Word: retailing
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Under Ivester's direction, Coke is pouring on the investment to attain its goal of gulping 50% of the U.S. market by 2001. The plan is to make this conspicuous brand ubiquitous by putting a Coke vending machine or retail point within arm's length of every consumer. Those market-share points are going to become harder to swallow, though. Coke and Pepsi lay out about $2 billion annually in soft-drink promotion worldwide, and spent an ugly summer in a nonstop price war. Moreover, Pepsi has its own formidable general in Roger Enrico, as well as a new game...
...million. Making matters worse, MSN has hemorrhaged money--according to one analyst, up to $250 million as of last year. By last week rumors were flying through Wall Street that Gates was ready to put his online flagship on the block. A Web journal, TheStreet.com even posted a suggested retail price--$1 billion, about what AOL paid for CompuServe--and quoted an unnamed Microsoft executive to the effect that the sell-off was set to go within six months...
Competitors of Toys "R" Us have been slapping the retail giant silly in recent years. Last week the Federal Trade Commission took a whack, ruling that Toys "R" Us had illegally forced such manufacturers as Mattel and Hasbro to withhold their products from warehouse clubs like Costco. The FTC barred Toys "R" Us from blacklisting toymakers for selling to low-price clubs. The company says it will appeal...
...very low margins. Toys "R" Us, on the other hand, might stock everything Mattel makes. Admits Costco CEO James Sinegal: "You could fill Madison Square Garden with the people who don't want to sell to us." Industry watchers say the FTC may be sending a message to other retailers whose market power exceeds their market share. "It's a warning shot across the bow," says Isaac Lagnado, president of Tactical Retail Solutions...
...skills that make one successful in the retail industry are the same skills that make one a successful entrepreneur: creativity, drive, energy and intelligence," he said...