One of the best CEO’s on the planet was Jim Sinegal from Costco (he stepped down recently after a 30-year run as co-founder and CEO).
During a recent interview with SmartMoney when asked why he opposed a proposal by California to keep out Wal-Mart but allow Costco – he said…
“I always oppose these kind of things. Competition makes us better. Some of our best stores have a Sam’s Club next door.”
Let that sink in for a minute.
He not only embraces competition, he WANTS he wants them right next door.
Jim knows he will beat the competition because he is obsessed with one thing.. offering the lowest price. That’s everything. It’s in their DNA. In fact, they still offer a hot dog and soda for $1.50, and have kept the price the same for decades. They now manufacture their own hot dogs to keep the cost so low as other costs continue to rise.
Low prices is their competitive advantage, so I’m not saying YOU have to undercut your competition. But you do need something to differentiate from your competitors – and WIN.
So the next time you get scared about entering into a market with strong competitors, think about Costco – and embrace them.
In fact, you should want people to compare your products and services to your competition because YOU will win. And if you’re not confident you have a unique advantage, strengthen your advantage even more until it becomes crystal clear.
Now if you’ll excuse me, I have to go to Costco and buy 300 rolls of paper towels.
Coach Lee.. out.
DO YOU EMBRACE YOUR COMPETITION?