Very few companies have grown from a small mom-and-pop business to a billion-dollar corporation. If you live anywhere near the Philadelphia area, you have probably heard of the convenience store chain named Wawa. Wawa has enjoyed a cult-like following and has been expanding since its inception in 1902.
Join Jay on the latest Black Entrepreneur Blueprint podcast episode number 576 as he gives you seven lessons you can learn from Wawa and how you can implement them into your business.
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BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 576
WHAT YOU CAN LEARN FROM WAWA
Production – Production of milk (their own product) – owned and manufactured the product.
Distribution (first iteration) – delivery of milk directly to homes
Distribution (second iteration) – Changed distribution to store locations to increase average order by providing additional products to sell. Sold other people’s products like Duncan Donuts and Duncan coffee.
Vertical Integration – Created their own coffee and donuts to sell, cutting out Duncan Donuts
Innovation – by separating made-to-order food from the rest of the store and making made-to-order food items
TAKEAWAYS
1 Wawa understands what they are selling – they sell convenience, not price
2 Wawa understands who they are selling to – people going to work who need a good quality meal, food, and gas. They also have clean, customer-friendly stores
3 Understood the economies of scale – by controlling the vertical integration from shipping in Wawa trucks to distribution
4 Innovation of order technology – touch screen made to order food separated from the checkout line to increase efficiency. Importance of fresh food and made-to-order to stand out
5 Expansion – they are always expanding; all new stores have gas, they introduce new food items like pizza and burgers, and they are expanding to new regions
6 Additional revenue streams – Wawa Inc. has launched its own retail media network (RMN) called the “Goose Media Network.” The new RMN will support customers’ convenience-store shopping experience in new ways by allowing them to engage with partner brands through custom ads and campaigns across a variety of digital channels.
7 Control – Wawa is privately owned, and the employees own a 40% stake in the ESOP (employee stock option plan)
This is how a conglomerate is built. Ran 7-11 out of business in this area
