Thursday, April 23, 2020

Speed Power and Politics

I sometimes teach a case based on a Bloomberg article about Speed's Power Equipment, a Stihl dealership in Sale Lake City. The crux of the case, at least as I teach it, is that Sam Wilson, Speed's Power Equipment's owner, decided to move his store closer to Home depot when it opened, rather than move further away. That was in inspired decision, since Speed's Power Equipment was a in essence complimenter, not a competitor. Since it offered a differentiated product, the Stihl line of power tools, and one that Home Depot did not (and could not) carry, it didn't compete head to head; and by locating near Home depot it benefit from geographic proximity enabling it to pick up customers where was already visiting Home Depot and who weren't able to find the quality of power tool they wanted.    

Biden has done something analogous by offering interviews to TV stations in battleground states that air while the station is waiting for Trump to hold his daily corona virus campaign events. In offering  a contrasting message, he is able to benefit from the "foot-traffic" coming to watch the Trump show and who may not find the message they are looking for.       

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