Watch the following video and try to spot the following ideas:
1. How Costco prevents the triggering of System 2 (remember Daniel Kahnemann’s idea) ? Costco uses Munger’s (and original Jacobi’s idea) – “Invert, Always Invert”- can you give an example?
Also read this piece of understand Walmart’s success to contrast this with Costco’s strategy.
Are they head to head competitors? Can you think of their differences? Perhaps they are having lots of similarities. Can you spot them?
Then read this piece by Tren Griffin (A Dozen things I learned from James Sinegel) and understand more about Costco.
As Griffin said
If you are the big picture guy, then you are out of picture. Retail is Detail