Are you focused on doing those things you do well? No.
Don’t feel too bad. You’re not alone.
On December 28th, 2010, (which in the digital age is an eternity ago, I know) Crain’s Chicago Business posted an article on Sears. Apparently, Sears announced that it would be launching a video download service. (Link Here)
The service (named Alphaline Entertainment) will allow users to download movies the day they are released on DVD or Blu-ray. Television shows will be available the day after they air, according to the article. Alphaline will be powered by RoxioNow, which according to people much smarter than me has been rejected by the bigger players because of technical issues and operational limitations.
Within minutes of the posting, Ken Leonard, of Leonard Associates, offered his thoughts on the decision. (Link Here)
Take three minutes and read his analysis. I think it is right on the money. And besides, he has one of the best quotes I’ve seen recently, “…always try to be the best at what you do best.”
Sears is in trouble. This is not news. They have not focused on what they did best. They are following industry trends (poorly) instead of doing what they know how to do well.
What does Sears do well? Well, my parents own a Kenmore washer and dryer set. I’m in my 40’s and the set is older than I am. Guess what? Both units still work.
I have a set of Craftsman tools that are OLD. (I may have been 18 years old when I bought the set.) Guess what? THEY still work. You can’t break Craftsman tools. Sure, I paid more for them then I would for the Home Depot (or Lowe’s) brand…but I don’t care…they last forever.
What does this have to do with Foodservice Beverages you ask?
How many beverage companies have not held true to what made them successful in the first place? Do I need to say anything other than “New Coke”? I probably do since New Coke was introduced in 1985, a few years before our college intern was even born.
If you want a more recent example, look at Tropicana circa 2008/2009. (C’mon, you know where I’m going, right?) Tropicana led the market in “not from concentrate” orange juice. A distraction, in the form of a packaging change, caused them to lose 20% of their unit sales in less than 2 months (January 1st thru February 22nd, according to Information Resources, Inc.).
Both beverage companies were able to refocus and recover from their distractions. The jury is still out on whether Sears can right the ship, but I have my opinion.
I’m going to borrow Ken’s phrase, and adapt it slightly…
Focus on doing those things you do best…
In order to do that, you need to know what it is you do best. That may take some introspection. But, once you have figured out what those things are…do them better than anyone else and you will soon be an industry leader.
If you can't figure it out, you are destined for irrelevancy...say hello to Hollywood Video and Circuit City while you're there.
No comments:
Post a Comment