Think you're safe from the world's largest retailer?

From Forbes Magazine, "NEW YORK - Wal-Mart Stores' 5,100 stores worldwide suck up $1.1 billion worth of electricity annually for air-conditioning and lighting. Now the Bentonville, Ark., giant has itself entered the power industry." That's right, the world's largest retailer is now buying electricity wholesale for use in its Texas stores. The article points out that while it's unlikely that Wal-Mart will enter the power business, there is nothing to prevent them from selling their excess electricity to consumers.

What next? Who knows? But consider this: no matter what business you're in, there's no reason to think that you're immune to price competition. As soon as you get big enough to be noticed, you're likely to become a target for a price-cutter.

So, what do you do? I would suggest that you must make your offering unique. You must be different. What features or services can you pack into your product or service that your customers just have to have? What is it that they are willing to pay more for?

Strategic Planning is the second of the Baldrige criteria for a reason. We must look into the future and decide where we want to be. Part of the process is looking at all the possible scenarios. Whatever your industry, is it possible that a mega-company may become your competitor? Or, through acquisitions and mergers, is there a giant competitor in the making?.

The recent merger of Federated and May department stores is sure to have a dramatic affect on the retail landscape. Did their competition consider this possibilty? I guess only time will tell..

Categories: competition, strategic, planning, wal-mart