General Motors (GM) has returned to the honorable position as the world’s largest automaker in 2011. It was a position that Volkswagen (VW) had yearned for their planning and anticipation was flawed in much the same way as Kmart’s plan to become the world’s largest retailer.
Volkswagen had hoped to become the world’s largest automaker by overtaking Toyota, holder of the title in 2010. However VW apparently was focused on Toyota as the leader without proper respect for the GM, the company they thought would remain them in sales.
In the 1990s Kmart had been focused on the number one spot in retailing. Sears had held the position for decades and Kmart had been following a plan to overtake the full-line retailer for the top spot. Their plan worked and Kmart overtook Sears in annual sales the exact year they had forecast. However they would never enjoy the number one position.
As they approached the year they had predicted all seemed to fall in place. Sears was unable to figure out a way to create annual sales increases or expansion to retain the number one spot and Kmart was experiencing enough of an increase in both same-store sales and new outlets. All was well at the Kmart headquarters on Big Beaver Road in Troy, Michigan.
However Kmart had looked only at the current industry leader. They failed to look into the rear view mirror to see a mammoth following the, - and gaining speed. The same year Kmart took over Sears Walmart would leapfrog both retailers for the top spot in the sector.
Kmart’s lack of broad range perspective by reviewing the entire industry when making their plans cost them permanently. A decade later the two rival chains, Kmart and Sears, would become one company that would be only a fraction of the total size of Walmart.
There is no indication that VW’s disappoint is anything more than a temporary sadness. They are still much larger than Chrysler, headquartered just a couple of blocks away from VW America’s Auburn Hills, Michigan, headquarters. However it is a lesson for all business owners to consider.
Article series
- 7 Deadly sins of signage.
- 5 Deadly small business mistakes.
- Top tips for using Linked In- a series of the top three best practices for using Linked In to build business.
- Top marketing mistakes- includes a humorous video of leading marketing mistakes.
- Differentiate the right way- a series of articles about best practices in attracting customers.
Building your Business Development library:
- The 7 Habits of Highly Effective Peopleby Stephen R. Covey
- The 21 Irrefutable Laws of Leadership: Follow Them and People Will Follow You by John C. Maxwell
- The 100 Absolutely Unbreakable Laws of Business Successby Brian Tracy
- The New Leader's 100-Day Action Plan: How to Take Charge, Build Your Team, and Get Immediate Results
- Gamestorming: A Playbook for Innovators, Rulebreakers, and Changemakers
Additional resources for you:
- Blog: The Anecdotal Leader, a leadership blog.
- Book: Life’s Leadership Lessons 53 anecdotal leadership lessons. Paperback, e-book, Kindle.
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