Century-Old Businesses Surviving Secrets:
- Parsons the Jewellers (Bristol, 1710, 308 Years) Secrets: “We keep evolving. Although we are 300 years old as a business, we are bang up to date with our marketing and products. We make sure we are different, interesting and never forget that purchasing anything has to be a completely enjoyable experience.”
- Robert Cliff (Plumbing, Heating and Mechanical Services, Uppingham, 1847, 171 Years) Secrets: “We try to keep people happy, do a quality job and give value for money whilst not letting people down.”
- Paxton & Whitfield (Cheesemonger, 1797, 221 Years) Secrets: “Staying close to our customers and to our suppliers and responding to both their needs. We have had to be prepared to change and work with the times. We try to innovate and were one of the first cheese companies that had a website.”
- Guilbert’s Chocolates (1910, 108 Years) Secrets: He says the secret to Guilbert’s longevity is the service the business provides to customers. “We have trade customers who we’ve dealt with for generations and provided you give that service, most customers are prepared to be loyal. “The same applies to retail; we have customers who return to the shop week in, week out. Customers appreciate value for money and the mark-up on confectionery is very small compared to other commodities.” Alan’s advice to other small business owners is to “think twice” about borrowing money. He added: “Over the years we’ve had several opportunities to expand but all would’ve involved a lot of financial input. “As the retail market can be so unpredictable they can suddenly be left with massive payments they cannot afford. It’s better to be small and successful rather than broke and non-existent.”
- Procter & Gamble (American Multinational Consumer Goods Corporation, 1837, 177 Years) Secrets: William Procter and James Gamble started making soaps and candles in 1837, and but the company expanded in to a diverse range of consumer products—from Covergirl makeup to Duracell batteries—through both innovation and acquisition. The company has managed to remain strong by consistently investing in the research and development of market-disrupting innovations that make consumers’ lives easier. The company has a couple dozen innovation facilities scattered around the world that hire scientists to research and develop new products, which have included market-altering innovations from Pringles stackable potato chips (in 1968) to Swiffer cleaning devices (in 1999). Alan Lafley, now in his second run as CEO, has pushed the company to more aggressively innovate and even invite its customers and outside inventors to suggest product concepts. Lafley “is the guy who, famously, when he is on the road, will go into individual households and watch women put on their makeup and really understand their customer,” Wartzman says.
- IBM (American Multinational Technology Company, 1911, 107 Years) Secrets: Spawned from the merger of three companies in 1911, IBM originally sold equipment, including coffee grinders and employee punch card machines. But since the company entered the computer business in the mid-1900s, it’s continually reinvented itself, says Charles O’Reilly III, a management professor at Stanford University’s Graduate School of Business. When the company faced an $8 billion loss due to its slow adaptation to the fast-growing personal computer market, management changed directions and focus on helping businesses maximize their technology use. “Today, about 80 percent of [IBM’s] business comes from” providing services such as business consulting, IT technical support and cloud computing, O’Reilly says.
- Crayola (Formerly Binney & Smith, American Handicraft Company, 1885, 133 Years) Secrets: Originally known as Binney & Smith Co., Crayola has kept one thing constant – it has sold its signature crayons since introducing them in 1903. Over the years, the company has branched out into other products for kids, including Silly Putty, but it has focused on improving its core product—such as adding more crayon colors and producing washable crayons. It’s also been lucky: No other innovation has come along to make the crayon obsolete, O’Reilly says. “They’re an example, I think, of a company that has stayed in the same business and figured out how to keep evolving,” he says. “If suddenly kids could do on iPads what they do with (crayons) then” the company may have to rethink its strategy.
- General Electric (1892, 126 Years) Secrets: The corporate giant was formed through the merger of two electric companies—in 1892. But over the years, the company diversified into everything from computer making to healthcare technology to airplane engines. GE’s secret to success has been its emphasis on grooming visionary leaders from within and being rigorously competitive—both internally and externally, says Dileep Rao, clinical professor at Florida International University. Former chief executive officer Jack Welch, in particular, created a culture that strived to be the best in every industry GE entered. The company is known for recruiting only the brightest minds and training its leaders at its own New York management school, Crotonville. It has rigorous performance metrics for its managers and continually weeds out underperformers. It expects Type A, go-getting personalities that aim to be the best in every market they’re in. “GE has done a wonderful job of shifting into new industries,” Rao says. Welch “forced GE to look at every market segment and said ‘how can we dominate this?’”