"Here
today, gone tomorrow"-this has been the fate of many
strategy buzzwords in the 21st century business
world. Many strategic tools come as fads with the changing
times and needs of different organizations and fizzle out,
taking with them the companies that implemented them. Is there
no way of knowing what kind of strategies or management practices
could lead to sustained business success year after year?
And, if there is a way to be a winner in a continuous manner,
why is it that only a few names manage to feature in the winner's
list and further sustain it? Is there something that the winners
know and other organizations do not?
Dollar
is a Fortune 500 retail giant Company, running over 5,000
stores all over the world. With an annual sale of $5 bn, this
company opens two new branches on every business day. Dollar's
success, according to the company's Chairman, is all about
`doing more for the customers than anybody.' It is quite an
unpretentitious and unfashionable retail chain with such an
outstanding and remarkable success. Dollar has adopted the
practices, implemented them in myriad ways and derived immense
benefits in the bargain. The company maintains a clear focus
on its target segment (low-income customers) and provides
them with high quality goods at the lowest possible price.
It
maintains a clear and intensive focus at its chosen market
segment of low-income customers. The foremost strategic purpose
of Dollar is to help its customers improve their standard
of living by selling them high quality goods at the lowest
possible prices available. The company never diverted from
its core policy and the present situation proves that Convenience
and Pricing were the two unique features of Dollar's strategic
policy. By implementing the above policy effectively, it had
a record of delivering consistently on its promise to provide
quality goods at everyday low prices. Further, by maintaining
these strategies flawlessly, Dollar is expecting to raise
its profit margins significantly in future, even without increasing
prices. The company's corporate culture was designed to support
the highest possible levels of performance. It did not have
any layers of bureaucracy hampering its functioning and always
preferred to be lean, trim and responsive, irrespective of
whatever came. After all, productivity is a by-product of
operations that are easy to run, and bureaucracy kills this
swift running of the business. |