Influence people

Monday, October 30, 2017

Price Wars



While shares of retailers like Macy's and J.C. Penney continue to plummet, shares of Apple climb. Apple is not only the world’s most valuable publicly traded company, it has generated better investor returns than any since 1926, including blue-chip stalwarts like Dupont, GM, and Procter & Gamble.

Why? The answer's simple.

Whereas mass retailers like Macy's layer flash sales on top of loyalty programs on top of coupon discounts on top of even more discounts for using their branded credit cards, Apple sticks with price integrity (and a premium price, at that).

While retailers engage in relentless price wars, Apple enjoys peaceful prosperity.

Retailers brought the wars on themselves.

"Retailers could have chosen to focus on deep customer insight to deliver more relevant personalization," says consultant Steven Dennis. "They could have invested in product innovation. They could have seen their physical stores as assets to leverage in creating a more harmonious and remarkable customer experience, rather than as liabilities to cost reduce and shutter."

Meantime Apple and its shareholders flourish.

There's a lesson in this―or 10 lessons.



HAT TIP:
Many thanks to Ellie Summers for offering me her infographic.

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