angeles Sentinel, he made disparaging remarks about Wal-Mart and neighborhood businesses. A spokesperson for Working Families for Wal-Mart, Young had been hired to help improve the image of the giant retailer. Young focused his remarks on the business skills and character of the owners of America's small businesses, particularly non-African American minority-owners. This ultimately cost the former Atlanta Mayor his job at the public relations firm.

Young would have done better to have reflected on a famous quote by Dwight David Eisenhower, “What counts is not the size of the dog in the fight; it's the size of the fight in the dog.”

If it were true that Wal-Mart had the ability to run businesses out of business, we would see entire vast corridors of boarded-up storefronts within 2 miles of every Wal-Mart. Quite the opposite is true. If a strip shopping center includes a Wal-Mart, the other businesses in the shopping center seem to thrive.

Why then is there this feeling that Wal-Mart runs other retailers out of business?

Wal-Mart success is based on one simple principle: low prices! When Wal-Mart comes to town some retailers feel they must compete against Wal-Mart by offering lower prices. People who do this are focusing on the size of the dog instead of coming up with their own fight plan. You cannot compete against Wal-Mart if price is your basis of competition. Hundreds of large former retailers already learned that lesson. Business owners quickly give up this fight because they know that they cannot battle Wal-Mart on price alone. The Wal-Mart dog is simply too big and their knowledge of the price battlefield is too extent.

To successfully compete against Wal-Mart you must ignite your spirit to fight in a game that Wal-Mart cannot win. There are several games that Wal-Mart simply does not wish to play. First is the battlefield of assortment. Wal-Mart's business model demands that they carry fewer items in each category. However a hungry dog can carry a wide breath of items, giving them a competitive advantage for a customer base that wants to make their own size and brand selections.

The second Wal-Mart-free battlefield is customer service. Although you can find great customer service at Wal-Mart, there is a different type of customer service that smaller business can offer. Wal-Mart associates can smile and even walk you to guide you are looking for, but it is doubtful they will ever learn the customer's name. Even a big dog like Walgreens can successfully compete against Wal-Mart in this venue. They will call customers when a prescription is due, ready, or delayed. They will call a doctor's office on behalf of the customer. Wal-Mart simply is not staffed for this kind of service.

So remember, it's not the size of the dog in the fight that matters as much as it is the size of the fight in the small-business owner.

Article Source: http://www.new.citynewslive.com

Rick Weaver is an accomplished business executive with a wealth of experience in retail, market analysis, supply chain enhancement, project management, team building, and process improvement. Rick career began in retailing as a stockclerk, eventually becoming the Director of Vendor Development at Kmart Corporation during it’s heyday. In this position he worked with hundreds of Kmart’s suppliers to improve mutual processes, procedures, and profits. As a consultant, Rick has worked with companies in various industries to develop leadership and business strategies. As an entrepreneur, Rick has founded or co-founded six successful organizations, including non-profit and for profit. Now in his role as president of MaxImpact, Rick uses his vast experience helping individuals connect to their dreams and teams connect to a common vision. Rick’s presentation style of blending humor, real life examples, and easy to implement ideas has made him a popular speaker at seminars, workshops, and conferences in in 43 states, Canada, and Puerto Rico. (c) Max Impact Corporation

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