To find the best locations for new resorts, Butch Stewart didn't just browse listings. He adopted a first-principles approach, renting a helicopter to fly over islands and scout for undiscovered, pristine beaches. This allowed him to acquire unique properties and build a competitive moat that others overlooked.
Innovation doesn't always have to be original. Sandals founder Butch Stewart was a 'shameless copycat,' studying other resorts to find their best ideas—from champagne service to whirlpools—and implementing them. This mirrors Sam Walton's strategy of meticulously copying successful retail practices.
Butch Stewart realized the poor airline experience was ruining the first and last impression of a Sandals vacation. He bought Air Jamaica, vertically integrating the travel process. The airline wasn't a profit center but a 'flying billboard' to ensure a seamless, high-quality experience from airport to resort.
Before launching, Tom Hale embarked on a 5,000-mile solo bike trip around the Western US. This immersive experience served as deep market research and product development, directly shaping the company's initial focus on tours through national parks.
Instead of competing in a saturated local market, seek geographic locations where your skills are in high demand but supply is low. A construction framer found massive success by flying to Alaska for work, where competition was scarce, rather than fighting for slim margins in California.
Contrary to popular belief, successful entrepreneurs are not reckless risk-takers. They are experts at systematically eliminating risk. They validate demand before building, structure deals to minimize capital outlay (e.g., leasing planes), and enter markets with weak competition. Their goal is to win with the least possible exposure.
When facing large competitors with more resources, identify what they are structurally unable or unwilling to do. Sandals founder Butch Stewart promised 8-hour AC installation and free, fast repairs to beat giants like General Electric, focusing on their inherent weaknesses: speed and service.
In the early days, Bernie Marcus would run after customers who left empty-handed. He'd ask what they were looking for, then drive to a competitor, buy the item, and deliver it personally. This was not just customer service; it was a real-time method for product and market discovery.
Instead of creating a resort that was 'okay for everybody,' Sandals founder Butch Stewart made it 'great for one killer use case.' By positioning as 'couples only,' he eliminated the conflict between romantic vacationers and families with kids, creating a premium, focused brand that owned its niche.
The founder's self-described laziness fostered a deep aversion to direct competition. This mindset became a strategic advantage, forcing the company to seek the path of least resistance by pursuing differentiated ideas and markets that others were ignoring, which is key to building a unique business.
Sandals founder Butch Stewart didn't wait for profits to reinvest in advertising. He spent millions upfront because he believed the most valuable and difficult real estate to build is the brand's position in a consumer's mind. This 'spend bigger to earn bigger' mindset established the brand's identity early.