Transcript Green Steps being part of a CLER* community

What To Do When A Giant
Moves In Next Door
Why are we here?

to figure out what the
effect of Walmart’s arrival
will probably be on your
businesses

to debate whether
Walmart is a force for evil
or a force for good
• in the world
 suppliers
 consumers

• in communities
to figure out what to do
about it
 retailers
 downtowns

 employees
to debate whether
Steinbach should have
tried to keep them out
Probable Effects


fears & hopes
media stories
?
anecdotes

experience
?
research
Yogi Berra
It's tough to make predictions,
especially about the future.
Probable Effects

experience
Ille des Chenes
Saint Adolphe
Niverville
Ste Agathe
Steinbach
Otterburne
Kleefeld
St-Pierre-Jolys
Grunthal
Morris
Saint Malo
Probable Effects
research
• North & South Dakota, Minnesota, Wisconsin, Michigan, Montana

Fitzgerald, Wirtz, Federal Reserve Bank of Minneapolis
» The Wal-Mart effect: Poison or antidote for local communities?
• Mississippi, Iowa

Stone, University of Iowa
» The Economic Impact of Wal-Mart Supercenters on Existing Businesses in
Mississippi
» Impact of the Wal-Mart Phenomenon on Rural Communities
» The Effect of Wal-Mart Stores on Businesses in Host Towns and Surrounding Towns
in Iowa
• Nebraska
 Rosenbaum, University of Nebraska at Lincoln
» Big Box Stores: Their Impacts on the Economy and Tips for Competing
• US overall

Jarmin, Center for Economic Studies, US Bureau of the Census
» The Role of Retail Chains: National, Regional, and Industry Results
Probable Effects
research
groceries
restaurants
furniture
building supplies
specialty*
general merchandise
in
Steinbach
surrounding
area

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?
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*gift shops, jewelry stores, book stores, sporting goods…
Why are we here?
 to figure out what the effect of Walmart’s
arrival will probably be on your businesses
 to figure out what to do about the probable
effects
product
features
 range
 quality
Why do people
buy from one
place rather
than another?
 desirability
 uniqueness
service
execution
 convenience
 relationship
 friendliness
“What’s my
value
proposition?”
“values”
price
 trust
Value Proposition
to be useful, a value proposition must be
 achievable
 distinctive (usually)
 hard to copy
 valued
• by enough people
• who are willing to pay you a profitable price
• that you can reach
Value Proposition Options
PRICE
Direct
PRODUCT
FEATURES
Tangible
SERVICE
EXECUTION
Availability
price
range / options / choice
timing
discount structure
quality
convenience
rebates
performance
delivery
credit rates
proprietary properties
Indirect
financial assistance
capital vs. operating
Reliability
pre- & post- sales service
guarantees
Intensity
sales hustle
Intangible/Image
life cycle cost
design
cost absorption
fashions
prestige
“personality”
service hustle
relationship
friendliness
trust
Strategy on a Post-It
Making a Strategy Real
value propositions
start
stop
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What To Do When A Giant
Moves In Next Door
Additional Slides
Service Quality
Location, Pricing & Promotions

offer delivery/pick-up services


offer expedient check out

offer classes & workshops
• actual customer traffic

learn your customer’s name & use it
• nearness to competitors

know your customer’s specific needs
• construction growth patterns

record all complaints, find their causes
and solve them
• real estate costs
• insurance costs
• zoning restrictions
Merchandising

reorient business by providing products
not provided by Walmart

target specific customers

reward loyal customers.

provide high quality products

focus on a narrow range of products

offer longer opening hours

form a coalition of local businesses to
compete against Walmart
source: Rosenbaum
location should fulfill the following criteria.
If not, consider relocating:
• tax breaks

decrease prices on price sensitive
products carried by competitors and
increase prices on those not carried by
them
Competitive Strategy

understand your industry and current
trends and update plans accordingly

improve inventory management by
analyzing trends in historical data with an
automated accounting system
place: Mississippi
time: 5 years
source: Stone
place: Mississippi
time: 5 years
source: Stone
place: Mississippi
time: 5 years
source: Stone
place: Mississippi
time: 5 years
source: Stone
place: Iowa
time: 3 years
source: Stone
place: Iowa
time: 3 years
source: Stone
place: Iowa
time: 3 years
source: Stone
place: all US
time: 25 years
source: Jarmin
place: all US
time: 25 years
source: Jarmin
place: all US
time: 24 years
source: Jarmin