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    1. Supply Chain

    Some CEOs Never Learn

    Oct. 23, 2010
    Here's an example of insanity rearing its ugly head again after the replication of the same mistake while anticipating a varied outcome: Jones Soda used to be a hip, niche producer whose initial distribution strategy was built around selling through ...

    Here's an example of insanity rearing its ugly head again after the replication of the same mistake while anticipating a varied outcome:

    Jones Soda used to be a hip, niche producer whose initial distribution strategy was built around selling through unique complementors like tattoo parlors and snowboarding shops.

    The company had a small sales force that sought to grow the brand through its unique distribution channel. It was a solid model: an innovative manufacturer selling its innovations through loyal distributors. Exclusive deals with Panera and Barnes & Noble followed.

    Then, the CEO at the time got a brilliant idea: Let's expand our sales and distribution further- and sell through Target and other Mega distributors. A tipping point, if you will. Sales volume surged, but profits evaporated.

    Since early 2008- before the Great Recession hit- the company has hemorrhaged money; never earning a profit. The stock is stuck at around $1 a share.

    Fast-forward to today: another CEO is brought in. What is the new strategy? To sell in 3,600 Wal-Mart stores, so as to increase sales volume. Wow...

    Click here to read more.

    About the Author

    Andrew R. Thomas Blog | Associate Professor of Marketing and International Business

    Andrew R. Thomas, Ph.D., is associate professor of marketing and international business at the University of Akron; and, a member of the core faculty at the International School of Management in Paris, France.

    He is a bestselling business author/editor, whose 23 books include, most recently, American Shale Energy and the Global Economy: Business and Geopolitical Implications of the Fracking Revolution, The Customer Trap: How to Avoid the Biggest Mistake in Business, Global Supply Chain Security, The Final Journey of the Saturn V, and Soft Landing: Airline Industry Strategy, Service and Safety.

    His book The Distribution Trap was awarded the Berry-American Marketing Association Prize for the Best Marketing Book of 2010. Another work, Direct Marketing in Action, was a finalist for the same award in 2008.

    Andrew is founding editor-in-chief of the Journal of Transportation Security and a regularly featured analyst for media outlets around the world.

    He has traveled to and conducted business in 120 countries on all seven continents.

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