How Sam Walton copied Costco's model and stayed friends with his competitor
“Sam, of course, goes back to Bentonville, and within twelve months, guess what pops up?”
Sam, of course, goes back to Bentonville, and within twelve months, guess what pops up?
Sam's Club.
Amazing. And this is really the major difference here between Sol and Sam. Sol doesn't care. He's like, sure. You know, again, what am I gonna do? Stop you? They stay friends. There's this amazing story that Sam tells in made in America where a few years later, Sam is going around again to Price Club shopping his competitors with his tape recorder, making notes about how they're doing pricing and inventory and stuff. And the security at the store
About this clip
This clip reveals how Sam Walton visited Sol Price's Price Club, studied the warehouse model, then launched Sam's Club within twelve months. Despite the direct competition, Sol Price didn't mind being copied and the two remained friends, with Sam even continuing to visit Price Club stores with a tape recorder to study their operations.
Why this clip
This story illustrates the fascinating dynamic between competitors who respect each other's business acumen despite direct competition.
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