Selling to Wal*Mart (Or Not)
January 6th, 2006 | Published in Growth Mgmt.
This article came to my attention via a Berkeley, California blogger who goes by the name Kos.
The article is a brilliantly written account of one company’s unconventional growth management strategy; they decided it would be in their best long term interests to pull their products out of Wal*Mart stores.
They turned their back on tens of millions in revenue. Pretty bold.
The author of the piece, Fast Company senior writer Charles Fishman, has done something that I wish Fast Company would do more of; he’s explored the relationship between fast growth and smart growth. The story seems to run counter to the typical Fast Company flashiness, newiness, and consumer oriented fastiness.
Anyhow, Fishman’s long story is well worth a read if you have any interest in:
- growth management
- brand differentiation
- long term business thinking
- living local economies, and
- resource efficiency
The story is focused on Jim Wier, CEO of Simplicity, the parent company of Snapper brand lawn equipment. In explaining his decision, Wier is quoted:
“I’m probably pro-Wal-Mart. I’m certainly not anti-Wal-Mart. I believe Wal-Mart has done a great service to the country in many ways. They offer reasonably good product at very good prices, and they’ve streamlined the entire distribution system. And it may be that along the way, they’ve driven some people out of business who shouldn’t have been driven out of business.” Wier wasn’t going to let that happen to Snapper.
Most people don’t think of members of Wal*Mart’s supply chain when they worry about who Wal*Mart is driving out of business. It’s a fact that Wal*Mart’s business practices can make life notoriously difficult for suppliers.
Generally it seems that people are more concerned about Wal*Mart’s predatory behavior, and the affect they have on prior local economic models. Others are rightfully concerned about Wal*Mart’s dismal track record in how they treat their employees.
Still others are concerned about the China price phenomenon, balance of trade, and the rampant offshoring of design, manufacturing, and innovation. Then there’s the fact that many of what were once durable goods have been increasingly supplanted in the market by dirt cheap, semi-disposable substitutes.
In the coming days I’m going to post some thoughts about Wal*Mart. They’re in draft form now, and well, I really need to migrate the blog to a new server. Please be patient. Thanks.