

Retail, Video Games, and Scaling Up Excellence
Dec 13, 2019
Bob Sutton, a Stanford professor and author of Scaling Up Excellence, shares his expertise on effective scaling in organizations. He highlights the importance of fostering interpersonal relationships in fast-growing companies and the need for continuous improvement. The conversation touches on Costco's sales struggles, GameStop's innovation deficits, and the contrasting successes of Adobe and Stitch Fix. Sutton also emphasizes strategic decision-making and the value of a balanced leadership approach to achieve long-term excellence.
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Costco's Website Woes
- Costco's website experienced slowdowns during Black Friday, impacting sales.
- Despite this, their membership grew, nearing 100 million cardholders.
Costco's Membership Model
- Costco's membership model has proven successful, demonstrated by consistently full parking lots.
- The company questions the value of "order online, pick up in store," unlike competitors.
Focus on In-Store Experience
- Consider Costco's approach of prioritizing the in-store experience over online pickup.
- Watch for potential pressure on membership pricing as competition increases.