Time to Take Control
Apr 27, 2009
Retailers just don’t get it…yet.
In order to be successful, retailers must achieve total vertical integration. The more control you have over every aspect of your brand, the better your profits are going to be. Brands must have control over every single component of their business – all the way from the big picture stuff at 30,000 feet up, down to the smaller day-to-day details at the floor level.
Take Wal-Mart for example. They are the largest retailer in the world. Why? Because they have achieved total vertical integration – from their pricing strategy to their operations to their corporate culture – they have control over every aspect of their brand. And it shows: Wal-Mart continues to post gains even in the worst economic times.
Ashley Furniture is another great example. They are the No. 1 furniture retailer in the nation. Why? Because they have achieved total vertical integration – from their manufacturing facilities to their distribution channels to their sales locations. And Ashley isn’t content to stop here – they have plans to continue domestic and international expansion.
Now that’s the way to do business.
LINKS
AdWeek: Zimmerman Snares Ashley Furniture
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