vendredi 7 mars 2014
Jack Stupp, Jeff Bezos, Ronald Sargent and you!
For many people, the mention of Jack Stupp does not ring a bell. But if I say “Consumers Distributing ", then it might remind you some memories . Jack Stupp and Sydney Druckman opened their first store in Toronto in 1957. At its peak, the company had more than 250 stores in Canada and 250 stores in USA. After many ups and downs and changes of ownership, the company filed bankruptcy in 1996.
Amazon, a Fortune 500 company based in Seattle (market capitalization of USD $ 171 billion), founded by Jeff Bezos in 1994, now offers the widest selection of products in the world.
On second thought, the business model of Consumers Distributing and Amazon is strangely the same... except for one aspect: the Web. While Consumers Distributing was trying somehow to find ways to renew itself, a visionary thought of the Web to create one of the biggest consumer products companies in the world.
Does the name of Ronald Sargent ring a bell to you? He is the CEO of Staples. He announced this week (March 6, 2014) the closure of 225 stores by the end of 2015 (a total of 1,846 stores in North America) . Only last year, Staples had closed 42 stores. The reason: in-store sales are down 7% while online sales increased by 10%. Some analysts suggest that Staples should close 500 stores. To be continued...
I recall the stories of these companies to reflect this :
- Some leaders have failed to find ways (often "out of the box" ) to maintain the continuity of their business.
- A visionary created from scratch a virtual company and continues to invest heavily in optimizing its offer (more products) and operations (think of the drones for delivery) .
- A CEO who does not hesitate to take steps - transforming his business - to meet the expectations of consumers and especially to continue to create wealth for shareholders.
Are you in control of the economic and competitive health of your business? Are you reactionary or proactive? Do you have a clear and precise strategy on how to invest in the future and create wealth for your shareholders?