Targeting II

 If you do not make clear trade-offs, you will do everything poorly and be vulnerable to more focused competitors: 

Most wholesaler-distributor executives spend the majority of their time managing.  Managing involves constantly exhorting others to do more with less.  We cajole, sweet-talk and brow beat our teams into working harder, better, longer, and cheaper.  We tell them things like "put yourself in the customer's shoes" and various versions of "we can do it all."  We create mission statements that promise to prove premier products with flawless service at highly competitive prices.  Playing the role of cheerleader-in-chief becomes second nature--the default approach to our business.

In contrast to the manager, the strategist recognizes that you have to make trade-offs.  Is is simply mathematically impossible to simultaneously provide the industry's highest fill rates, best sales support, and lowest prices to everyone.  If you do not make clear trade-offs, you will do everything poorly and be vulnerable to more focused competitors:  the generalist with deep inventory will capture customers that need the best service levels: the specialist with great technical support will get the customers who want better solutions; and the desperate, under capitalized distributor-on-a-shoestring will take the price shoppers.  Being every customer's second choice is a recipe for bankruptcy.

ACTION POINT: Evaluate the trade-offs you will have to make to drive your business forward.