It’s not possible to resolve political debates such as “Should we raise taxes to revitalize our aging transportation infrastructure?” without first achieving consensus on the role of government. The role debate, at least in my mind, is far less divisive than “how.” So, as we enter elections to determine the next US President and Congress, I thought it would be a good time to share an economist’s perspective on the role of government. There would be no role for government in our economy if – in our roles as citizens, business owners, shareholders, employees, and consumers – we acted in the best interests of society as a whole. Rather, we act out of real or perceived self-interest. There is nevertheless a huge advantage to individuals acting in their self-interest. It creates an invisible hand enabling a market-based economy. Adam Smith argued (correctly) that…
KOHL’S: Will Another One Bite the Dust?
Kohl’s Corporation, headquartered in Menomonee Falls, Wisconsin, started with a unique business model: just the soft goods. It offered consumers a comfortable buying experience at lower-than-department store prices. Some people, especially Midwesterners, swore by the brand. My sister-in-law— born, raised, still living in Milwaukee, and likely never to leave — visits Kohl’s regularly for good deals and an easy shopping experience. As it grew, Kohl’s extended its geographic reach to about 1,200 stores, creating a publicly traded stock that made for a good story until it wasn’t. Along the way, the company added more design-driven merchandise, deploying its design center located in the heart of NYC. Kohl’s became omnichannel, as all good retailers must. (Read this report on the retail industry.) Kohl’s. Macy’s. JC Penny. Is there a difference? How can you win in an environment of too much retail for a…
Is your business fabulous? It should be.
I opened the birthday card to find a silver metal cutout of the word FABULOUS glued to a background of shiny fuchsia ribbons. The message was wonderful to receive, for sure. Looking at the card days after my birthday, I realize the word FABULOUS is an important word for all of us as we begin a New Year in our organizations. Competing on more than price is getting increasingly difficult. There is excess supply in many markets. Many customers face financial pressures and want a bargain. They find them as they have more buying power than ever, be they a consumer with access to the Internet, or a business offering large contracts that you do not want to lose. The only way past competing on price is to offer your target market benefits that are relevant, unique, and hard for competitors to copy….