Friday, December 09, 2005

OK, I admit it...........

I actually read an old article in Fast Company and thought it was worth mentioning............on Walmart no less. A good cautionary tale for anyone considering doing business with the Ogre from Arkansas.

The Wal-Mart You Don't Know

....Wal-Mart has also lulled shoppers into ignoring the difference between the price of something and the cost. Its unending focus on price underscores something that Americans are only starting to realize about globalization: Ever-cheaper prices have consequences. Says Steve Dobbins, president of thread maker Carolina Mills: "We want clean air, clear water, good living conditions, the best health care in the world--yet we aren't willing to pay for anything manufactured under those restrictions."

..It's Wal-Mart in the role of Adam Smith's invisible hand. And the Milwaukee employees of Master Lock who shopped at Wal-Mart to save money helped that hand shove their own jobs right to Nogales. Not consciously, not directly, but inevitably. "Do we as consumers appreciate what we're doing?" Larrimore asks. "I don't think so. But even if we do, I think we say, Here's a Master Lock for $9, here's another lock for $6--let the other guy pay $9.".....

In summary, Walmart can drive a company's revenue through the roof all the while killing its margins, canabalizing other sales channels and slowly become the center of its universe.

1 Comments:

Anonymous Blue Cross of California said...

I hope walmart will work to provide decent health insurance for employees as they deserve coverage.

1:22 AM  

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