| "> | | | | world at, his main competitor was diluting their |
| What is the highest performing stock in terms of | | | | efforts in the drugstore business by acquiring |
| total return over the over the course of the past | | | | completely unrelated businesses. Eckerd took their |
| 40 years? It's not Microsoft. No, its not Cisco | | | | eye off the ball and began losing market share to |
| Systems. It's not GE. It's not even Intel. | | | | the ever nimble and convenience-centered |
| What is the highest performing stock in terms of | | | | Walgreens. |
| total return over the over the course of the past | | | | Cork knew that if he could buy up real estate |
| 40 years? | | | | that was convenient to consumers, place stores |
| Its not Microsoft. No, its not Cisco Systems. It's | | | | in high traffic spots which with multiple entry and |
| not GE. It's not even Intel. | | | | exit directions and add convenient high margin |
| You ready? | | | | services such as film developing, check cashing, |
| Its Walgreen's Drug Stores. | | | | drive-through pharmacies and automatic teller |
| Walgreen's? You gotta be kidding me! The | | | | machines, he could get the walk in traffic as well |
| drugstore chain? Yep, its true. How they did it is | | | | as the high margins that would make his company |
| even cooler than that fact that they did it in the | | | | and its profits soar. He was right. |
| first place. | | | | More convenience led to more customer visits |
| In his book Good to Great, Jim Collins investigates | | | | which led to more profit per customer visit and |
| how they actually did it. And the answer is very | | | | so on and so on. |
| simple. All that Cork Walgreen, the founder of | | | | Meanwhile, Eckerd was ultimately bought out by a |
| Walgreen's did is that he took a long hard look at | | | | private investor group in the mid-80's. For the |
| what his business did really well and then | | | | next decade Eckerd swung from strategy to |
| channeled all his energies into that one thing. In | | | | strategy, trying desperately to fin that one "home |
| essence, he figured out exactly what Walgreen's | | | | run" strategy to complete against the |
| could be the best in the world at and channeled all | | | | well-entrenched and highly focused Walgreen's |
| of their efforts into achieving that one thing. | | | | chain. They were fully acquired by JC Penny in |
| So what exactly was this "breakthrough" | | | | 1997. Walgreen's was the clear winner. |
| concept? Simply this: to have the best, most | | | | Before you start teaching and coaching your |
| convenient drugstores, with a high profit per | | | | salespeople to sell, you first need to determine |
| customer visit. That's it. That's the formula for | | | | what to sell. In an ever-increasing world of |
| creating the single most successful company in | | | | commodity selling, this lesson will focus on |
| terms of market return in the past forty years. | | | | determining which products or service of yours |
| When Walgreen's first started out, they had | | | | will give you the best chance of un-commoditizing |
| businesses in a lot of different areas, and they | | | | yourself. |
| didn't do any one of them particularly well. First | | | | OK, so you and your competition are virtually the |
| they had restaurants (named Corky's after their | | | | same in so many ways; they provide a good |
| founder and CEO), which didn't do so well, but | | | | service and so do you. Your internal operations |
| were more of an emotional attachment to those | | | | people screw up regularly and so do theirs (or |
| that worked at Walgreen's. Founded in the 50's | | | | course it's never the sales guy's fault!) Their |
| Corkys was a legendary stop for travelers | | | | product does what it says it will do and your |
| passing through small towns in the Midwestern | | | | product does what it says it will do. They have |
| United States and along side motels in the deep | | | | service issues, you have service issues. |
| South. Corky's consistently pumped out steady | | | | However, when you really take a look at what |
| profits, selling their hamburgers, shakes and ice | | | | they sell and what you sell, there have to be |
| creams. | | | | some small differences. Even an infinitesimal, |
| In the 70's Cork himself realized the future of the | | | | minor, only is certain circumstances difference has |
| company was elsewhere and despite the | | | | to exist between you and them. Maybe your |
| emotional attachment to the Corkys chain, he | | | | service plan is slightly better. Maybe your |
| sold it all a competitor so he could focus on his | | | | customer care people are open a little bit longer |
| drug store business full time. As soon as Cork | | | | and are more helpful. Or maybe there's a big |
| made this decision, he poured all his efforts into | | | | difference that you just never thought much |
| the drug store side to become the #1 drug store | | | | about. |
| chain in all of the United States. | | | | You need to find that one or two features of our |
| On the other hand, Walgreen's main competitor, | | | | product or service that beats the competition |
| Eckerd Drug did the exact opposite of Walgreen's, | | | | every time on. It exists. |
| diversifying their businesses into video rentals, | | | | As a top performing sales manager you need to |
| security services, department stores, candy | | | | find your "Walgreen's Concept" and teach it to |
| companies and food service organizations. While | | | | your reps every day - every moment of every |
| Cork Walgreen was divesting businesses that | | | | day. |
| took away from what he could be the best in the | | | | |