Key Idea: Buy Your Competition
You might notice that as you get stronger some competitors get weaker. The Calise brothers saw this happening and worked to buy out the competition.
Think about it
Do you want to grow? What steps do you need to take to position yourself to buy a competitor? Do you have excess capacity now? What company out there might be in trouble that you could take over or buy?
Clip from: Calise & Sons Bakery, Providence
Providence, Rhode Island: Visit an old New England family business. With roots back to 1908, the Calise & Sons Bakery has been through the good times and the bad. The founder gave the reins to his four sons and they just about ran that business into the ground. Three grandchildren came to the rescue. They bought the business, and then went to work to retire the debt. They did it, then they built the business beyond anyone's wildest expectation.
Calise & Sons Bakery now serve most of New England, New York and Pennsylvania and increasingly they'll be serving the world. Big chains and grocery stores -- The Olive Garden, Shaws and Albertsons -- depend on them. But, you know, even with such success, it is just not easy.
The Calise brothers make bread from the same recipes their grandfather brought from Italy. Yet, it took them nearly 30 years to bring this company back from the brink. The brothers learned on the job. Though there are no MBAs here, their management practices are now case studies in major business textbooks.
The adoption of technology and the acquisition of competitors have fueled growth and prosperity. These owners quickly learned a key big business secret -- grow by acquiring your competition.
Calise & Sons Bakery
Michael Calise, VP, Sales
Visit our web site: http://calisebakery.com
Buy Your Competition
HATTIE: (The Lightbulb in the Studio) Even though the Calises had to dig themselves out of a hole when they took over the company, at least they had a good product. People liked to eat their bread. By taking their mother's advice and working together, one for all and all for one, they have been unstoppable. They knew they had antiquated business practices which they had to fix first. And then, they invested in modern equipment and technology. At the same time, they invested in people. With a solid manufacturing operation, they decided their best strategy for growth was acquisition. How do you go about buying your competition? There are many ways. In this case, they did not want to buy plants, equipment, bricks and mortar. They only wanted to buy the customers, the delivery routes. If you have the system in place to produce more product, go buy your competition.
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