Planet13 - 4:03 pm on Sep 7, 2011 (gmt 0)
As one friend says, keep diversifying until you find something to lose all your money at.
A Ha! So they have adopted MY business strategy ;)
Or as another friend says, only expand into areas that touch what you're doing now.
That seems logical. But then there are the target's and walmart's of the world that do expand into diverse areas (groceries, optomitrists, etc), and they have somehow succeeded.
Personally I'd think they'd be better off taking their extra money and lowering prices or getting aggressive somewhere else. Dominate what they're doing and expand into what they're doing. But instead they're letting the walmarts of the world compete with them on autoparts (I shop both this store and walmart for auto stuff now), and not neccessarily winning, AND they're competing with grocery stores, banks, and insurance companies - sectors they're not familiar with and have no advantage in.
I would agree. The only times I hear people mention the word Sears around here is when they are talking about tools, or about tires / car batteries. I am not so sure that Sears is still a player for appliances here in Northern California (although it sounds like they have a good reputation for that throughout the rest of North America).
I guess the other question I have is, how did the relative new comers (walmart, costco, target) displace the other discount chains (JC Penny, Woolworths, Sears, etc.,). It seems like the biggest target is the hardest one to hit, yet those companies succeeded in relegating the established companies to also ran.