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Reply to "Lionel New Product Line Announcement"

Rusty Traque posted:

I doubt Lionel is quaking in their boots.

Rusty

You  seem to have missed the part where I wrote, "If they choose to do so"  To make it easier to understand,   Let's call it a slow death...  Costco, Walmart  Menards etc.) are recognized category killers.  They target a business and pick away bit by bit at the highest volume most profitable items, (in this case low cost RS, track etc.) the items the target company requires and counts on to sell in big numbers to pay the bills.   This leaves the target company with fewer sales of the important things leaving intact higher cost, lower margin items they have no interest competing with.  

Completely taking over a business is never the intention.  adding to the business bottom line wherever possible is, even if it requires destroying another.

Joe

OGR Publishing, Inc., 1310 Eastside Centre Ct, Suite 6, Mountain Home, AR 72653
800-980-OGRR (6477)
www.ogaugerr.com

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