Sam Walton was an avid pilot who owned his own small planes. It was part of his thinking small strategy. He flew himself to rural stores that would one day number in the thousands. Competitors like Sears and Kmart weren’t doing this. Flying to his stores let him hear directly from frontline associates. Walton’s edge […]
How Sam Walton Built a $50 Billion Company by Thinking Small Strategy Read More »
Moonlight rides gave Sam Walton a way to connect with his logistics team. He often spent nights riding in the cabs of Walmart delivery trucks. He wanted to hear what drivers were seeing. On one of those late-night trips, a driver suggested backhauling, picking up merchandise on the return trip instead of driving back empty.
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It was the early 1960s in Bentonville, Arkansas. Walmart founder Sam Walton wanted to spend less on marketing so he could charge less. That meant unconventional, low-cost ways to get attention. It was all part of his customer-first business strategy. As part of it, he offered discounted watermelons and free donkey rides. The goal was
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In 1954, Ray Kroc’s McDonald’s success story almost didn’t happen. At the time, he was a 52-year-old milkshake machine salesman with diabetes and arthritis—and very little to show for it. Most people his age were slowing down. Kroc was just getting started. That year, he visited a small restaurant run by the McDonald brothers in
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A McDonald’s franchisee in Knoxville once called Ray Kroc with a problem. A competitor down the street was selling hamburgers for a lower price. The franchisee wanted permission to match the price. Kroc said no. If a competitor could win on price alone, Kroc said, McDonald’s deserved to lose. It sounded irrational. It wasn’t. The
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In 1954, Ray Kroc received an order that made no sense—an order that would later become one of the most famous Ray Kroc lessons in entrepreneurship. One hamburger stand in San Bernardino wanted eight milkshake machines. Eight. Kroc had spent years selling the machines and rarely convinced anyone to buy even one. Most restaurant owners
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It’s the early 1980s. Milan. Howard Schultz is in town for a housewares show. The city’s espresso bars stop him cold. They are community gathering spots, a “third place” between home and work. This is the seed of the Howard Schultz leadership style. Baristas knew customers by name. Coffee wasn’t a transaction. It was a
Howard Schultz Leadership Style: Conviction Built Starbucks Read More »
Howard Schultz stops mid-stride on a Manhattan sidewalk and stares at a bright red “80% off” sign screaming from a boutique window. The world is on clearance. It’s the peak of the financial crisis. Storefronts are plastered with “For Sale” signs. Even Madison Avenue is begging customers to buy. Retailers are cutting prices at any
Starbucks Pricing Strategy: Why Howard Schultz Refused to Discount Read More »
Starbucks was in trouble. Nearly 20% of the new stores opened during its aggressive expansion were closing. Customers were pulling back. Construction costs were spiraling. Founder Howard Schultz was scrambling to steady the company. There was only one way out: refocus on the customer and rebuild the Starbucks turnaround strategy from the ground up. In
Starbucks Turnaround: How Howard Schultz Saved the Brand Read More »
In the middle of trying to land a rocket that no one had ever landed before, SpaceX stumbled into the problem that became its greatest competitive advantage. The kind of problem that makes sensible companies quietly change the subject. SpaceX leaned in. Instead of asking whether a reusable rocket was practical, Elon Musk asked why
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