“Success is achieved by developing our strengths, not by eliminating our weaknesses.”
– Marilyn vos Savant, who once possessed the highest documented IQ in the world, according to Guinness’ Book of World Records
Yes, I realize that Marcus Buckingham should have led off today’s post, after nearly 20 years of touting his Strengths-based leadership beliefs. That would have been too convenient though — and I like the simplicity of vos Savant’s approach to the topic.
Whole Foods has announced that they’re going to open a new, low-priced “sister chain” aimed at attracting younger customers with whiz-bang design and high-tech interaction. The very things that would likely cement their relationship with high-end consumers, since Whole Foods is the go-to provider of organic, natural and yes, higher cost groceries. The race to the lower end of the market doesn’t make sense.
Mercedes is the go-to for luxury sedans, and BMW is the go-to for luxury coupes and Range Rover is the go-to for luxury SUV’s. Yet, we don’t see them (save for a failed experiment by Mercedes years ago to get in to a lower-priced category…) trying to glut the market with $25,000 cars.
Whole Foods says they’re responding to market pressure from Costco, Wal-Mart and others who are getting in to the organic-food niche, and I’m not here to say it won’t work, just that I don’t think it will.
Primarily, I’m here to say that being publicly traded incentivizes bad decisions.
“Grow or die.” That’s the mantra of publicly traded companies. Privately held firms, unless they’re ruled by a private equity investor hell-bent on “turning” the company, can make sounder, longer view calls on strategy. Calls that are based in strengths. Calls that are more about brand enhancement than brand extension.
If “IPO” is the holy grail, it might be better to start now making the sell-our-souls kind of trade-offs it will require, rather than throw a complete curve ball at the customers who brought us to the dance.
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