Former Wal-Mart "Director of People" on What You Need to Know to Compete (It's About A Lot More than Retail)

   Michael Bergdahl worked in Bentonville, Arkansas for Wal-Mart, as the Director of “People” for the headquarters office, where he worked directly with Sam Walton.  It was Sam Walton who gave Bergdahl the nickname, “Bird Dawg”! He offers an insider’s view of how to compete with Wal-Mart.

   When Sam Walton died, Bergdahl left Wal-Mart and went to work as a member of an executive turnaround team at American Eagle Outfitters (AE). The AE leadership team turned the company around and took it public. The stock subsequently split 4 times while he was there! He then joined the turnaround team at Waste Management.

   Bergdahl has appeared on CNN, CNBC, CNN FN, CBS National Radio and Bloomberg TV. He is considered an authority on Wal-Mart.  The giant retailer’s own Public Relations Department has referred Bergdahl to interviewers interested in gaining insights into the company.  He is a columnist for VNU Publications and his articles have appeared in Retail Merchandiser, Investor’s Business Daily, Convenience Store News, Progressive Grocer, Convenience Store Decisions Magazine, the Grocery Manufacturer Association’s FORUM Magazine, the National Community Pharmacists Association’s America’s Pharmacist Magazine, American Management Association’s MWorld Magazine and the National Association of Convenience Stores Magazine.

   He wrote a book about his experiences working for the World’s largest retailer entitled:  What I Learned from Sam Walton:  How to Compete and Thrive in a Wal-Mart World, which by John Wiley in 2004.  His book is being translated into Chinese, Thai, Korean, Russian, Japanese and Spanish.  He wrote his book to help Wal-Mart’s domestic and international competitors develop proactive success strategies. Interestingly, his book is sold on both the Wal-Mart and Sam’s Club web sites. He recently completed his second book entitled, Sam Walton’s Golden Rules for Success:  10 Ways to Prosper Personally and Professionally in Today’s Wal-Mart World, which will be published in 2006.

   He wrote his book to help Wal-Mart’s domestic and international competitors compete, survive and thrive in the shadow of the retail giant. He designed the book around the acronym “P.O.C.K.E.T.S.” based on the fact that to succeed in a Wal-Mart World you have to carve out a “niche” or “business pocket” in order to be successful. Each of the letters in the acronym represents a chapter in the book as follows: P. – Price, O. – Operations, C. – Culture, K. – Key Item Promotion/Product, E. – Expenses, T. – Talent, S. – Service. In each chapter he addresses some of the inside strategies and tactics utilized by Sam Walton and Wal-Mart that make competition with them so difficult.

Programs:

1) F.I.R.S.T – Secrets to Outperforming the Pack
   From his experiences working for World Class “Best Practice” Companies like Pepsico’s Frito-Lay Division and Wal-Mart, Michael Bergdahl shares with you some of the secrets of their success. As a turnaround team member at American Eagle Outfitters and Waste Management, learned what it takes to turn a failing company around. He shares the secrets of outperforming the pack in this speech using the acronym F.I.R.S.T. which stands for; Focus on the Customer, Inspirational Leadership, Results through People, Succession Planning/Bench-Building & Tactics for Driving the Business. Combining energy, storytelling and humor with his practical experience working with executives like Sam Walton, Bergdahl will entertain and provide practical and actionable business ideas to those in attendance.

2) What I learned From Sam Walton: How to Compete and Thrive in a Wal-Mart World
   In this speech, using the acronym “ P.O.C.K.E.T.S.”, which stands for Price, Operations, Culture, Key Item Promotion, Expenses, Talent and Service, Michael Bergdahl describes several effective strategies competitors can and have used to counteract the inevitable pressure created by “big box” retailers. Finding your niche in the market or “POCKET” is the key to Your survival! The key is to avoid the temptation to compete on price. You’ve got to make the commitment to differentiate yourself by looking for “POCKETS”! You will learn some secrets other companies have used to compete, survive and thrive in a Wal-Mart World!

3) How to Compete and Thrive in a Wal-Mart World for the Healthcare Industry

   Michael Bergdahl will discuss Wal-Mart’s Health Care Clinic Strategies and Tactics and what Health Care Providers need to know to compete effectively.

   Wal-Mart’s “Every Day Low Pricing” and “One Stop Shopping” philosophy have changed the retailing and manufacturing business in America and around the world.  They are about to do the same thing to the Health Care Industry.  With their endless pursuit of controlling costs and passing the savings along to their customers, retail competitors small and large have found it impossible to compete.  The same changes are about to happen in the health care industry. Health Care Providers need only look at the facts and learn from other industries the impact of Wal-Mart’s low price strategies.  As an example, look at how Wal-Mart’s “product commoditization” is shifting the competitive paradigm:

Convenience Stores:  When Wal-Mart entered the gasoline business 25% of convenience stores in the USA closed their doors.  It is estimated that another 25% will fail over the next 10 years!  It is rumored that Wal-Mart may fill the USA gasoline production capacity void by opening its own refinery to supply its store.

Generic Prescriptions:  Wal-Mart just rolled out a $4.00 generic prescription program across Florida with a nationwide rollout underway.  Over 300 generic drugs are included in the $4.00 program.  Other Pharmacy retailers have committed to match the $4.00 generic program at their stores. 

Banking: Wal-Mart currently leases space to banks in over 1000 of its stores in the USA.  Recently Wal-Mart applied for an Industrial Banking License.  The banking industry is in an uproar with its lobbyists vigorously fighting Wal-Mart’s predicted direct entry into private label banking.

Group Health Insurance:  Wal-Mart already offers low cost group health insurance to businesses, individuals and families through its Sam’s Club Division.  It is likely Wal-Mart will begin offering group health insurance plans through Wal-Mart’s Stores also.  (Note:  Home Depot recently announced its intention to offer group health insurance to its customers.)

What’s next for Wal-Mart . . . Primary Care Health Clinics!   With 12 clinics currently open and plans to have 50 open by February of 2007, Wal-Mart is moving quickly to achieve its goal of opening health care clinics at all of its 2000 Supercenters.  These clinics offer non-urgent/non-emergency care what Wal-Mart terms “Routine Medical Services”.  The types of services and treatments offered include:  Drug Screening, routine physicals, blood screening, cholesterol screening, bladder infections, upper respiratory infections, sinus infections, sore throat, allergies and immunizations.  All of the “bundled” treatments are offered with posted low prices so patients know exactly what the costs are before the treatment is provided.  No appointment is necessary to see the “nurse practitioner” who provides both the treatment and prescribes medications.  A Doctor is “on call” to support the nurse practitioner via telephone as needed.  By the way, the clinics are open 7 days a week!