Competitor Triad:

So what is the key to competing successfully against any dominant industry competitor?

Don't compete against them.

Instead, the key to profiting as a competitor in the Wal-Mart world is to make three explicit choices relative to the dominant industry player:

• How to differentiate

• What to emulate

• Where to dominate

Industry giants leaves plenty of openings for us as competitors to differentiate ourselves. We then need to emulate those attributes of the industry giant which are consistent with our own differentiated position in the market. Then we are positioned to dominate the remaining market the giant doesn't and can't occupy. These three imperatives form the triad of choices we all have to make as competitors to profit in the Wal-Mart economy.

Supplier Triad:

Even before we think about how to do business with dominant players, we have to weigh one other explicit choose-or-lose decision--whether to sell to the industry giant at all. The risks of giving up proprietary information and strategies, of overinvesting in plant and equipment, and of becoming beholden to the giant may far outweigh the potential returns. Some suppliers have consciously elected to keep certain product classifications and entire lines out of the discount channel. Examples are high-end Sony electronics, luxury fashion brands such as Armani and Akris, and department-store cosmetics brands such as Clinique.

So we face an important decision right from the start, another greed-versus-fear tradeoff. Do we take the chance of playing with the bear, at the risk of getting eaten?

If we decide that supplying to companies such as Wal-Mart is important to the success of our business, we then can devise our strategy for how to supply the dominant player in our industry by making three explicit choices:

• What to leverage

• How to invest

• Where to diversify

As suppliers, we need to identify what strengths of the giant to leverage. Second, we need to make the giant need us more by determining how to invest to rebalance the scales. We then face a choice that is critical to survival: where to diversify away from the industry giant. These three imperatives form the triad of choices we all have to make as suppliers to profit in the Wal-Mart economy. By anticipating those choices, we can first decide whether to supply the giant at all. By making and committing to them, we can craft a new strategy to win.

Employer Triad:

If we are to develop a new employment compact, what kind of approach gives us an edge in the Wal-Mart economy? With a perpetual demand to get the best workers possible, we don't want to aim too low and simply strive for a compact that's "competitive." We want to aim high and seek to develop a people strategy that directly supports our business strategy.

The key to profiting as an employer in the Wal-Mart world is to make three explicit choices about serving our employees in the face of a dominant player:

• How to reward

• How to impassion

• How to grow

The first strategic choice we need to make as employers is how to fairly reward our employees. The second choose-or-lose decision we face as employers is how to impassion our employees to be engaged and motivated. The third is how to grow our employees into more capable and fulfilled workers. In other words, how do we inspire them to aspire? These three imperatives form the triad of choices we all have to make as employers to profit in the Wal-Mart economy.

Community Member Triad:

As business leaders, we can't control the overall political, social, and environmental climate, the agenda of social crusaders, or even the demands of people at the fringes of community opinion. But we can make choices that put us at the forefront as stewards in our local and global communities. And we can use successful stewardship to drive competitive advantage and enhanced shareholder value in the Wal-Mart world.

The key to profiting as community members in the Wal-Mart world, whether we dominate our markets or not, is to make three explicit choices about community strategy:

• Where to belong

• How to align strategies

• How to engage

As the first part of our community strategy, we have to proactively choose where to belong to the community to have the greatest impact. As good stewards, we can align our business strategy and our community strategy satisfying our economic, social, and environmental responsibilities at the same time. As community leaders, we have to make a third choice: how to engage in the public debate as leaders of the agenda, not followers. These three imperatives form the triad of choices we all have to make as community members to profit in the Wal-Mart economy.